13 July 2011
If the turnover of the company is below the tax audit limits,whether 3CEB audit report under section 92e of the income tax act is required?
13 July 2011
Firstly pls note sec. 44AB & 92E both are independent section. Section 44AB specify the limits for tax audits & sec. 92E specify about the international transactions.
Sec. 92E mention that any person who has entered in any international transactions during the previous year shall get the such transactions audited from CA & furnish the report in form 3CEB.
Now, international transactions means, two or more associated enterprises enter into a mutual agreement for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises. The cost or expense allocated or apportioned to, or, as the case may be, contributed by, any such enterprise shall be determined having regard to the arm’s length price of such benefit, service or facility, as the case may be.
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