Tax Audit
This query is : Resolved
10 September 2009
my clien has business of Mobile Recharge
He purchase talk time from telecom company & sale to retailer in turn he receive some % of free talk time as commission.This type of talktime purchase & sale cross 40 lacks but sale of free talktime offered by telecom company does not cross even 2 lakhs.
Moreover telecom company does not deduct any TDS on free talk time given.
my query is wether he is liable to have his books of account audited u/s 44AB of Income Tax Act.
Is Mobile recharg talk time sale or his commission( free talktime) considered as turnover for tax audit ?purpose.
He purchase talk time from telecom company & sale to retailer in turn he receive some % of free talk time as commission.This type of talktime purchase & sale cross 40 lacks but sale of free talktime offered by telecom company does not cross even 2 lakhs.
Moreover telecom company does not deduct any TDS on free talk time given.
my query is wether he is liable to have his books of account audited u/s 44AB of Income Tax Act.
Is Mobile recharg talk time sale or his commission( free talktime) considered as turnover for tax audit ?purpose.
10 September 2009
first u have to consider that the purchase of talk time and sell of talk time takes place in his account or he mere gets commission on the same..if purchase and sale are not accounted for in books, than he is not liable to get his books of accounts audited.
Ratan Sharma
(Expert)
11 September 2009
Only commission income is to be considered for audit u/s. 44AB. Sale or purchase of talktime is to be ignored.
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