Sec 44ab
This query is : Resolved
26 June 2012
If a company has not decleared their commercial production till 31/03/2012 and before this date they had trial run and the production from the trial run was sold. total sales from the trial production was 9 crore. whether the comapny have to get their account audited u/s. 44AB or not?
26 June 2012
Dear Friend,
Section 44AB reads
Every person carrying on business shall,
if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 60 lakh rupees in any previous year liable to tax audit.
It is immaterial whether the sale is out of Trial Run or not as per the provisions of the law. Hence the Company is liable to tax audit.
Section 44AB reads
Every person carrying on business shall,
if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 60 lakh rupees in any previous year liable to tax audit.
It is immaterial whether the sale is out of Trial Run or not as per the provisions of the law. Hence the Company is liable to tax audit.
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