Section 44ab of it act 1961

CA.AZAD JAIN (CA) (201 Points)

17 August 2015

Is service tax a part of Total Sales/ Turnover / Gross Receipts for the purpose of Section 44ab ?

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3 Replies

Srividya Murali (Article Assisstant) (211 Points)
Replied 17 August 2015

No. Service tax is not a part of turnover / gross receipts..

Z ( ) (2960 Points)
Replied 17 August 2015

Refer to guidance note on tax audit

[2014 Edition]

Yash (Student CS) (32 Points)
Replied 21 August 2015

Audit of accounts is compulsory
- In case of Business: – If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year
- In case of Profession: – If Gross Receipts exceeds Rs 25 Lakh in any previous Year
- Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to audit of accounts if they claim that their profit will be less than limit specified in respective section. e.g. u/s 44 AD Audit of accounts is required when two conditions are satisfied:-
  1. Claim lower profit than limit specified u/s 44AD (Limit of 8%)
  2. Total Income exceed basic exemption limit.
For calculation of turnover u/s 44AB, the turnover u/s 44AD/44AE shall be excluded.
Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up.
Audit Date:-
- Normally 30th September.
- In case, if assessee has International transactions, 30th November.
Audit Report Form:- 3CA if audit required under any other law
3CB if not covered above means covered under Income Tax.
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