which total turnover is more than forty lacs whether it is complusory for me to audit the books?

I am not a C.A., But I know about this. In your case 40 lakhs is not sales or purchases. Your business is speculation, that is you will not take delivery of the deratives. You will only take/pay the difference. In your case, the turnover is the net receipts 40 laksh. In a financial year if you buy deratives worth 10 crores and if the same were sold for 10 crores and 35 lakhs, that is your turnover is only 35 lakhs. Not 10 crores or 10.35 crores.

I am sure about it. You can ask any Income Tax consultant.

Yes it's cumpolsory especially if you are registered under vat. As you have to fill up a form no. 704 which is an audit report generated by a chartered accountant. In Maharshtra the date of filing of form no. 704 is 31st jan 2007 & after filing the 704 form if u wish to revise it the last date is 28th feb 2007,

regards

Milind Patil

Absolutly, when will become turnover(sales or purchase) more than 40 lacs, Audit is complusory.