A Company has no Operating revenue in current year, but it has interest on FD,Dividend more than limit (say more than 1 crore), Then tax audit is applicable?
A Company has no Operating revenue in current year, but it has interest on FD,Dividend more than limit (say more than 1 crore), Then tax audit is applicable?
TAX AUDIT APPLICABILITY SAYS WITH TURNOVER
ASSUMING TURNOVER NOT EXCEEDS 1 CRORE,
TAX AUDIT NOT APPLICABLE EVEN IF THE INTEREST RECEIPT IS 1CRORE
| Originally posted by : Rajan Sadani | ||
 |
A Company has no Operating revenue in current year, but it has interest on FD,Dividend more than limit (say more than 1 crore), Then tax audit is applicable? |
 |
As per Clause 5.13 (iv) and (v) of the Guidance Note on Tax Audit issued by ICAI, the following items would not form part of "gross receipts/turnover in business" for purposes of section 44AB.
> Dividends on shares except in the case of an assessee dealing in shares;
> Income by way of interest unless assessable as business income
.
Hence, in your case tax audit is not applicable unless the abovesaid incomes are assessed as business income.
PLEASE GO TO THIS LINK
IT IS VERY USEFUL
REGARDING ICAI BANGALORE-CONDUCTED CLASSES-HOW TO DOWNLOAD
/forum/icai-bangalore-helps-very-much-238249.asp#.URTsxKWQ1Vo
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
CAclubindia
