Tax audit limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 Hello everyone,
Please help me out , what will be the limit for tax audit under section 44 ab of company operating totally through website and is providing services not any product. Please explain your answer with any reference.
Waiting for your early response.
Thanks

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 September 2013 If its providing only service then the tax audit limit is Rs.25 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 But it does not conver under thr professional services like accountancy, architecture, interior decorating etc.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 But the service the company giving, does not come under any professional services

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 September 2013 if they are not selling anything n are professional giving services then 25 lakhs limit will apply.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 I got your point Sir but i am not getting this that even though the services provided by the company are not professional one. then it may fall under 25 lakhs limit?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 September 2013 yes as per sec 44AB there is only 2 tax audit limit mentioned,
For business (selling products)-Limit is Rs 1 crore,
For Professionals providing service-limit is Rs 25lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 Thanku for the info sir. Now here you too have written that the professionals providing services. Now., our company is not covered under any professional nor are the services included in the professional servies

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 September 2013 From your initial question its clear u provide services which may or may not be professiobnal then sec 44AB is applicable as you are not selling any product and also refer sec 44AA for list of professionals.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 Yes sir as per the list given under section 44 AA for list of professionals, we do not fall under any category?
Then what would be the limit?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 September 2013 i think still if u giving normal service then apply 25 laks provision.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 thank you so much for your answer. Please provide any reference for the same?

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