Turnover-Audit Query/Option Traders(Re-
- Thread starter aja
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Yes,there are 2 methods to calculate turnover and its still a grey area.
But the question is why will a CA adopt this way and kick his own profit by avoiding Audit?
20k audit cost,5k normal filling cost
But the question is why will a CA adopt this way and kick his own profit by avoiding Audit?
20k audit cost,5k normal filling cost
Good CA firms don't apply different styles, they find out the best process and applies it to all their clients. For a good CA firm reputation is bigger than making money dishonestly.
Unfortunately, most CA think,, trading means Trading Goods & Finished Products.
Have no idea about Derivative Trading...PE, CE ??
wo kaisa product, jo har mahina expire ho jata hai? :lol:
This method
Also
http://www.traderji.com/taxation-matters/100572-f-o-turnover-calculation.html
My CA is very talented, he has own CA farm. He found the best possible way to reduce turnover and take the simplest method within the IT rule.
He made script/contract wise calculation to reduce turnover down since last 4 years for me.. This is well accepted method for Derivative Contracts, but very few people have such details knowledge. I hv shared it here.. to benefit more...
Now some very big brokers following the same method for their lakhs of customers....They changed whole turnover calculation from per trade to script/contract wise calculation... no need to say anything more about this method...now lakhs following this method..topic end..
He made script/contract wise calculation to reduce turnover down since last 4 years for me.. This is well accepted method for Derivative Contracts, but very few people have such details knowledge. I hv shared it here.. to benefit more...
Now some very big brokers following the same method for their lakhs of customers....They changed whole turnover calculation from per trade to script/contract wise calculation... no need to say anything more about this method...now lakhs following this method..topic end..
Also
http://www.traderji.com/taxation-matters/100572-f-o-turnover-calculation.html
Yes,there are 2 methods to calculate turnover and its still a grey area.
But the question is why will a CA adopt this way and kick his own profit by avoiding Audit?
20k audit cost,5k normal filling cost
But the question is why will a CA adopt this way and kick his own profit by avoiding Audit?
20k audit cost,5k normal filling cost
sometimes priority must be given to the interest of the client .A True professional , ( he / she may be a Doctor / lawyer / CA or any other ) always gives priority to the need of his / her client ..
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Because I am his old trusted client.
Good CA firms don't apply different styles, they find out the best process and applies it to all their clients. For a good CA firm reputation is bigger than making money dishonestly.
Unfortunately, most CA think,, trading means Trading Goods & Finished Products.
Have no idea about Derivative Trading...PE, CE ??
wo kaisa product, jo har mahina expire ho jata hai? :lol:
Good CA firms don't apply different styles, they find out the best process and applies it to all their clients. For a good CA firm reputation is bigger than making money dishonestly.
Unfortunately, most CA think,, trading means Trading Goods & Finished Products.
Have no idea about Derivative Trading...PE, CE ??
wo kaisa product, jo har mahina expire ho jata hai? :lol:
Just think about the % of Indian population who are engaged in derivative trading in comparison to other TradingNo of Income tax cases / Audit cases related to other trading come to CAs much more than Derivative trading cases.More over Govt. enacted Sec 44 AD specially for retail trading , after that got good response and extended that to other business also. Frankly speaking Department itself is also not clear about derivative trading CE. PE etc otherwise they would have come with a definition of Turnover for future and option trading or would have clearly stated to follow the definition given by ICAI. But they remains silent , then where is the fault of TAXPAYERS / CAs / Inome tax practitioners
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It is not their fault, my friend... Just think about the % of Indian population who are engaged in derivative trading in comparison to other Trading
No of Income tax cases / Audit cases related to other trading come to CAs much more than Derivative trading cases.More over Govt. enacted Sec 44 AD specially for retail trading , after that got good response and extended that to other business also. Frankly speaking Department itself is also not clear about derivative trading CE. PE etc otherwise they should have come with a definition of Turnover for future and option trading or should have clearly stated to follow the definition given by ICAI. But they remains silent , then where is the fault of TAXPAYERS / CAs / Inome tax practitioners
Just think about the % of Indian population who are engaged in derivative trading in comparison to other TradingNo of Income tax cases / Audit cases related to other trading come to CAs much more than Derivative trading cases.More over Govt. enacted Sec 44 AD specially for retail trading , after that got good response and extended that to other business also. Frankly speaking Department itself is also not clear about derivative trading CE. PE etc otherwise they should have come with a definition of Turnover for future and option trading or should have clearly stated to follow the definition given by ICAI. But they remains silent , then where is the fault of TAXPAYERS / CAs / Inome tax practitioners
Ha..ha..ha... good question , my frnd..go for 8% profit on turnover irrespective of ur actual profit / loss and live in peace.If however the turnover is huge and actual profit is small or actual is loss then should prefer for Audit rather than 8 % clause.
I personally prefer sec 44 AD i.e showing profit @ 8% rather than to do Audit.In case of Audit if you any how failed to convince Auditor and he issued report with any kind of adverse comment , the assessee will be in trouble.The asseessee paying 15000/- to 20000/- as Audit fees does not mean that the Auditor will always issue a good report.
Though For Derivative business chances of issuing Adverse report is very less because more or less all transactions are through Bank still the possibility of issuing Adverse report solely depends on the understanding and view of the Auditor and any adverse report from Auditor invariably invite scrutiny case from IT department. So until and unless it is a legal compulsion I always prefer to stay away from Audit / maintenance of books of Accounts etc . .It is just my personal view ...
If however the turnover is huge and actual profit is small or actual is loss then should prefer for Audit rather than 8 % clause.I personally prefer sec 44 AD i.e showing profit @ 8% rather than to do Audit.In case of Audit if you any how failed to convince Auditor and he issued report with any kind of adverse comment , the assessee will be in trouble.The asseessee paying 15000/- to 20000/- as Audit fees does not mean that the Auditor will always issue a good report.
Though For Derivative business chances of issuing Adverse report is very less because more or less all transactions are through Bank still the possibility of issuing Adverse report solely depends on the understanding and view of the Auditor and any adverse report from Auditor invariably invite scrutiny case from IT department. So until and unless it is a legal compulsion I always prefer to stay away from Audit / maintenance of books of Accounts etc . .It is just my personal view ...
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Ha..ha..ha... good question , my frnd..go for 8% profit on turnover irrespective of ur actual profit / loss and live in peace.If however the turnover is huge and actual profit is small or actual is loss then should prefer for Audit rather than 8 % clause.
I personally prefer sec 44 AD i.e showing profit @ 8% rather than to do Audit.In case of Audit if you any how failed to convince Auditor and he issued report with any kind of adverse comment , the assessee will be in trouble.The asseessee paying 15000/- to 20000/- as Audit fees does not mean that the Auditor will always issue a good report.
Though For Derivative business chances of issuing Adverse report is very less because more or less all transactions are through Bank still the possibility of issuing Adverse report solely depends on the understanding and view of the Auditor and any adverse report from Auditor invariably invite scrutiny case from IT department. So until and unless it is a legal compulsion I always prefer to stay away from Audit / maintenance of books of Accounts etc . .It is just my personal view ...
If however the turnover is huge and actual profit is small or actual is loss then should prefer for Audit rather than 8 % clause.I personally prefer sec 44 AD i.e showing profit @ 8% rather than to do Audit.In case of Audit if you any how failed to convince Auditor and he issued report with any kind of adverse comment , the assessee will be in trouble.The asseessee paying 15000/- to 20000/- as Audit fees does not mean that the Auditor will always issue a good report.
Though For Derivative business chances of issuing Adverse report is very less because more or less all transactions are through Bank still the possibility of issuing Adverse report solely depends on the understanding and view of the Auditor and any adverse report from Auditor invariably invite scrutiny case from IT department. So until and unless it is a legal compulsion I always prefer to stay away from Audit / maintenance of books of Accounts etc . .It is just my personal view ...
den he'd jst dclare 8% of 10L=80k,so no tax,no audit for him.
isnt it an illegal practice?how IT will knw dat d guy made 4L?
No it's not an ILLEGAL practice, the requirement of sec 44 AD is to show MINIMUM 8 % profit on turn over, you can show 80000/- profit , even if u made 4 lac profit , similarly in case of 4 lac loss ,u have to show 80000/- profit if u want to submit return u/sec 44AD ( to avoid audit / books of accounts etc).
, similarly in case of 4 lac loss ,u have to show 80000/- profit if u want to submit return u/sec 44AD ( to avoid audit / books of accounts etc).Similar threads
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