Applicability of tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2016 Dear Experts,
I am contractor of havells to repair its product which is under warranty period, in AY 2016-17 my sales portion is 3345689/- and service portion is 3867878/- please let me know weather tax audit will be applicable or not however Net profit is also above 8%

Thanks & Regard
Karan Aahuja

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2016 tax audit is NOT applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2016 Dear sir,
i agree with you but my CA has said since your service portion is exceed 25 lacs hence your books will be audited

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2016 The limit for PROFESSION is 25 lakh.....not for business. You are doing the repairs under warranty.....
Every service provider is NOT profession.
Please ask your person to clarify the issue with you

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2016 Sir, i have ask to my CA he said you are
Registered under service industry all
the service industry comes with the purview
Of 25 Lakh Not 1 CR hence your books
Is to be audited,
Is it correct,

Amol S Joglekar

Amol S Joglekar (Expert)
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04 October 2016 No. That is not correct view.
All "professionals" may NOT be "SERVICE provider" under Service Tax.......
Similarly
All "Service Providers" may NOT come under "PROFESSIONAL" under Income Tax Act.
Payment of Service Tax and /or Registration under Service Tax is NOT confirmatory test to consider the same as PROFESSIONAL under Income Tax Act.

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