If a Private Ltd. Company is into rendering of professional services, then for the purposes of Sec. 44 AB (Tax Audit Applicability), will the activity be considered as business or profession? Please note that the Company is having turnover of Rs. 51 Lakhs. So, Tax Audit Applicability will depend on the activity, whether it is business or profession.
Thanks in advance!!!
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Company providing professional services : Whether Business or Profession?
Replies (5)
It's. profession sir
What is the exact service...?
The Company provides Consultancy Services to Oil Refineries.
1. If the private limited company is engaged in providing services then it is required to carry out tax audit under sec 44AB if the T.O or gross receipts exceeds Rs. 50 lakhs during the year.
2. In your case since the T.O is Rs. 51 lakhs tax audit u/s 44AB is mandatory.
Please correct me if the above solution has an alternative view.
In case of professional services, limit is 50 lakhs hence tax audit is mandatory
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