My client's(an Individual) receipts from :
Sales inclusive of VAT 5,00,000(Vat Includes Rs.19,230)
Commission Receipt Incl. Service tax 35,00,000(Service tax includes Rs.3,85013)
Sales value of share 1,00,000 (capital gain Rs.35,000)
Sales figure of agriculture products 50000
Whether He liable to audit his accounts u/s 44AB of Income Tax Act?
Dear Sunil,
A person carrying on profession whose gross receipts in profession for an accounting year exceeds Rs.10 lakhs..he shall be liable to get tax audit done.
Since commisiion receipts are in lieu of services as service tax is paid...and its above 10 lakhs..then the client would have get his tax audit done.
Correct me if i am wrong friends.
Regards
Rahul
Dear ,
As per my knowledge the Commission receipt is not comes under profession receipt.
| Originally posted by :sunil | ||
| " | My client's(an Individual) receipts from : Sales inclusive of VAT 5,00,000(Vat Includes Rs.19,230) Commission Receipt Incl. Service tax 35,00,000(Service tax includes Rs.3,85013) Sales value of share 1,00,000 (capital gain Rs.35,000) Sales figure of agriculture products 50000 Whether He liable to audit his accounts u/s 44AB of Income Tax Act? |
" |
U/S 44AB for determining tax audit we hav to consider the GROSS RECEIPT,it is inclusive of everything(commission,agricultural products etc.) in my opinion TAX AUDIT IS APPLICABLE.
ya tax audit is applicable as his gross reciepts is 40 lacs
Some CA told us that Service tax should not be part of Gross Receipt, As well as Sale consideration of Share should not be taken as receipt.
In my opinion service tax and sale consideration of share should not be considered for calculaing turnover. Sale of share for sure as in your case it is not reciept from business or profession. regarding service tax there are diverse views.
If the sale turnover and the commission receipts are in respect of the same business concern, then section 44AB may well be applicable. Sale consideration of shares and agricultural produce will not however be considered for this purpose.
This is because, as per section 44AB: every person CARRYING ON BUSINESS shall, if his Total Sales, Turnover OR Gross receipts in BUSINESS exceed Rs. 40 lacs..... he shall get his books of account audited.
So long as he is not doing business in shares and agriculture is not his business activity, these incomes need not be considered for 44AB purposes.
CAclubindia
