i am a bussiness man, gst is taken (composition).i am paying 5 % slab goods while purchasing goods &while selling it i am paying 1% tax because of opting composite , @ end of the year we r showing 8 % net profit in itr,here i am earning not even much ,which I am paying as a taxes to the government.
Here my question is shall I show profit ratio less than 8 %.
3 Replies
CA Prashant Taparia
(7 Points)
Replied 22 June 2019
Well in that case you will be liable to get your accounts tax audited u/s 44AD
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 22 June 2019
Maintain books of accounts and get them audited under income tax act if your income exceeds the basic exemption limit.
Sivaramaraju G
(Learner)
(2398 Points)
Replied 22 June 2019
yes you can show less than 8%provided if you receive your turnover through bank then you can show 6%of turnover as net profit and if not and still if you want to show less then you need to maintain books of accounts and get tax audit done through CA.
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