Is tax audit compulsory

Assuming assesee to be individual, If during AY 15-16, gross receipts also does not exceed 1 crore, then no need of tax audit, in which case no need to deduction of TDS.

But if s/he is declaring income on presumptive basis (44AD), then if actual income going to be declared is less than the prescribed limit (8%), s/he is required to get books  audited u/s 44AB and also liable for deduction/payment of TDS.

Yes Assessee is an Individual, and having an inomce Rs.9000000.00 and Net profit -300000.00 

But the important thing is he has collected service tax on above amount and not paid a single penny, which will be treated as profit.

in this condition how do you treat those payment which he made to sub-contractors. without deducting  TDS.

what do u suggest........

Regards

Renu

Not only income even gross receipts should not exceed 1 crore. If so, no tax audit and no tds deduction required

Hi

Since for FY 13-14, he is under Tax audit - he is liable to deduct TDS on payments in FY 14-15. If not deducted 30% of payments will be treated as taxable income..

For FY 14-15, if gross receipts (including Service tax) exceeds 1 crore, mandatory tax audit....if its less than 1 crore and he wants to declare taxable income of less than 8 lacs, then also tax audit is mandatory

Originally posted by : Poornima Madhava
	Assuming assesee to be individual, If during AY 15-16, gross receipts also does not exceed 1 crore, then no need of tax audit, in which case no need to deduction of TDS. But if s/he is declaring income on presumptive basis (44AD), then if actual income going to be declared is less than the prescribed limit (8%), s/he is required to get books  audited u/s 44AB and also liable for deduction/payment of TDS.

Dear Poornima,

Please note that if a person is liable for an audit under section 44AB(d) ie because of application of 44AD(5), then TDS regulations dont apply to him. 

TDS is specifically applicable only in cases where the turnover exceeds the limit provided under clause (a) or (b) of the section 44AB

@ Mr. Gnanashekar

Taxable income is computed irrespective of whether you are under tax audit or not...based on my prev reply...disalloance as well as liability to deduct TDS is attracted....Pls specify where is it mentioned when thre is no tax audit no disallowance is attracted..