Tax limit

A private limited company provide consultancy services . what is tax audit limit Rs. 50 lakh or RS. 1 crore?
Replies (11)
If turnover is more than 1cr then audit is required but is turnover is under 50lakhs then return can be filed u/s 44ADA no audit is required

1 Crore. 

Because 44ADA and AD benefits are not allowed to Companies

Limit is 50L for consultancy service as per 44AB(b).

What is reason for 1 Crore?

Co provide Consultancy service. Why not 50 lakhs?

Please read all section properly, deeply and then give reply.

Originally posted by : Komal Barapatre
If turnover is more than 1cr then audit is required but is turnover is under 50lakhs then return can be filed u/s 44ADA no audit is required

 

Originally posted by : Komal Barapatre
If turnover is more than 1cr then audit is required but is turnover is under 50lakhs then return can be filed u/s 44ADA no audit is required

Please read all section properly, deeply and then give reply.

Originally posted by : CA Puja Sharma
1 Crore. 

Because 44ADA and AD benefits are not allowed to Companies

What is reason for 1 Crore?

Co provide Consultancy service. Why not 50 lakhs?

Read more at: https://www.caclubindia.com/forum/tax-limit-585445.asp?offset=1

As per sec 44AB if assessee is carrying any business where total turnover is more than 1 crore and in case of profession where gross receipts are more than 50 lakhs are required to get their accounts audited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As per sec 44AB if assessee is carrying any business where total turnover is more than 1 crore and in case of profession where gross receipts are more than 50 lakhs are required to get their accounts audited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Audit Limit is 1 Cr/10Cr for EVERY PERSON carrying on business and the limit is 50 lakhs for EVERY PERSON carrying on profession.

Since Private Limited company is covered in EVERY PERSON so 50 Lakhs limit applies to PLC as well.

But, it should be carrying specified professional service (Doctors, Lawyers, Architects etc.)

Hope this clarifies.

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