Tax Audit Limit for Practicing Doctors selling Medicines

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Rahul Vora (Querist)

21 October 2009 I would like to know what will be the tax audit limit for doctors who are selling medicines as well. Especially Homeo / Ayurvedic Doctors where sometimes over 50% of receipts can be from sale of medicines. The medicines may have been manufactured by themselves or made on jobwork or may be purchased.

Will the limit be Rs.10 L on gross receipts including sale of medicines or should it be considered seperately as has been given in GN for Tax Audit issued by ICAI.

Also, let me know if there are any circulars/notifications/case laws on the above matter

Thanks & Regards,
Rahul

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)

21 October 2009 Rs.10 L

Sreedhar Atchutuni ACA,GradCWA

Sreedhar Atchutuni ACA,GradCWA (Expert)

21 October 2009 In the case of Aurvedic/Homeo Doctors mentioned by you they have to mention in Form 3CD the nature of each type of service/ business done by them.

Since the intention includes both profession and business seperate books has to be maintained. Since these doctors will be individuals in most cases the limit will be Rs. 40 lakhs for tax audit purpose in my opinion.

CA. Bikash Bogi

CA. Bikash Bogi (Expert)

26 October 2009 Professional receipt & sale of medicine should be considered separately for the purpose of ceiling of tax audit as per guidance note on tax audit.

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