Hi Every one, This is Prakash
You people aware that all companies recruiting some employees on contract basis and Giving TDS Statement in Form 16A mentioning its a consultancy service or something.
Say it is a software company, giving form 16A for a Contract Employee nd the amount paid was Rs.15,00,000 with Tax deducted on it
Now tell me whether he needs to get his Accounts audited U/s 44AB since the amount exceeds 10 lacs????
Section 44AA reads as
Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession.
So i think you will fall under technical consultancy and hence the case will of profession and hence it is liable for audit u/s 44AB as receipts exceed Rs. 10 lakhs.
Also service tax in addition to the above is also chargeable as receipts exceed Rs. 10 lakhs for service tax purpose also.
agree with Aditya.....
but limit of Tax Audit has been increased to Rs. 15 Lakh from 01.04.2010 onwards........
For Previous years earning, it was Rs. 10 Lakhs.......
Thanks for posting your opinions
CAclubindia
