12 September 2010
For AY 2010-11 Tax audit u/s 44AB is applicable. As per IT Act if purchase is more than 40Lks than also provisions of 44AB applicable. For AY 2011-12 the limit will be 60 Lks so it is not applicable.
12 September 2010
Sales,Turnover ,gross receipts for the purpose of section 44AB does not include purchase vale. Hence tax audit as per referred section does not apply for the cited issue.
12 September 2010
Sir is there any criterion for difference betweeb sale and purchase for tax audit purpose. e.g if the purchase is 50 lacs but sale is only 30 lacs then will tax audit applicable or not
12 September 2010
But B.Chackrapani Warrier Ji as per Supreme Court in CIT Vs Vijay Maheshwari(HUF) [1997]228 ITR (st.) 157 SC " The expression 'turnover' in section 44AB denotes Purchase or Sales both."
12 September 2010
So as per the above judgment of SC if purchase exceed the limit even sales is low than also provisions of 44AB will applicable. So if purchase is 50Lks and Sales is 30Lks than also 44AB will applicable.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
12 September 2010
But Sir In tax audit report, under Annexure-1, for Gross Turnover we take only the sale figure and not purchase.