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Audit applicability

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Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 sir, a builder /developer taking adv frm custumers, if its booking deposits, is around 71 lakhs, for f.y. 2012-13 and expenses and purchases is around 1cr. is he liable for audit? is there any clause reg applicability of tax audit if expenses for the f.y. 2012-13 is 1cr and abv.please reply me.
thank u

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 August 2013 Turnover has to be arrived and booked according to AS-7 (Accounting for construction contracts). If such turnover exceeds Rs. 1 crore 44AB applies. However, if such turnover is Rs.1 crore or less and profit is less than 8% then also tax audit provisions attracts.
There is no provision to determine tax audit on the basis of purchase turnover.

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