10 July 2013
Sir, The total work carried out by a Developer is Rs.1.13 crores during the FY 2012-13 but sales made during the year is only Rs.52 Lakhs. Whether tax audit u/s 44AB is applicable to the firm? An early response is awaited.
10 July 2013
In the statement issued by ICAI on the companies (Auditors’ Report) Order 2003 the word ‘turnover’ has been defined as under- “The term ‘turnover’ for the purposes of this clause may be interpreted to mean the aggregate amount for which sales are effected or services rendered by an enterprises” Therefore in my opinion the developer will be required to get its Books of Accounts audited
Querist :
Anonymous
Querist :
Anonymous
(Querist)
17 July 2013
Thank you for your reply Sir. If the Gross sales value of Flats is Rs.52 Lakhs, but the total expenditure incurred for building the appt. is Rs. 1.13 crores, then also is tax audit applicable? Does total expenditure incurred on building mean the total services rendered?
CAclubindia
