31 October 2008
IN 44AA ITS MENTIONED THAT BOOKS OF ACCOUNTS ARE REQUIRED TO BE MENTIONED FOR NON PROFESSINALS IF SALES EXCEEDS 1000000/- IN ANY OF 3 PRECEEDING FINANCIAL YEARS.
IN 44AF(RETAIL TRADE) IF WE PRESUME TAX AT RATE OF 5% THAN WE ARE NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS
NOW SUPPOSE Mr. X IS ENGAGED IN BUSINESS OF RETAIL TRADE AND HAS TURNOVER OF 3000000/- AND AS PER PROVISIONS OF 44AF HE PRESUMES HIS PROFIT AT Rs.150000/-(3000000*5%). SO HE IS NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNTS U/S 44AF BUT AS PER PROVISIONS OF 44AA HE IS REQUIRED T MAINTAIN AS TURNOVER EXCEEDS Rs.1000000/- ! HERE BOTH PROVISIONS ARE CONFLCTING WHAT SHOULD I DO ?
31 October 2008
As per section 44AF(4),in the given situation,provisions of section 44AA is not applicable. Therefore question of conflict does not arise in my opinion.
CAclubindia
