Tax audit required on outsourcing business

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2013 Dear Sir,

My client is in IT outsourcing business. He fetches the work online and the same is done through his employees.

His gross receipt has exceeded Rs. 25 lacs.

Whether he is liable for Tax Audit?

It is a business or profession?

Please guide

Thanks in advance.

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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20 March 2013 dear...

as per sec 44Ab every professional having its gross receipt more that 25 lac is liable to tax audit

and here professional means a person carrying on specified profession including engineering profession..

therefore it the services provided by your client relates to engineering then limit will be 25 lac otherwise one crore.

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2013 Dear Sir,

thanks for reply.

The client is in IT outsourcing. They get miscellaneous projects for web-development, programming etc from other countries through sites guru.com etc...

What is your opinion....?

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