Tax Audit

This query is : Resolved

CA PAWAN SETHI (Querist)
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08 July 2009
our client has receipt inclusive of service tax (Rs.197666.78) is Rs. 4109625

Being the net receipt is Rs 3998358 , is the assessee liable to get its accounts audited

Is the service tax amount recovered be included in the gross receipts

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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08 July 2009 There is difference between Gross Turnover and Gross Receipts.

Gross Turnover - Sales inclusive of tax.
Gross Receipts - Received from customers inclusive of tax.

Now if gross receipts exceeds 40L then you required to do tax audit.

Ratan Sharma

Ratan Sharma (Expert)
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08 July 2009 Hi,
It depends on the system of accounting maintained by you. If you have a seprate account of service tax then it is not includible in your turnover however if you credit the service tax in your sales account then you are liable for audit u/s. 44AB otherwise not.

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