Tax Audit for Professional Receipt

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pradeep (Querist)
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10 October 2009 I Just a B.com graduate and I am redering some professional Services & Some other Services ( Data Entry Services )& Sowrcing manpoer.

TDS deducted on professional income of Rs 8,000,000 of u/s 194 J & on other services on total amount of Rs 7,00,000 under some other sectione.
Would I be liable for Tax Audit.
If Yes the under which provision. Tax audit date has also passed. Advice what to do

CA. Vinod Pandey

CA. Vinod Pandey (Expert)
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10 October 2009 Dear Pradeep,

In my opinion, to be called professional, one need to have professional qualification.

It's clear that TDS is being deducted under 194J towards service provided by you. but it only will not amount to charge you as professional. For example, a technical qualified person providing AMC services to various clients and payment is received after deducting TDS on Professional but due to this he/she can not be considered professional.

SO, you will not be covered under 44AB and in said section professional service has been defined.

Ratan Sharma

Ratan Sharma (Expert)
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10 October 2009 Agree with Mr. Vinod.

pradeep

pradeep (Querist)
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10 October 2009 But I am receiving the Professional Income of Rs 8,00,000 and TDS is deduted under right nomencleture. My point is , in the same firm name & same bank account if i am getting professional income as well as other income then to check tax audit applicability should i bifurcate both income. It will be great help if you can mention any case law regarding the same

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 October 2009 First of all check whether your activity comes under profession for the limited purpose of tax audit under section 44AB of The income Tax Act,1961.
Reference is invited to section 2(26) of the said act and to the following citation.

CIT Vs. Ram Kripal Tripathi (1980) 125 ITR 408 (All).

Moreover CBDT Notifications No. SO -17 (E) dated 12/01/1977 and No SO 2675 dated 25/09/1992 had been listed the following activities as Profession.
1)Accountancy
2) Architectural
3)Authorised representative
4)Company secretary
5) Engineering
6) Film artists/actors,cameraman director etc
7)Interior decoration
8)Legal
9) Medicinal
10)Techincal consultancy.
Request to go through the above and decide accordingly.

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