Advice needed for ITR filling on case of trading business .
1. Business line - Purchase and sale of fabrics .Purchase payment on cheque /DD basis and sale invoice raised on cash basis .
2. Expected turnover - 1.5 crore to 2 crores
3. GP would be 3-4 % and NP would be 2%
4. The firm formed should be propreitorship or private limited taking into account Audit guidelines of 44AB as the turnover is more than 60 lacs and profit margin is less than 8%.Is it feasible to do this type of business with proprer tax filing without evasion of tax and is this type of low margin business model is acceptable by income tax dept .
CAclubindia
