Tax Audit

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Gautam (Querist)
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19 July 2009 Hi

My question is regarding Tax Audit.

Mr A has a propreitorship concern where he is doing commission work for various companies. His total basic commission is less than Rs 40 Lakhs, but if we include service tax, surcharge & edu cess the same is above Rs 40 Lakhs.

Is his firm subject to TAX AUDIT.

Please advise.

Thanks
Gautam

MANISH MITTAL

MANISH MITTAL (Expert)
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19 July 2009 U/s 44 AB express about requirement of tax audit. if a person having turnover/gross receipt 40 lacs and above, his books of accounts have to audited. Turnover/gross receipt includes all taxes essential to provide of it, therefore service tax, surcharge and edu cess should be included for calculation of turnover/gross receipt. further you should assess type of commission work. if commission like adat as charge by grain commission agent, gross turnover is assess considering total sale value of goods instead of commission income. therefore nature of business should be properly examine.

Gautam

Gautam (Querist)
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20 July 2009 Hi,

Have you considered the Guidance Note by ICAI on the same.

Please advise.

Gautam