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AUDIT U/S 44AB IS MANDATORY

B GKAMATAR (TAX CONSULTANT) (145 Points)

22 May 2021

IAM DEALING IN MOBILE CURRENCY MY TOTAL SALES RS 1CRORE AND 20 LACS IN FINANCIAL YEAR 2020-21. MOBILE CURRENCY UNDER GST ACT COMES UNDER SERVICES. U/S.44AB AUDIT IS MANDATORY

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10 Replies

Sivaramaraju G (Learner) (2398 Points)
Replied 22 May 2021

What is mobile currency??

As you are saying it is a service and it exceeds 50 lakhs and also it is not a specified service as per 44AA hence you can't go with 44ADA.

So you have no other option except go for audit.

Will you get commission for this mobile currency service?? if so in that case also 44ADA is not applicable.

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veerendar singh (tax consultant) (3301 Points)
Replied 22 May 2021

If u can declare 8% of turnover as profits then go for 44ad

B GKAMATAR (TAX CONSULTANT) (145 Points)
Replied 22 May 2021

I will get commission rs 10lacs.then what to do

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 22 May 2021

If your receipts and payments is 5% in cash and 95% in online mode then for audit purpose turnover will be 5 crores rupees and in case receipts and payments are greater than 5% in cash then turnover limit will be 1 crores rupees

Sivaramaraju G (Learner) (2398 Points)
Replied 22 May 2021

For commission business 44AD won't be applicable. and we have relief for assessees who are doing business and making turnover up to 5 Cr subject to the following conditions.

when cash receipt and payment made during the year does not exceed 5% of total receipt or payment, as the case may be.

In other words, more than 95% of the business transactions should be done through banking channels.