28 September 2012
A private limited company is providing professional services for cunsultancy in the field of engineering and its tax is deducted at source U/s 194 J for professional services. It's trunover is below Rs. 60 lacs but more than Rs. 15 lacs for F.Y 2011-12. Let me know if tax audit is applicable for this company or not ? Considering it gross receipts / turnover is less than 60 lacs and on the other hand it has rendered professional services in engineering consultancy valued above Rs. 15 lacs.
18 October 2012
As per ICAI, company engaged in rendering professional or technical services is classified under 'PROFESSION' meaning thereby tax audit applies if gross receipts exceeds Rs.15 lakhs (Rs. 25 lakhs w.e.f 1-4-2013)per annum.
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