IF A JEWELLERS HAVE 10,00,000.00 SALES & MAKEING CHARGES 50,000.00 THERE PROFIT IS 35000.00
HE IS REQUIRE TAX AUDIT ? NOTE THAT INCOME DEPEND UPON ONLY MAKEING CHARGE NOT ON TURNOVER
9 Replies
Sourav
(Achieving d UnAchieved)
(991 Points)
Replied 20 November 2013
If the jeweller is only providing service, he is a service provider and not a trader. So how can he have a sales turnover ?
LALIT KUMAR GANERIWAL
(accountant)
(241 Points)
Replied 20 November 2013
B COZ HE BUY AT MKT RATE &SALE ALSO AT MKT. RATE THEN HOW HE EARN 8% ON TURNOVER?
Nikhil Kaushik
(Fellow CA)
(85743 Points)
Replied 20 November 2013
Dear lalit,
To answer your question. Yes, in order to claim profit less than 8% the jeweler has to go for a tax audit
Vidya Totad
(student)
(52 Points)
Replied 21 November 2013
If you don't mind can i ask you one question.
is there no benefit for purchase and sale of jewellery ? Then what is the return for turn over
LALIT KUMAR GANERIWAL
(accountant)
(241 Points)
Replied 21 November 2013
vidya ji the profit on sale of gold depend upon mkt. rates
Akshay
(CA in Practice)
(21 Points)
Replied 21 November 2013
Audit depends on how we treat income portion..if the marketing of 50000/- exp give receipt of 85000/- which earns a profit of 35000/- ...means no audit required.
sathianarayanan.t
(chartered accountant)
(267 Points)
Replied 22 November 2013
No need for tax audit. If your client is an individual, Sec 44AD is not applicable if your taxable income is below the exempted limit. Hence 8% of income is not applicable here because the income in the given case is Rs. 35000 only. So, let me know the status of the the assessee
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