Hi,
My client transacted in commodities and incurred loss of around 50,000/- . His total income including salary and other sources income is above exemption limit. Is tax audit required for him?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166601 Points)
Replied 21 July 2018
Turnover of commodity transaction?
Raj B
(Owner)
(97 Points)
Replied 22 July 2018
shalini
(CA)
(525 Points)
Replied 22 July 2018
These are not intra-day transactions so I added all sales value. It came out to rs.22639062.
Is it correct? Also, let me know if tax audit is required or not?
Raj B
(Owner)
(97 Points)
Replied 22 July 2018
shalini
(CA)
(525 Points)
Replied 22 July 2018
My understanding is that these will need to be audited based on your turnover (either turnover crosses the 2 Crore mark or in case the turnover is less than 2 Crore and profits is less than 8% of the total turnover). So in my case turnover is less than 2 crores and since I have losses of 50,000 which is less than 8% of turnover, I need to get the tax audit.
Please guide
Raj B
(Owner)
(97 Points)
Replied 22 July 2018
shalini
(CA)
(525 Points)
Replied 22 July 2018
| Originally posted by : Dhirajlal Rambhia | ||
 |
Turnover of commodity transaction? |
 |
Sir, turnover is around 3 lakhs (total of profit and losses) and losses are around 50,000.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166601 Points)
Replied 22 July 2018
The turnover of 3 lakhs is below the limit as specified u/s. 44AA....... i.e. no books of accounts required to be maintain, as such no audit mandatory, even if the GTI exceed BEL....
Good Luck ....
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
