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Tax audit report

Sanjeev Singla (Chartered Accountant) (59 Points)

04 January 2013

A assessee is dealing in the business of sale of Liquor. Sale from the Liquor is Rs. 48 lakhs and now want to use section 44 AD presumtive Taxation. Is there any extra report to be attached with tax audit report??? or simple 3CD is required with 3CA/3CB. !! if there is any extra report required then format of report email me at ca.sanjeevsingla @ gmail.com

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11 Replies

SUDAGAR.C (Prop) (119 Points)
Replied 04 January 2013

Dear singla No tax audit report required for 44 AD

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Karthik Venkatram (Chartered Accountant) (247 Points)
Replied 04 January 2013

Yes. agree with Sudhakar. Presumptive Taxation is different from 44 AB.

More over , 44 ab is applicable only if,

Turnover >60 lakhs = AY 2012-13

Turnover > 1 crore = AY2013-14.

CA CS Chirag (Practicing CA) (834 Points)
Replied 04 January 2013

in case assessee is opting for presumptive taxation he did not required to get his books of account audited, so no reports are required and tax audit is also not applicable if he is opting for 44AD

Sanjeev Singla (Chartered Accountant) (59 Points)
Replied 04 January 2013

thanx for ur reply.

Now situation is:-

He opted the section 44 AD but does not want to show profit 8%. As per profit & loss made the profit % comes to 5%. it means proper tax audit required. Now is any tax report is applicable for liquor business?

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 04 January 2013

IN SIMPLE WORDS IF HE OPTS FOR SEC 44AD NO TAX AUDIT REPORTISREQUIRED...

BUT IF HE DOESNT FOLLOW STRICTLY SEC44AD AND HAS CROSSED THE LIMIT OF TAXABLE

TURNOVER OF 60LAKS OR 1 CRORE AS THE CASE MAY BE FOR RESPECTIVE AY THEN EVEN

IF LIQUOR BUSINESS IS THERE TAX AUDIT REPORT IS REQUIRED.

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Sanjeev Singla (Chartered Accountant) (59 Points)
Replied 04 January 2013

thanx to every1 for their reply.......:)

1 Like

Vaibhav Kumar Agrawal (Service) (168 Points)
Replied 04 January 2013

If you claim your net profit to be less than 8 % then tax audit required and no other reports required. But if you opt for 44 AD then your profit from business will be taken @ 8% of turnover i.e 3.84 lakhs and in that case no audit is required.

Sanjeev Singla (Chartered Accountant) (59 Points)
Replied 04 January 2013

ya thanx Mr. Vaibhav...... i got it now that no extra report is required other than 3CA/3CB for Liquor tax audit report.

Kulwant Singh Khalsa (CA STUDENT) (105 Points)
Replied 06 January 2013

Suppose, now instead of claiming 8% he claims 4% in this case profits comes to Rs. 192000/-(which is below the chargeable limit of tax - Individual). Then in this case do he is required to get his books of accounts audited and maintained...???

CA DANISH BADAR (CA) (21 Points)
Replied 07 January 2013

Kulvant singh MANT is another matter and tax audit requirement by virtue of 44AD is another matter. tax audit is required if you show your profit less than 8% for other than 44AB cases. and after deciding your profit you check the taxable limit by MANT.