Purchases exceed 40.00 Lacs but sales doen nt

This query is : Resolved

Naveen Jain (Querist)
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12 July 2008 Sir,
If purchases net of VAT exceed 40.00 Lacs and sales net of VAT does not exceed , then in that case whether Tax Audit is compulsory or not?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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12 July 2008 Not compulsory

Naveen Jain

Naveen Jain (Querist)
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12 July 2008 Sir,
If purchases net of VAT exceed 40.00 Lacs and sales net of VAT does not exceed , then in that case whether Tax Audit is compulsory or not?

Rupert

Rupert (Expert)
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12 July 2008 No - The condition is only on Sales and not on purchases.

What is considered for whether audit is applicable or not is Turnover, Total Sales or Gross Receipts.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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12 July 2008 Turnover for tax audit purpose includes VAT. If the TO inclusive of VAT exceeds 40L, tax audit is applicable.