Vignesh Loganadan (30 Points)
03 April 2018
RAHIL
(ACCOUNTANCY)
(247 Points)
Replied 03 April 2018
Yes, audit is applicable as profit is below 8% of T.O. , If dont want to get accounts audited, profit of 5.2 lacs should be declared. However if whole amount of turnover is received via cheque or draft then min profit req. to be declared is 6% of T.O.
A B Kundu
(Professional)
(1422 Points)
Replied 03 April 2018
1) If the company is opting for Sec.44AD, i.e., filing return under presumptive basis, then the tax audit is applicable as the profit disclosed is less than 8% of the turnover.
2) If the company is opting for Sec. 44AD, i.e., filing return under presumptive basis, but all the receipts have been received through any mode other than cash, in that case profit can be shown 6% of the turnover, provided the total amount received before filing of the return,i.e., return due date In that case, tax audit is not applicable.
3) If the amount received partly in cash and partly in any mode other than cash, then separately the 6% and 8% would be calculated, and you need to check whether the profit shown is coming below the calculated amount.
4) If Sec.44AD is not opted,i.e., proper books of accounts have been maintained, then the tax audit wont be applicable as the turnover is below Rs.1 Crore.
Vignesh Loganadan
(30 Points)
Replied 04 April 2018
V S A PRASAD
(CHARTERED ACCOUNTANTS)
(46 Points)
Replied 04 April 2018
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