Turnover limit

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 What is the turnover limit to get audited for an IT company?

Is it 1 Crore?
I'm just confused as IT companies are professionals, and the limit for professionals is 25 Lac.
So, which limit will be applicable on an IT company 25 Lac or 1 Crore?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 October 2013 For Companies 1 Crore for Tax Audit. Statutory Audit compulsory irrespective of any turnover.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 October 2013 As per sec 44AB for companies (incl. the IT company) the limit is Rs 1 Crore.

Ganeshbabu K

Ganeshbabu K (Expert)
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18 October 2013 For Companies doing Professional Activities Turnover limit would be 25 lakhs for Tax audit

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 October 2013 Dear ganeshbabu i think even for companies providing professional services Turnover limit is Rs 1 Crore. Please check.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 October 2013 If the IT companies are selling softwares after developing it from the shelf itself then it means they are not providing services but are doing sale of goods as software sold after development are covered by def of goods and hence as per sec 44AB the turnover limit for tax audit shall be Rs.1 crore.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 October 2013 Company cannot carry on profession.

Citation:- ITO Vs. Ashalok Nursing Home P Ltd [2006] 156 Taxman 86(Man-Tri).

Hence threshold limit is Rs. 1 Crore for tax audit.

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Ganeshbabu K

Ganeshbabu K (Expert)
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18 October 2013 Thank you sir for case study
.
.
SO Even though company engaged in providing professional services we need to consider rs.1 crore for tax audit limit..
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.
Thanks to all

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2013 Thanks all

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