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Is Tax Audit Applicable to Cooperative Housing Society?

Stat Audit 3148 views 3 replies

I am auditing one Co-Operative Housing Society. In that collection from Members on account of various heads is exceeding Rs. 60 Lakhs. The Society is also having Income from Other Sources, which is also Rs. 35 Lakhs.

In veiw of this I request you to give the opinion whether Tax Audit is applicable to the Co-Operative Housing Society situated in Thane, Maharashtra State.

Replies (3)

If sales bills are drawn on the members for some supplies then it will constitute as Turnover, sales or Gross Receipts hence liable to tax audit. 

.

Collecting annual fees or other types of fees from members on various heads are not Gross Turnover hence in these cases, it is not liable to tax audit.  

Tax audit is applicable if following condition satisfied.....

Every person,:-

(a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees in any previous year ; or

(b) carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any previous year, or

(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD or section 44AE or section 44AF or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year,

 

Here is your case there is no business hence no tax audit applicable.

 

Regards

Madhusudan

Originally posted by : CA SURENDRA KUMAR RAKHECHA

If sales bills are drawn on the members for some supplies then it will constitute as Turnover, sales or Gross Receipts hence liable to tax audit. 

.

Collecting annual fees or other types of fees from members on various heads are not Gross Turnover hence in these cases, it is not liable to tax audit.  

agreed with surendra sir


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