Tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 Sir,
The total work carried out by a Developer is Rs.1.13 crores during the FY 2012-13 but sales made during the year is only Rs.52 Lakhs. Whether tax audit u/s 44AB is applicable to the firm?
An early response is awaited.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 July 2013 u need to check whther gross income /gros sales is more then 1 cr then tax audit is applicable.

CA Anurag Nema

CA Anurag Nema (Expert)
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10 July 2013 In the statement issued by ICAI on the companies (Auditors’ Report) Order 2003 the word ‘turnover’ has been defined as under-
“The term ‘turnover’ for the purposes of this clause may be interpreted to mean the aggregate amount for which sales are effected or services rendered by an enterprises”
Therefore in my opinion the developer will be required to get its Books of Accounts audited

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Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2013 Thank you for your reply Sir.
If the Gross sales value of Flats is Rs.52 Lakhs, but the total expenditure incurred for building the appt. is Rs. 1.13 crores, then also is tax audit applicable? Does total expenditure incurred on building mean the total services rendered?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2013 you need to check only grss income/ turnover / sales and not exp for applicability of tax audit.

in your case since gross sales is only rs52 laks no tax audit is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2013 Thank you!!