27 September 2013
My client being an individual has a turnover of 6.5 crores from octrai collections, where my client pays for the tender to the government. my query is is it necessary to show 8% profit over turnover in such cases where business dealt with governement? please help me.
27 September 2013
Parulji tax audit is mandatory in this case as the turnover exeeds 1cr. There is nothing is compulsory to show 8% prifit if actual profit is less then 8% .
28 September 2013
Criterion of 8% is under presumptive basis. If assessee opts for presumptive basis and shows profit below 8% then tax audit is required else not. If assessee files return under normal provision then tax audit is not mandatory. Further how much profit to be shown to avoid notice is not answerable. Only profit % is not a criterion for notice. Show true facts so that consequences need not to be faced when notice comes.
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