tax audit
This query is : Resolved
08 November 2008
A pvt. ltd construction co. constructs a building in 3 years. In the Ist year it raised a bill and got the payment after deducting TDS by the concerned party. In the IInd year most of the building i.e. 99% is complete. But due to some problems, the concerned party did not make any payment. So the bill was also not raised by us. Now my query is that whether the construction co. is liable to tax audit. Its WIP is Rs. 1.30 crores and some misc income is Rs. 15000/-. No other credit entries are there.
I want to know whether WIP or cost of goods sold is considered for Tax audit or only the turnover is looked into.
Further in one another case, If O/Stock is Rs.15 lacs, purchases Rs.65 lacs, sales Rs.25 lacs and C/Stock Rs.55 lacs, Then the case is liable for tax audit or not.
Plz ans.
Thanx a lot.
I want to know whether WIP or cost of goods sold is considered for Tax audit or only the turnover is looked into.
Further in one another case, If O/Stock is Rs.15 lacs, purchases Rs.65 lacs, sales Rs.25 lacs and C/Stock Rs.55 lacs, Then the case is liable for tax audit or not.
Plz ans.
Thanx a lot.
08 November 2008
Tax Audit is based on Turnover. This is covered by section 44AB of IT ACT. You are liable to Tax Audit only if your turnover exceeds Rs. 40Lacs.
08 November 2008
sales/turnover/gross receipts is the criterion for 44AB. In the case of business if it exceeds Rs.40 lakhs the said section attracts.
sales/turnover/gross receipts is the criterion for 44AB. In the case of business if it exceeds Rs.40 lakhs the said section attracts.
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