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Tax audit of Management Consultant

Sandeep Yadav (CA Final ) (67 Points)

18 July 2011

Hi....

I am pursuing accountancy of a Management Consultant which is full time business for them. The turnover of the said Proprietorship firm is about 25 Lac including the Foreign consultanty of8.00 Lac. Would it come under tax audit. If yes, why? Bcaz I think that is business income. And it would not come under tax audit before crossing the turnover of60.00 Lac.

Plz help to ensure the same and solve the query.

With Regards,

Sandeep Kumar

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9 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 July 2011

PLS CHECK WHETHER THE GROSS RECIEPT IS EXCEEDING RS 15,00,000 IN PY 2010-11

and not the turmnover ,if yes

then only tax audit u/s 44AB is applicable.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 July 2011

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	PLS CHECK WHETHER THE GROSS RECIEPT IS EXCEEDING15,00,000 IN PY 2010-11 and not the turnover ,if yes then only tax audit u/s 44AB is applicable.

Sandeep Yadav (CA Final ) (67 Points)
Replied 18 July 2011

Dear Mr. Tushar,

First thnx for the reply....

Infact the income tax notice has been served for this firm for the F.Y. 2008-09. Means for the F.Y. 2008-09 the turnover was 25 Lac and receipts also exceed of Rs. 10 Lac. Basically he provides the manpower only. Or u can say he search the resume and forward the same to client. If any one is selected then he billed for the same.

With Thnx in advance...

Sandeep

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 July 2011

So ur doubt is solved or do u have any more?

Sandeep Yadav (CA Final ) (67 Points)
Replied 18 July 2011

No,

Doubt is exist...is it covered under section 44AB for the F.Y. 2008-09....

Sandeep

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 July 2011

For current year only if it exceeds 15,00,000 then only sec 44AB is aplicable as itis ammended by Finance Act,2010 and for Ay 08-09 Rs 10,00,000 will be taken and it will be applicable.

Sandeep Yadav (CA Final ) (67 Points)
Replied 18 July 2011

Dear Sir,

I explain the point wise:-

1. Does manpower supply comes professional income or business income?

2. If it comes under professional income, then is there any specification or case history under any section of income tax exist to prove the same?

3. If it comes under business income, then is there any specification or income tax case under any section of income tax exist to prove the same?

Thnx....

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 18 July 2011

Manpower income will come under business income as the person providing manpower to the clients is himself not providing any technaical services in ma view

bt the persons which are hired are actually providing the consultancy services.Also check under Sec 44AA whther providing manpower supply comes under the dewfinition of profession or not , if yes then it will be taken as professional income.

Pls ask this question to experts not in forum so u can get their opinion as well .