Tax audit limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2010 Hi
Respected Member

Can any one tell me ?

1. if a person carrying on two separate nature of business, then how gross sales limit shall be calculated for tax audit.
Whether agreegate or each business.

My C.a. said that it shall be calculated agreegate but i read guidance note on tax audit, in that it is written that limit of gross sales i.e. 40 lakhs shall be calculated individully for each business.

Please Guide

Thanks
in advance

CA Kalpesh Gokani

CA Kalpesh Gokani (Expert)
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06 July 2010 Yes, limit for tax audit is calculated by agreegating gross sales, turnover & gross receipt of all business carreid out by assessee. If assessee opts to pay tax based on turnover, that much of turnover will not be considered for tax audit limit.