praveen (Chartered Accountant) (6971 Points)
28 September 2009hello
If a retail business man has sales around 35 Lakhs
&
Service and phone rental business of rs.5 Lakhs, then will he be liable for audit under section 44AB.
can income be showed under 44AF.
can income from services and rental not relating to sales be shown under income from other sources.
thanks
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 28 September 2009
A person or firm shall be liable to tax audit if its turnover is 40 Lakhs or more. to cover service & phone rental income under income from other sources its nature should be known......
Sunil
(Trader)
(2611 Points)
Replied 28 September 2009
If your retail turnover is below 40 lakhs and you intend showing 5% or more as nett profit, you can avail 44AF on the retail turnover and you do not have to audit the books of retail turnover provided your turnover, other receipts does not exceed 40 Lakhs after deducting the retail turnover. However, please check with your CA and go through ready reckoners for section 44AF. You will have to have books for your other turover u/s 44AA even if it is not under audit and the financial statements should prima facie look reasonable and commensurate to your nature of business.
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 08 June 2010
For 44AD,AE and AF we have see seperately the turnover for each individual business. . only in retail business if turnover exceeds 40 lakhs, tax audit is compulsory. . Also if the assessee says that his income is less than the presumptive rate i.e 5% on his turnover 44AB is attracted. .
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 08 June 2010
since retail business turnover doesnt exceed 40 lakhs and other business income is only 5 lakhs.... he is not covered under 44AB
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
