Tushar sukre 10 September 2019
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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Suresh Thiyagarajan (Student) 11 September 2019
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.