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Urgent help-Tax Audit Limit

Vikas (Student) (129 Points)

23 June 2010

One of our client is developing softwares & sell it. So, what would be audit limit?????? 10 Lakhs or 40 Lakhs???? & what would be its income called??? "Gross Receipts" or "Sales"???

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14 Replies

Kapil (Chartered Accountant) (97 Points)
Replied 23 June 2010

hi vikas

the tax audit limit has been increased w.e.f. 1-4-10.. for business it is 60 lacs.. and for profession it is 15 lacs.. i think the mention case fall in profession..so limit would b 15 lacs..

Kapil (Chartered Accountant) (97 Points)
Replied 23 June 2010

any of.. total sales, turnover or gross receipts..

1 Like

Ankit (C.A.-Student) (680 Points)
Replied 23 June 2010

Dear Vikas

in my view your client case falls in 40 lakh limit for financial year ending 31 march 2010 as your client is selling software which is good or article though it is intangible. your client is selling software not providing services that is why it does not falls for professional limit of 15 lakh.

thanks

1 Like

Vikas (Student) (129 Points)
Replied 23 June 2010

Originally posted by : kapil
	hi vikas the tax audit limit has been increased w.e.f. 1-4-10.. for business it is 60 lacs.. and for profession it is 15 lacs.. i think the mention case fall in profession..so limit would b 15 lacs..

I forgot to write that m talking abt F.Y. 2009-10...& Thanx...

Vikas (Student) (129 Points)
Replied 23 June 2010

I agree with Ankit... same thinking... Lets see other's point of view...

jaivachhaitani (-----) (23 Points)
Replied 24 June 2010

i think above case under limit of Rs 40 lacks because he is developing an softwere & sale which as good as manufacure of any article & sale or purchase of any goods & sale it , he is not providing any service to any body , he is doing a trading

Jitender Singh (Article Clerk) (24 Points)
Replied 24 June 2010

there is no professional service here... its pure case of trade.. 40 lakh is the limit.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA) (8311 Points)
Replied 24 June 2010

Originally posted by : kapil
	hi vikas the tax audit limit has been increased w.e.f. 1-4-10.. for business it is 60 lacs.. and for profession it is 15 lacs.. i think the mention case fall in profession..so limit would b 15 lacs..

Armaan (Student) (181 Points)
Replied 24 June 2010

the change of limit applies w.e.f 01-04-2010 or 01-04-2011.i think its from 01-04-2011.hence for f/y 2009-10 it is 40/10 lacs??????????

(Guest)

there is no professional service in this case . hense the limit will be 40lakh for AY 2010-11

CA Mihir Shah (Working with Suresh Surana & Associates) (231 Points)
Replied 25 June 2010

hi,,

the limit would be 60 lakhs because the client is developing softwares. even we have the same industry client and the said receipts are treated as sales and therefore the limit is 60 lakhs