Comment on Taxation Simplified

Abhishek,

The first option would be the right one, the second method where you declare profit of 8% would not be true since you are profits are definitely more than 8% of your turnover and this might come back to you in the future. I have advised a few people to show 8% of turnover as profit, but these are all people whose gross profit was less than 8% of the turnover and this was a way to avoid an audit by the CA. If you pay more taxes than what you have to there is never a problem, it is usually when you pay lesser than what is supposed to be paid.

Hope this clarifies, but do consult a CA.

Cheers,

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