what items should be considered to count Rs. 60 lacs limit for TAX AUDIT U/s 44AB

Tax queries 776 views 1 replies

If Annual sales of any concern is60.00 Lacs and above then Tax Audit is Compulsory.

What items should be considered to count60 Lacs limit.

Whether Gross Sales(Turnover) will be taken into account 

Or Net Sales 

(Gross Sales

Less: Excise, Vat, other taxes)

Replies (1)

As per guidance note of ICAI:

If the sales tax/VAT and excise duty are included in the sale price no adjustment in respect thereof should be made for considering the quantum of turnover. If  however, the excise duty and/or Sales Tax Account (being seperate Accounts) and payments to the authority (i.e payment of sales tax/VAT and excise duty with the treasury)are debited in the same account, they would not be included in the turnover.

So excise,VAT etc is to be included ..


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