TAX AUDIT

Others 1376 views 14 replies

Please let me know whether Tax audit is applicable if the Sales Turnover is Rs.35 lakhs and the purchase turnover is Rs. 45 lakhs.

Replies (14)

TAX AUDIT IS NOT ATTRACTED.  IF SALES TURNOVER EXCEEDS Rs 40 LACS THEN TAX AUDIT IS MUST. FURTHER PURCHASE TURNOVER IS NOT RELEVENT FOR TAX AUDIT APPLICABILITY.

I agree with Mr. manoj

Tax audit will not be attracted.  If sales turnover exceeds Rs 60 lacs then tax audit is must. Earlier the threshold limit was Rs. 40 lacs.

Originally posted by : Þräßéêr

Tax audit will not be attracted.  If sales turnover exceeds Rs 60 lacs then tax audit is must. Earlier the threshold limit was Rs. 40 lacs.

 SORRY BROTHER IF I M NOT WRONG THEN 60LACS IS APPLICABLE FROM FY 2010-11 AND NOT FOR  AY 2010-11.

YES TAX AUDIT HAS TO BE ATTRACTED. BECAUSE PURCHASE WORDS  IS ALSO INCLUDED IN THE DEFINITION OF TURNOVER IN THE INCOME TAX ACT.

I agree with Mr. manoj

are you sure mr.darshan.since i didnt know it please clarify with section no.

Not at all as per the provisions of the sec. 44AB of the Income Tax Act, 1961.

Ok...

no

 Do not support this view but there is a case law for tax audit on purchase.

Purchases will be treated as turnover

The Lordship Mrs.Sujata v. Manohar and D.P.Wadhwa J.J dismissed the special leave petition filed by the Department against the judgment dated 27/03/1996 of the Bombay High Court in ITA No. 924 of 1995, whereby the High Court rejected the reference application of the Department on the question whether the Tribunal was right in holding that the return filed by the assessee on 30th October, 1991, for the A.Y. 1991-92 was in time as it was under obligation to get its accounts audited in view of its purchases being in excess of Rs.40 lakhs and turnover connoted Sales or Purchases?[Chief CIT v. Vijay Maheshwari HUF C.C. No. 7819 of 1997 (228 ITR 157 (SC))].

I AGREE WITH PRABEER

Originally posted by : Manoj Tilokani

TAX AUDIT IS NOT ATTRACTED.  IF SALES TURNOVER EXCEEDS Rs 40 LACS THEN TAX AUDIT IS MUST. FURTHER PURCHASE TURNOVER IS NOT RELEVENT FOR TAX AUDIT APPLICABILITY.

Agreed....

According  to me purchase turnover is irrelevent and 60lacs is applicable from FY 2010-11

Yes Tax Audit is compulsory if purchase exceeds 40L...........

Dear Shashank,

     In your query  your turnover is not exceeding 40 lakhs as per section 44AB, hence tax audit would not applicable. As far as concern about purchases, section 44AB does not say anytihng 


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