TAX AUDIT applicability

This query is : Resolved

Sanjay Kumar Chaudhary (Querist)
Follow

12 October 2007 Dear Friend,

one of my client is providing consultancy services.He does not hold any professional degree.Whether he will be considered as "professional"
for tax audit purpose.

Regards
ca sanjay chaudhary

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
Follow

12 October 2007 Professional for the purpose of 44AB is only an exhaustive list but not an inclusive list. 40 lacs for persons dealing in goods and Rs.10 lacs for persons dealing in services. So, it does not mean that persons not holding professional degrees are not exempt from the purview of Tax Audit.

If that consultant has gross receipts exceeding Rs.10 lacs, then he is liable for tax audit.

Out IT Act even does not leave illegal income from out of the purview of Tax.

CA. Rayan Sequeira

CA. Rayan Sequeira (Expert)
Follow

12 October 2007 Mr. Ravi is right.
for tax audit under section 44AB no the holding of a professional degree is not necessary the main part is that the person should provide services in the nature of profession to qualify under the 10L bracket

Upgrade to CAclubindia Pro. Subscribe Now!

R.V.RAO

R.V.RAO (Expert)
Follow

12 October 2007 THE SERVICE TAX ACT HAS SO FAR COVERED 105 SERVICES ATTRACTING SERVICE TAX.ONE SUCH SERVICE IS MANAGEMENT CONSULTANT.
FOR DETAILS OF WHAT IS INCLUDED AND WHAT IS EXCLUDED FROM MANAGEMENT CONSULTANCY,PL. VISIT WEBSITE GIVEN BELOW.
THE RATE IS 12. 36%. SERV. TAX HAS TO BE COLLECTED FROM THE SERVICE RECEIVER AND TO BE DEPOSITED TO GOVT.
IF THE SERVICE PROVIDER ( YOUR CLIENT) HAS RECEIPTS FROM TAXABLE SERVICES OF MORE THAN RS. EIGHT LAKHS( THIS IS EXEMPTION LIMIT UNDER THE ACT) PER ANNUM, THEN ONLY HE NEEDS TO COLLECT SERV. TAX AND DEPOSIT THE SAME.]
THE THRESHOLD LIMIT FOR REGISTRATION AS A SERVICE PROVIDER IS SEVEN LAKHS.HALHYEARLY RETURNS ALSO NEED TO BE FILED BY THE SERVICE PROVIDER.
I SUGGEST PL. VISIT FOR MUCH MORE CLARITY ON THE SUBJECT www.servicetax.gov.in
R.V.RAO

CMA Gul S

CMA Gul S (Expert)
Follow

12 October 2007 All are very much correct, For Eg A Sales Tax Consultant is not a having a Certificate from CA or ICWAI Institue but his Gross REceipts are >10L he have to get his accounts audited

R.V.RAO

R.V.RAO (Expert)
Follow

12 October 2007 UNDER 44 AB, tax AUDIT REQUIREMENT IS GROSS PROFESSIONAL RECEIPTS OF RS. 10 LAKHS OR MORE FOR PROFESSIONALS.
44AB DOES NOT SAY WHO IS A PROFESSIONAL.
BUT SEC 44AA AND RULE 6 F SAYS ABOUT SPECIFIED AND NON SPECIFIED PROFESSIONS
AND WHAT TYPE OF BOOKS ARE TO BE MAINTAINED BY THEM.
SO PL. GO BY THE CRITERION OF GROSS PROEF. RECEIPTS OF RS. 10 LAKHS OR MORE FOR YOUR FRIEND TO BE COVERED UNDER TAX AUDIT PURVIEW.
R.V.RAO