Applicability of Tax Audit on Software Consultancy
This query is : Resolved
28 August 2007
A Pvt. Ltd. Company is providing software development consultancy services. During the financial year 06-07, the gross business receipts were around Rs. 24 lacs. Whether company is liable to tax audit u/s. 44AB of the Income Tax Act, 1961? Which limit would be applicable to it for tax audit - Rs. 40.00 lacs or Rs. 10.00 lacs?
Please give urgent reply.
Please give urgent reply.
28 August 2007
A Pvt. Ltd. Company is providing software development consultancy services. During the financial year 06-07, the gross business receipts were around Rs. 24 lacs. Whether company is liable to tax audit u/s. 44AB of the Income Tax Act, 1961? Which limit would be applicable to it for tax audit - Rs. 40.00 lacs or Rs. 10.00 lacs?
Please give urgent reply.
Please give urgent reply.
28 August 2007
the company in this case is NOT liable to tax audit u/s 44AB as the threshold limit is Rs. 40 lakhs. The comapny is not carrying any profession, so Rs. 10 lakhs limit does not apply to it.
31 August 2007
I mentioned that company is rendering consultancy services in development of software and does not involve in any selling activity.
Profession includes Information technology and technical consltancy as defined in I.Tax Act, 1961.
Then why limit of Rs. 10.00 lacs does not become applicable?
Profession includes Information technology and technical consltancy as defined in I.Tax Act, 1961.
Then why limit of Rs. 10.00 lacs does not become applicable?
02 September 2007
Profession involves occupation requiring purely intellectual or manual skill - CIT v. Manmohan Das [1966] 59 ITR 699 (SC).
Software consultancy(& not sale of software) requires pure intectual skills.Therefore is a profession.
Therefore, lilmit of tax audit will be as applicable to professionals
Software consultancy(& not sale of software) requires pure intectual skills.Therefore is a profession.
Therefore, lilmit of tax audit will be as applicable to professionals
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- RCM INVOICING FROM NOV-2024
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
