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Tax audit u/s 44ab
one of my client purchases has above 1crore and sales has rs.below 1crore.so in this case wheather tax audit will apply or not.plz reply
Replies (16)
No in this case tax audit not applicable.
Agree with Mr.Dixit.applicability of tax audit depends up on turnover (sales) and not purchase.
No need of tax Audit. However if the profit is less than 8% than Tax Audit will be applicable.
Depends on the constitution of the organization
if its a company then no tax audit as mr dixit said
if it is not a company then as mr singh said the 8% Rule will apply
If sales exceeds Rs. 1 Crore then tax audit is compulsory & not on purchase value
If u have to show net profit of t.o. below 8% then Audit is compulsory.
If purchase is greater than sale, it would be a loss situation. In this case section 44AD could be applicable
for example profit is around 7% and assessee want to avoid tax audit to save on such audit expense then can he show his profit at 8% ?
Goyal Sir. U can file ur return u/s. 44 AD whatever the sale or pur. U have to show ur net profit @ 8% & not less than this.
Karanji. U can file ur IT Return as per sec 44 AD @ 8% net profit of the t.o. U have no need for Tax Audit when u show ur profit ratio @ 8 % or more than this.Simply u can show ur profit from 7 to 8 in ur case.
Tax audit is manadatory if assessee is showing net profit below 8% u/s44AD. But if assessee is showing profit above 8% then Tax audit is not required.
If real profit is less than how I can diclare more profit and next year what will be ratio if turnover is more than 1 crore.
Tax audit is not applicable, however if purchase is more than sales thn u should not continue with that business line..
No need for tax audit b.coz u trunover below the limit 1crore & if u profit diclear below 8 % than tax audit apply
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