Audit u/s 44AB

This query is : Resolved

PRIYESH BHARDWAJ (Querist)
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28 September 2008 I want to know that a newly formed company which is related to animation industry and its objects are to provide education to students and to produce films and animated serials then
on which limit tax audit will be done for this company ? on Rs.10 Lakhs or on Rs.40 Lakhs.
Please reply with reasons.

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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28 September 2008 This seems turnover by business as u explained because job work as well as training both involved as when u have formed a company with business objective so 40 L limit will be appliacble.

The provision for software industries will be applicable in your case irrelevant turnover is less or newly setup.

To know more reason ,you can confirm more from experts who are involved in tax audit of software industries.