Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2015 One Govt Company set up for purchase medicine on behalf of Govt and distribute the medicine to the govt hospital and the company gets commission on purchase.
But in 1st year it is not doing any purchase rather it kept the fund as FD and earned around 1.85 crores as interest.

whether its subject to Tax Audit.

B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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19 June 2015 Hi, the guidance note issued by ICAI states that interest income will not form part of turnover if it is not in regular course of the business. In this case since earning commission is the ordinary course of business, in my opinion Tax audit u/s 44 AB is not applicable.

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