23 February 2012
Dear sir, In case of a proprietor of a petrol pump started in feb. 2011. Gross purchases in two months of FY 2010-11 are 1332501/- and sales are 1444867/- Defacto his net profit is about 2% hereby I have some queries - 1. Should he opt Section 44AD or file return showing profit @ 2% without audit. 2. In FY 2011-12 his turnover has cross the limit of 60 lacs. Therefore what rate of profit should opt for FY 2011-12, if he files return for FY 2010-11 U/s 44AD.
23 February 2012
I shall suggest you to get the books of accounts audited and let the acutal profit be declared.. for the very reason that next year you are under the 44AB limits and any how you shall require to get your accounts audited.
Doing the above there shall be risk of penalty for delay on getting the books of accounts audited. Next alternative shall be to offer 8% income. You shall have to take a call on the same.
CAclubindia
