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Milk Sales Income

CHIRAG (Student CA IPC / IPCC) (35 Points)

17 August 2021

MY CLIENT HAVE PROVISION STORE IN F.Y 20-21 THEY SALES 4200000/- MILK PACKET ( AMUAL MILK PACKET) SALES

PLEASE TELL ME IF I SHOW 4200000/- IN ITR 4 @ 8% THEN OK OR IT REQUIRED AUDIT.

& THERE ARE LAIBILE FOR GST REGISTRATION OR NOT.

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4 Replies

S JEEVARETHINAM (Sr Manager Finance and Taxation) (137 Points)
Replied 17 August 2021

1.Milk is exempted goods

2.Please check whether he is having contract with Amul.

3. Tax will be on sales commission/service charges

4.If he purchase with GST, Then he can apply for GST Reg

5.No audit is required

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CA Raj Doshi (Practising CA) (8903 Points)
Replied 18 August 2021

Agreed with Mr. Jeeva

If is it on commission / service charges basis then cannot offer 8% of turnover. You will have to prepare P/L account. Form 26AS will come handy while deciding this.

Regards
CA. Raj Doshi

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 August 2021

Not required for tax audi, go for presumptive taxation @ 8% of turnover

Sivaramaraju G (Learner) (2398 Points)
Replied 18 August 2021

if you are a commission agent then you can not adopt 44AD but you have to go for normal business return that is ITR 3 by preparing PandL and BS. and audit is not required as turnover is below 1CR.