Sales = 42,00,000
Sales Return = 4,00,000
Total Sales = 38,00,000
IS This Case Is AuDit CASE U/s 44AB Or Not??????
thanks in advance...
Pls Reply Soon
6 Replies
CA. PRANAV K LIMAJA
(CHARTERED ACCOUNTANT)
(44 Points)
Replied 28 March 2009
If the sales return is well within the period of 6 months it will be treated as sales of Rs. 3800000/-. We have to take references from other laws if it is not clear from the same Act. Also in case of sales returns the conditions of comodities returned should be checked wether it is returnable or not? It might be possible that the scrap is returned and shown to avoid tax audit U/s. 44AB
pankaj
(article)
(107 Points)
Replied 29 March 2009
No, the assessee will not be liable for the tax audit because the net sales should be greater that or equal to Rs.40 lakhs. In the above case as per sec.44AB(a) if the total sales or tirnover exceeds Rs. 40 lakhs in any previous year then the assessee shall be liable for tax audit.
praveen
(Chartered Accountant)
(6971 Points)
Replied 29 March 2009
sales refers to sales net of returns hence it does not cross the 40K mark hence no audit.
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