15 September 2009
Is audit compulsory for pre-primary school having only 8 children and gross receipt of only 8000/- per month in initial stage as break even point is at least two-three years.Similarly in case of newly established trader which starts generating profits after three four years.Advise.
17 September 2009
No. Audit is not compulsory for all assessees. In case of a school if it is run and owned by an Individual/Firm at this level no audit is required. In case of Traders when Gross sales exceeds Rs 40.00 lacs then only audit is required.
18 September 2009
AS per new Finance Bill for 2009, Even samll traders with T/o less than 40 lacs have to show 8% net taxable income of gross receipts otherwise audit. Please clarify, n that case audit would be compulsory for newly established firms who incur loss in initial stages to claim loss.
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