CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 17 April 2011
60 lakhs gross receipts criteria will apply
chintan
(CMA,CA Final,LLB,B.com)
(135 Points)
Replied 18 April 2011
What means gross receipt here?????
wether it means Gross profit after deduction of all the charges from the Profit ?
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 18 April 2011
| Originally posted by : chintan | ||
 |
What means gross receipt here????? wether it means Gross profit after deduction of all the charges from the Profit ? |
 |
i think it means Gross Receipts from sale of Shares.....before deducting any expenses
Mohammad Asif
(chartered accountant)
(191 Points)
Replied 04 May 2011
it will mean only receipts without charging for any expenses.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 05 May 2011
This is not the position. Turnover from sale of shares shall not be the criteria.
The criteria is the total of the mod values of the profit and the loss figures arising out of the trading transactions. This is applicable for those who want to carry it as business and not as investment.
If the gross receipts of sales is taken audit may become applicable in the very first day
Let us understand this with the helf of illustration.
Case 1:
Profit : 25 Lakhs
Loss: 25 Lakhs
Total of mod values: 50Lakhs
Audit Not Applicable
Case 2:
Profit: 40 Lakhs
Loss: 25 Lakhs
Total of mod values: 65 Lakhs
Audit Applicable
Case 3:
Profit: 10 Lakhs
Loss: 55 Lakhs
Total of mod values: 65 Lakhs
Audit Applicable
I hope you are clear with the concept now.
CAclubindia
