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
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
