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Audit of a company earning professional income

Others 1586 views 16 replies

Dear Friends,

What is the tax audit limit u/s 44AB of a Company earning Professional Income??

15 lacs or 60 lacs??

Replies (16)

Learner ji,

 

The limit is Rs.60 Lacs and above.

But Sir, as per sec 44AB if a person earning professional income whose turnover exceeds 15 lacs is liable to tax audit.

Pls clarify???

 

 

Learner ji,

Company providing professional services is a service provider. Main objective (business) of such company is to earn professional income. So, receipts by the company for providing such services will be considered as “sales.” (Direct Income)

 

Therefore, The limit of Rs.60 lakhs will be applicable.

Dear Sir,

Can u pls provide a case law to suppport ur answer.

 

 

Learner ji,

Please visit this and go to search and type  “Mahendra  Jain

https://sivanesh.com/?p=115&cpage=1#comment-847

the example of BPO is given,

please refer to that.

 

Dear Sir,

Thank you for ur reply but i cant still digest the answer.

Can u pls provide a strong proof like a case law to suppport ur answer.

Thnx

 

COMPANY CANNOT BE A PROFESSIONAL.THEN COMPANY CANNOT PROVIDE PROFESSIONAL SERVICESS

For a company,  provision of prof. services is business income and not professional income. So the limit for tax audit u/s 44AB for Companies is 60 lakhs not 15 lakhs


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