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Tax audit applicability

Abhay Mundra (CA, CS) (75 Points)

09 December 2013

I have a query:-

A company is providing engineering services and having a service revenue of Rs. 30 lakhs in FY 2012 - 13. Whether the company is liable for Tax Audit u/s 44AB of The IT Act?

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16 Replies

pallav (still a learner....) (938 Points)
Replied 09 December 2013

NOT APPLICABLE...

Ankit Chavhan (job) (24 Points)
Replied 09 December 2013

Tax audit applies when gross receipts is over sixty lacs.

Deepak Gupta (CA Student) (15922 Points)
Replied 09 December 2013

Originally posted by : Abhay Mundra
	I have a query:- A company is providing engineering services and having a service revenue of Rs. 30 lakhs in FY 2012 - 13. Whether the company is liable for Tax Audit u/s 44AB of The IT Act?

I think tax audit shall be applicable because engineering is included in the list of specified professions and gross receipts are exceeding the prescribed limit of Rs. 25 lakhs w.e.f A.Y. 2013-14.

pooja more (student) (21 Points)
Replied 09 December 2013

U/s 44 ab of income tax act , a company who has a total income that is gross receipt 25 lacs or then it is liable for tax audit....

aarav (student) (26 Points)
Replied 09 December 2013

Profession is 25 lacs Business more than 100 lacs Hence previous ans is correct

sai nithu (student) (26 Points)
Replied 09 December 2013

Sec 28 of IT Act : Business : Turnover 1C and Profession : 25 Lacks

Amit khandelwal (students) (26 Points)
Replied 09 December 2013

U need to analys ur question whether it purely falls under profession or business and decide accordingly

sai nithu (student) (26 Points)
Replied 09 December 2013

Company main business providing service , applicable Finance Act 1994(service Tax ) liable to service Tax and Profession include Vocation so , company cover tax audit

saurabh sharma (article) (56 Points)
Replied 10 December 2013

I agree with the answer of Mr. Amit Khandelwal. Its nt tuff to decide whether co. Is covered in tax audit or not. If u clarify the position where it falls.

SHANKAR DAYAL TIWARI (INCOME TAX INSPECTOR) (22 Points)
Replied 10 December 2013

Isn't it so that company itself is only doing business of providing tech. services and the teachers working under company are providing their business skills? In such circumstances company's receipt are due to the business run by the company becoz company itself is not skilled. So the limit for company should be one crore.

Vimal Kishor Singh (Service) (78 Points)
Replied 10 December 2013

As per my view it is a company & if turnover above 60 Lac, then tax audit will be applicable. Mere providing professional service would not convert company as professional service provider. It is a company under act 1956

Mukesh Babu (IPCC Student) (236 Points)
Replied 10 December 2013

Since Engineering Services will come under profession under Income Tac Act, 1961 & the turnover exceeds the limit of Rs.25 lakhs(u/s 44AB) the company will liable to Tax Audit?