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Applicability of Tax Audit u/s 44AB

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Sachin B. Gupta

Service

45 Points Posted on 14 June 2010

Hi,

Turnover for the applicability of tax audit for the business is whether inclusive of Service tax figure or net of service tax.

(for A.Y. 2010-2011)

Eg. Fees Received for the year Rs. 39,00,0000

Service Tax on the above Rs. 4,01,700

Aggregate Fees received Rs. 43,01,700/-

If anybody can help me in this matter, plaese do the needful.

Thanks,

Sachin Gupta

Replies (3)

Ashish

166 Points Posted on 14 June 2010

Turnover should be Gross Turnover for purpose of Sec 44AB.

Therefore, Tax audit should be applicable.

CA KHAN AURANGZAIB

ERP FINANCIAL CONSULTANT

85 Points Posted on 14 June 2010

It depends upon the treatment of sales invoices u are doing in ur books.If u r regularly crediting the Sales Tax in Separate Account, bill wose then Turnover will be excluding of Sales Tax, but if you are not transferring Sales Tax in a separate Account, then it would be taken by including Sales Tax.You may also refer the guidance note on Tax Audit U/s 44AB issued by ICAI.However, for saferside or to avoid the litigations, it is advisable to include the Sale tax in both the cases.