Tax audit applicable or not

This query is : Resolved

Ahmedraza (Querist)
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03 August 2013 Hello All,

Please find scenario

Partner ship firm having business of web developing, application developing having receipts of 25 lacs or more

Work is also done from third party as job work and salary is paid to employees work in office

Qualification of Partner: Graduation in computer application

Whether income is from profession or business?

CA Parul Saxena

CA Parul Saxena (Expert)
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03 August 2013 Income is from business and hence tax audit is not applicable as the limit of 100 lakhs is not crossed........

Ahmedraza

Ahmedraza (Querist)
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03 August 2013 Thanks for reply

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 August 2013 if the firm is providing services only by developing the above as per clients requirements and direction then it will be service.

If they are developing and selling in canned packages then it will be income from business.

For service the tax audit limit of Rs25 lacs.

CA Parul Saxena

CA Parul Saxena (Expert)
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03 August 2013 Mr.tushar i think the limit of 25lacs is for professional services only.....

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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03 August 2013 CA Parul Saxena pls refer my ans i have written for service given as professional only i meant.