Tax Audit doubt!!
This query is : Resolved
30 August 2010
Dear Experts,
Very urgent sir!!
There is a partnership firm which does business, the turnover such partnership firm is more than Rs. 40 lakhs. This partnership is carried on by another sole proprietor firm which also has turnover over Rs. 40 lakhs. In such a case should we not do tax audit separately for each business?
Please provide me the section or case law based on which i can put my point in the office.
With regards,
Rajesh.
Very urgent sir!!
There is a partnership firm which does business, the turnover such partnership firm is more than Rs. 40 lakhs. This partnership is carried on by another sole proprietor firm which also has turnover over Rs. 40 lakhs. In such a case should we not do tax audit separately for each business?
Please provide me the section or case law based on which i can put my point in the office.
With regards,
Rajesh.
31 August 2010
Are there two entities or one or there is only one PAN? The answer will depend upon this. If different name then different tax audit.
31 August 2010
What is aditya said is right, but it will decide in the assement, the may treat as on entity & make assessment.
01 September 2010
Dear Experts,
This is to Mr. Aditya ji!!!
They have only one PAN but have 2 business one is called Head Office and the other one is called Branch Office. In such a case do we have to give 2 tax audit reports?
This is to Mr. Aditya ji!!!
They have only one PAN but have 2 business one is called Head Office and the other one is called Branch Office. In such a case do we have to give 2 tax audit reports?
01 September 2010
Yes generally two audits are done in such a case if there are seperate independent branch.
02 September 2010
Sec. 44AB provides for the compulsory audit of Accounts by a Chartered Accountant in the following cases :
(1) In case a person carries on the business ,if the total sales, turnover or gross receipts in business for the previous year(s) relevant to the assessment year exceed Rs. 40 lac.
(2) If his gross receipts in profession for the previous year(s) relevant to the assessment year exceeds Rs. 10 lacs.
Unlike, the Excise Law, wherein from the registration to the maintenance of books ,records and Audit by the Excise Audit , wing , the Income Tax Act is a Central Act and the Income Tax return is to be filed consolidated as a whole and not unitwise unless the Business carries on a Unit wherein for claiming exemption under different provisions of the Act, the separate Accounts are prescribed and a separate report from CA is to be obtained.
In the case cited above, there is nothing like this and hence only one consolidated IT return and Tax Audit Report suffice.
(1) In case a person carries on the business ,if the total sales, turnover or gross receipts in business for the previous year(s) relevant to the assessment year exceed Rs. 40 lac.
(2) If his gross receipts in profession for the previous year(s) relevant to the assessment year exceeds Rs. 10 lacs.
Unlike, the Excise Law, wherein from the registration to the maintenance of books ,records and Audit by the Excise Audit , wing , the Income Tax Act is a Central Act and the Income Tax return is to be filed consolidated as a whole and not unitwise unless the Business carries on a Unit wherein for claiming exemption under different provisions of the Act, the separate Accounts are prescribed and a separate report from CA is to be obtained.
In the case cited above, there is nothing like this and hence only one consolidated IT return and Tax Audit Report suffice.
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