Tax audit is applicable or not?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2012 a event management company having turnover of Rs 26L. can any one tell me that the tax audit limit of Rs 15L is applicable on it or not.
if yes then please justify your as per relevant section of income tax act and if any circular available to justify it then please mention it..

i m waiting for the response bcos it is urgent...

CA Guru M

CA Guru M (Expert)
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20 August 2012 As per sec 44AB, Compulsory tax audit limit for AY 2012-13 is Rs.60L for Business & Rs.15L for profession.

For AY 2013-14 Rs100L & Rs.25L respectively.

CA Guru M

CA Guru M (Expert)
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20 August 2012 As per Sec 2(36) profession involves occupation requiring purely intellectual or manual skill, which is based on continuous learning & experience. It is exercised to earn a living.

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CA Guru M

CA Guru M (Expert)
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20 August 2012 Hence in my view Event Mgt Company activities does not fall within definition of profession or vocation.

Hence it will be treated as Business & Limit of Rs.60L or Rs.100L respective AY will be applicable in your case.

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SANYAM ARORA

SANYAM ARORA (Expert)
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20 August 2012 Dear in your case Tax Audit will not be applicable as you Do Not Fall under the category of Profession.

In your Case T/O limit will be 60 Lakhs.

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