Whether tax audit is require?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2011 respected sir,
one of my client having dsc from finance company says tata finacial service and gatting the commission aftr deducting TDS us 194H which is nore than the 15 lacs during the year, whether the tax audit is rewuire thought the profit is shown more than the 8% in that case????? or other wise
??

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 August 2011 It depends on his billing. If he is billing and accounting it by debiting the client and payment is received by him then it is covered in his turnover otherwise not and under the situation No. 2 he is not liable for Tax Audit.

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2011 supose it count in t/o which will be 60 lacs or 15 lacs as aaplicable to professional. i thing the client is not having so much skilled only that he is doing business of that DSC and getting commission. so which limit will be applicable in case of audit is require.??????

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 August 2011 Ask your client to bill for commission only to the DSC supplier. In my opinion the DSC supplier do not want to take this botheration as he sells in whole sale and the retailer charges according to his rates.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 August 2011 DSC agency may be considered as 'business'. Therefore, Rs. 60/- lakhs can be considered as turnover for the purpose of tax audit under section 44AB of the Income tax Act,1961.
But section 44AD also has to be looked into. If the turn over is less than Rs. 60/- lakhs and the income offered is less than 8% of the turnover, then also 44AB audit is required as per section 44AD(5) of the said act.

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