Whether Audit is necessary?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 June 2010
My question is that whether the Insurance agents shall get its books audited if its gross commission is above Rs. 10lakhs.
12 June 2010
I have two answers for the issue.
1) Insurance agency comes under "business" as per ICAI Publication "Issues on Tax Audit". Thus, gross receipts if crosees Rs. 60/- lakhs per annum then only tax audit applies.
2) But now a person is eligible to become insurane agent if and only if he/she pass IRDA examination. For IRDA qualified agents, insurance agency can be viewed as a "Profession". If the cited issue is analysed in that angle, accounts are to be audited if the gross receipts exceeds Rs. 15/- lakhs per annum.
1) Insurance agency comes under "business" as per ICAI Publication "Issues on Tax Audit". Thus, gross receipts if crosees Rs. 60/- lakhs per annum then only tax audit applies.
2) But now a person is eligible to become insurane agent if and only if he/she pass IRDA examination. For IRDA qualified agents, insurance agency can be viewed as a "Profession". If the cited issue is analysed in that angle, accounts are to be audited if the gross receipts exceeds Rs. 15/- lakhs per annum.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2010
Then wht exactly shud i do.. get the books audited..
21 June 2010
i think it should be considered as profession and 15 lacs limit should be considred
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