15 August 2012
Dear Expert, Suppose there is a party who has opted Section 44AD in AY 2011-12, having turnover around 54 lacs. However in AY 2012-13 their turnover is about 96 lacs, therefore it a audit case in relevant year. If the party still holds the net profit at 8%, it would increase their tax burden. Whether the party can show net profit @ 5%or it can cause any problem. Please advise me.
16 August 2012
when sec 44ab comes with audit, 8% bar is not applied, however if profit is reduced, the department may take the case for scurtiny purpose.
CAclubindia
