U/s44AB

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 Total Sale is Rs.35,00,000/-
Total Purchase is Rs.45,00,000/-
So it is liable for Compulsory Audit u/s 44AB or not.....
Please give me answer as soon as possible......

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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27 July 2010 Tax audit under Sec 44AB is based on the total sales/turnover and not purchases. As the total sales is below Rs. 40 lakh, tax audit in not applicable.

However, audit as per Sec 44AF may be necessary if involved in retail business & net profit offered to tax is less than 5% of total turnover. The limit for tax audit u/s 44AB has been increased to Rs. 60 lakh from FY 2010-11.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 Thanks to C.A. Pradeep Nayak

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