Tax audit

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pounraj (Querist)
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11 April 2014 Tax Audit applicable for business whose turnover exceeds Rs. 1 Cores and profession Gross receipts exceeds Rs.25 lakhs . A person carrying only Job-work is treated Turnover (or) Gross Receipts?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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11 April 2014 First of all i have to give some clarification to you, not only the professionals have gross receipts business holders also have gross receipts for example Contractor/Commission agents comes under business category and his contract/Commission amount shall called as gross receipts not the turnover, only the situation where the transactions involved purchase and sale of goods case then the sales amount we called as turnover. Another example in case a builder who constructs the properties/flats with his own funds and sold it to another then in this case called as turnover because of sale involved.

So to decide section 44AB tax audit liability first you have to decide is the person comes under business category or professional and then decide the tax audit limit prescribed in section 44AB.

In your case JOB-Worker comes under business category and the amounts received by him for doing of job is called as receipt(in case manufacturer paying some amount to do such job, means selling of that goods is not the duty of job-worker) but he comes under Business category thus if his gross receipts exceeds Rs.1 crore then only he liable to tax audit u/s 44AB.

Here receipt means the commission paying by the manufacturer to the job-worker for completion of job as indicated by the manufacturer.

OM SAI SRI SAI JAI JAI SAI

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 October 2021 For Job worker the turnover limit for tax audit is 1 Cr. So in your case, you are required to get audited both the books of account of business as well as profession.

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