Section 44AB

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Mehul Lodaria (Querist)
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25 June 2009 -Which limit is to be seen for 44AB for the carpentor who is only doing job works and/or have also thier showroom for furniture?
10,00,000 or 40,00,000

-whether they r professionals?

-Gross receipt and Sales both words are there in both creteria?

- profession includes vocation is also there but no patricular defination is there for profession.

Ratan Sharma

Ratan Sharma (Expert)
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25 June 2009 Hi Mehul,
There are divergent views on your issue. According to my opinion Carpentor being a professional liable for audit if gross receipt exceeds Rs. 10 lacs. If he is also having a show room then the sales has to exceed Rs. 40 lacs for audit. Both the job work & sales can not be clubbed together for calculation of limit u/s. 44AB. if either gross receipt exceeds Rs. 10 lacs or sales exceeds Rs. 40 lacs , only then audit is compulsory. If job charges are Rs. 8.00 lacs and sales from show room are Rs. 35.00 lacs the total is Rs. 43 lacs, but no tax audit is required.

Mehul Lodaria

Mehul Lodaria (Querist)
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25 June 2009 one individual can,t be fall for two creteria
they are not also having any particular deegree so i think they fall under limit of 40lacs
thanks

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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25 June 2009 Carpenter is not a specified professional.
So limit of 40 Lacs will prevaill.

taxindiaconnect

taxindiaconnect (Expert)
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26 June 2009 The right answer is given by Nitin, I do agree with him on this as the profession mentioned in section 44B and 44BBA deos not include carpenter, the limit would be 40 lac for tax audit. Just to clarify to Mehul, one person can fall under two categories.

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