Payment to relatives

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

12 August 2013  

HELLO FRIENDS,

MY CLIENT HAS A PROPRIETORSHIP FIRM, DURING THE PREVIOUS YEAR HIS SALES AMOUNTS TO RS 3 CRORES ALL HIS SALES TO THE FIRM IN WHICH HIS FATHER IS PROPRIETOR.

PLS. TELL ME IN AUDIT REPORT WHETHER I HAVE TO REPORT U/S 40 A (2B) PAYMENT TO RELATIVE OR NOT

I THINK IT APPLIES TO PURCHASE AND NOT SALES.

PLS. HELP ME.

THANKS.