Tax audit applicable or not

Refer Sec 44AB it uses d words GROSS TURNOVER or GROSS RECIEPTS and doesnt speak abt purchases.

IT IS STRICTLY APPLICABLE ON THE AMOUNT OF TURNOVER(SALE). NOT ON PURCHASE

in ur case. TAX audit is not applicable. see only sales when looking for the turnover.

inapplicable..........

Tax Audit is not Applicable in this Case.......

Not applicabe at all ! Agree with all !

yes it is applicable

not applicable us 44AB but applicable if new profit shows less than 8% of total turnover.

IT IS STRICTLY APPLICABLE ON THE AMOUNT OF TURNOVER(SALE). NOT ON PURCHASE

this is a very interesting question. i beg to differ with everyone above

turnover includes sales and all taxable purchase

the definition gross turnover u/s 2(23) is in two fold aspect:

Clause (i) covers Gross turnover for the purposes of levy of sales tax which is the entire amount of sales during the year. Clause (ii) covers Gross turnover for the purposes of levy of purchase tax which will include all purchases during the year. Now a question may arise what would constitute Gross Turnover for the purpose of ascertaining liability for audit.

Purchase tax is payable only in respect of certain purchase under section 12. The act, unlike in the case of Sales turnover, does not provide any deductions from Gross Turnover of purchase to arrive at taxable purchases.

 It is therefore logical to conclude that the expression all purchases of goods means all purchases of goods on which purchase tax is leviable. Going by this interpretation of this term, Gross turnover for the purposes of Section 62 would be an aggregate of turnovers of all Sales and of Taxable Purchases.

For AY 2011-12, tax audit u/s 44AB is applicable for turnover exceeding Rs.60 Lacs, not Rs.40 Lacs.

So, tax audit is not applicable in this case.

Audit Applicable

Tax Audit is not applicable........