Saurabh Toshniwal (ca final) (2363 Points)
20 December 2010suppose an assesse (individual) is engaged in business of manufacturing of Rice and his turnovers are:
i) rs. 35,53,213
ii) rs 20,54,458
iii) rs. 5,64,854
a.) whether he is required to maintain books u/s 44AA ,
b.) whether he can disclose profit from his business u/s 44AF
Neha
(Article)
(118 Points)
Replied 20 December 2010
a.) In first two cases i.e. wen turnover is 35,53,213/- or 20,54,458/-, books of accounts are to be maintained as turnover exceeds 10 lacs. But in third case, as turnover is only around 5lacs, books are nt mandatory to be maintained, bt the net income should not exceed 1.20 lacs
b.) 44AF covers only Retail Trading Business. So, here this particular section can;t be applied.
janak
(post graduation)
(1327 Points)
Replied 20 December 2010
He is required to maintain books of accounts as per section 44AA
Since manufacturing of the rice then Ist hand sales ...........is not "retail trade" .therefore it does not attract to the applicability of section 44AF.
CAclubindia
