01 October 2008
have formed a private limited company providing management consultancy services and other project finance work. My Previous Year Income is Rs 16 Lacs
My query is whether my company will be covered under Professional Category and will be liable for Tax Aud
As Company being artifical person cannot possess profesional knowledge , than how can it be treated as professional income and limit of Rs 10 Lacs apply ?
02 October 2008
Yes Audit u/s 44AB must be conducted. Employees, directors may have provided services to the clients of the co. and such income is received by the co. its professional receipts.
02 October 2008
For the reply to the last part of your question your kind attention is invited to page 25 of icai publication viz., ISSUES ON TAX AUDIT (JUNE 2000 EDITION). Moreover I have answered your question,when it has been raised first,and fully agrees with the views of the learned persons viz., Mr Vivek and Mr. Chintan.
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