Gross receipts 15 lacs will be subjected to audit
This query is : Resolved
Guest
Guest
(Querist)
25 May 2012
As per IT Norms, why is there a separate Policy for Traders and Manufacturers on one hand and the Service Providers on the other hand.
As per IT Norms, Any business with Gross receipts of More than 15 lacs will be subject to Audit of financials where as any business with gross sales turnover greater than 60 lacs will be subject to Audit of financials.
Why not Rs. 60 Lacs for Gross Receipts also?
As per IT Norms, Any business with Gross receipts of More than 15 lacs will be subject to Audit of financials where as any business with gross sales turnover greater than 60 lacs will be subject to Audit of financials.
Why not Rs. 60 Lacs for Gross Receipts also?
CA PARAS BAFNA
(Expert)
25 May 2012
Rs 15.00 Lac limit is applicable in connection with gross receipts from a profession.
.
An insurance agent, or a commission agent is though providing services , yet he is not
treated as professional. Limit of 60.00 lac applies to them.
.
The basic reason for 2 different limits
lies in the fact that, a professional has to incur nominal direct costs to earn the income. whereas a trader /manufacturer has to incur direct costs like purchases of goods etc. He is having a very low margin in compare to Professionals.
.
.
An insurance agent, or a commission agent is though providing services , yet he is not
treated as professional. Limit of 60.00 lac applies to them.
.
The basic reason for 2 different limits
lies in the fact that, a professional has to incur nominal direct costs to earn the income. whereas a trader /manufacturer has to incur direct costs like purchases of goods etc. He is having a very low margin in compare to Professionals.
.
Soumitra Basu
(Expert)
26 May 2012
Correct answer
Guest
Guest
(Querist)
28 May 2012
Thank You, Mr. Paras. It was a clear explanation with a easy comprehension. Thanks.
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
- Gst credit note by supplier
- Missed uploading GST Invoice
- Query on effect of registration of property
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Additional trade name
- Visiting card purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
