04 August 2014
Assessee is running a franchise of sikkim manipal university from a rented premise by hiring staff and consultants for imparting education to students. Sikkim manipal university has deducted TDS u/s 194J and made payment of Rs 72,00,000/- to the assessee. Assessee has filed returned and showed net profit of Rs 15,00,000/- Is assessee liable for Audit u/s 44AB. Can the activity of assessee be termed as business or profession for AY 2013-14?
04 August 2014
yes since tds is also dedcuted u/s 194J and its activities are considered as income from business and the turnover must cross rs 100 lakhs in order to attract tax audit
05 August 2014
well practically the said concern is doing consultancy activities which should be covered under definition of profession (not covered under 44AA(1). So the tax audit should trigger at turnover of Rs 25 lakhs.
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