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?
Menu
Tax audit applicability
Replies (16)
NOT APPLICABLE...
Tax audit applies when gross receipts is over sixty lacs.
| 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.
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....
Profession is 25 lacs
Business more than 100 lacs
Hence previous ans is correct
Sec 28 of IT Act : Business : Turnover 1C and Profession : 25 Lacks
U need to analys ur question whether it purely falls under profession or business and decide accordingly
Company main business providing service , applicable Finance Act 1994(service Tax ) liable to service Tax and Profession include Vocation
so , company cover tax audit
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.
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.
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
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?
The company is doing business and not profession. Tax audit will not be applicable
Tax audit applicable for:
Business:Total Turnover/ Sales of the PY exceeds Rs. 1 Crore(w.e.f. 1st april, 2012)
Professional services: Gross receipts of the PY exceeds Rs.25 Lakhs (w.e.f. 1st april, 2012)
Recent Topics :
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
Related Topics :
CAclubindia
