06 December 2010
I run a Manpower Recruitment Agency and I am expecting my total gross receipts for the FY 2010-11 to be more than Rs 20 lakhs. Can you please tell me if I need to get my books audited? If yes, where can I find a good auditor, who does not charge me too much. I am in Mumbai.
I also want to know that being a porprietor, can I claim exemtion of medical bills?
If your client is deducting TDS U/S 194C (i.e as contractor) then no tax audit applicable to you, but if they are deducting TDS U/s 194J (i.e. professional) then your income is exceeding Rs 15 lacs then Tax audit will be applicable to you.
You can not claim exemption in case of your medical bills as it is your personal expenditure. In case of Medical premium paid in cash you can claim deduction U/S 80D of income tax act, 1961
07 December 2010
The provisions of the Income Tax Act,1961 governing the TAX Audit is contained in section 44Ab.
A person carrying on business has to get its accounts audited if the total sales, turnover or gross receipts in business, exceeds Rs. 60 lacs ( raised from present limit of Rs. 40 lacs).
A person carrying on the profession is required to get its accounts audited if the gross receipts in profession for the previous year exceed Rs. 15 lacs (raised from present limit of Rs. 10 lacs).
There is a thin dividing line for the applicability of Sec. 194 C and 194 J. If the servies provided is of the professional nature, then sec. 194 J is applicable and in that case the ceiling of Rs. 15 lacs would be applicable. Else, the ceiling of Rs. 60 lacs is applicable.
26 December 2010
Thanks for answering to my query. I have one more query for my friend.
One of my friends wants to start a company which will offer services like manpower recruitment, overseas education, immigration, and travel services. Can anybody pls suggest under what category shud he get his service tax registration? If he registers under Manpower Recruitment Agency category, can he later provide other services as well under the same s.tax regn no? Or it can be changed at a later stage as well. Or is there any category which may cover all professional services? Thanking u for ur help.
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