13 March 2010
We have partnership firm trading in cement, turnover is less than 40 lakhs and due to low margin our GP is less than 5%, do we need to audit our accounts ?
13 March 2010
My tax consultant advises me that we have to audit accounts , can u please tell me provision of which section of income tax act , i need not get my accounts audited ?
13 March 2010
your tax consultant is right on the assumption that you are not maintaining books of a/cs and your income is ascertained under sec-44AF of the Income tax Act, 1961 where 5% net profit is to be calculated on gross turnover, if your net profit is less than 5% you have to audit your books of a/cs.
15 March 2010
We are maintaining proper books of accounts and in our business of cement which of semi-wholesale type profit margin never crosses 3%, do still i have compute my taxable income u/s 44af or get my accounts audited , kindly guide if any other option is available under which i can compute my tax liability on actual income
CAclubindia
