Applicability of Tax Audit on Software Consultancy
This query is : Resolved
28 August 2007
A Pvt. Ltd. Company is providing software development consultancy services. During the financial year 06-07, the gross business receipts were around Rs. 24 lacs. Whether company is liable to tax audit u/s. 44AB of the Income Tax Act, 1961? Which limit would be applicable to it for tax audit - Rs. 40.00 lacs or Rs. 10.00 lacs?
Please give urgent reply.
Please give urgent reply.
28 August 2007
A Pvt. Ltd. Company is providing software development consultancy services. During the financial year 06-07, the gross business receipts were around Rs. 24 lacs. Whether company is liable to tax audit u/s. 44AB of the Income Tax Act, 1961? Which limit would be applicable to it for tax audit - Rs. 40.00 lacs or Rs. 10.00 lacs?
Please give urgent reply.
Please give urgent reply.
28 August 2007
the company in this case is NOT liable to tax audit u/s 44AB as the threshold limit is Rs. 40 lakhs. The comapny is not carrying any profession, so Rs. 10 lakhs limit does not apply to it.
31 August 2007
I mentioned that company is rendering consultancy services in development of software and does not involve in any selling activity.
Profession includes Information technology and technical consltancy as defined in I.Tax Act, 1961.
Then why limit of Rs. 10.00 lacs does not become applicable?
Profession includes Information technology and technical consltancy as defined in I.Tax Act, 1961.
Then why limit of Rs. 10.00 lacs does not become applicable?
02 September 2007
Profession involves occupation requiring purely intellectual or manual skill - CIT v. Manmohan Das [1966] 59 ITR 699 (SC).
Software consultancy(& not sale of software) requires pure intectual skills.Therefore is a profession.
Therefore, lilmit of tax audit will be as applicable to professionals
Software consultancy(& not sale of software) requires pure intectual skills.Therefore is a profession.
Therefore, lilmit of tax audit will be as applicable to professionals
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Gst on travel by air for business purposes
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- TDS refund Indemnity Bond
- PF wage ceiling
- Error in uploading Form 10BD
- ITR 44AD SECTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
