Gross Profit related

This query is : Resolved

Vaneet Monga (Querist)
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31 March 2021 Dear Sir

Please suggest regarding GP. In 2018-2019 My Gross profit 8.37% In 2019-2020 its 8.37% But in current Financial year 2020-21 its 7.10% even my purchase and sale increase from last year. Can i face any issue Surcharge or plenty from Income tax or GST department.
Please guide

CA Gunjan Agarwal

CA Gunjan Agarwal (Expert)
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31 March 2021 Check if you are liable for tax audit under sec 44ab .As in some cases profit below 8% require tax audit.
In other case if you have logical reason for lower profit then it will be no issue

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CA Puja Sharma

CA Puja Sharma (Expert)
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31 March 2021 IF your sale and purchase including expenses have been correct recorded then any percentage of GP will be acceptable as genuine.

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