Dear Chartered Accountants,
In tax audit they tells 8% 5% 6% determine of Profits....How to apply ??could you please give me an some examples....
% means of turnover ??
Yes, % means percentage of turnover to arrive at profit margin in case of sec. 44AD
For its detail working refer:::
https://www.caclubindia.com/forum/-which-percentage-use-591290.asp
Similarly for specified professionals it is 50% of total receipts.
Now, sec. 44AB specifies limit for tax audit in case of business as 1 Cr. or 10Crs.
If the cash receipts & payments are less than 5% of total receipts/ payments, then the limit is 10 Crs., otherwise it is just 1 Cr.
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