Matter of audit

This query is : Resolved

Guest

Guest (Querist)

31 March 2012 gud evening to all experts,
supoose sir i have 5 truck and my gross turn tover above 60 lakh.
1-if i wil profit less than 8 % than will i audited my account
2- if i will show profit 8 % than will i audited my account

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 Firstly since you are in the business of trucks, you are covered u/s 44AE.

Section 44AE has no criteria for turnover. The only condition is that the assessee should not own more than 10 trucks at any time during the year.

Minimum income is NOT 8%. It is as under:

Heavy vehicle - Rs. 5,000/- per month per truck.
Other vehicle - Rs. 4,500/- per month per truck.

Guest

Guest (Querist)

31 March 2012 No sir u don’t understanding my query my query is only that I m a transporter and sir I have 5 truck than plz tell me only this . that
1-if I will show profit less than 8 % than will I audited my account. While my gross turn over above 60 lakh. And sir
2- if I will show profit 8 % or above than will I audited my account. While my gross turn over above 60 lakh.
Thus plz tell me only this that in both condition will I audited my account

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 As I said the requirement of turnover & 8% of gross profits is applicable for Section 44AD.

A transporter is covered u/s 44AE. The above requirements DO NOT apply to a transporter.

He has to get his accounts audited if he oqns more than 10 trucks during the year or he declares an income less than the amount specified u/s 44AE.

Guest

Guest (Querist)

31 March 2012 MEANS SIR I HAVE 5 TRUCK AND IF I WILL SHOW PROFIT LESS THAN 8 % THAN I WILL AUDITED MY ACCOUNT. TRUCK .

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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31 March 2012 Mr. Rajeev

First of all i suggest you to read carefully the reply given by the experts.

I agree with Mr. Bharadwaj that concept of showing 8% income is not at all applicable to transporter having truck income.

Audit require only in case when the transporter showing income less than Rs 5000/Rs 4500 P.M for each vehicle.

In your case assuming it is heavy vehicle audit require only when shown income lesser than Rs. 3,00,000/-

Hope that now your query is solved and understood to you.

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Guest

Guest (Querist)

01 April 2012 thanks to all experts