Audit under sec 44AB
Tejas shah (Sweeper) (163 Points)
20 September 2019Tejas shah (Sweeper) (163 Points)
20 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 20 September 2019
1. Irrespective of the nature of income (business income) if the T.O crosses Rs.1 crore during the year tax audit u/s 44AB will be mandatory.
2. In your case interest for the inter-corporate loan is your company's income and if it crosses Rs.1 crore then tax audit u/s 44AB will surely be applicable.
Please correct me if the above solution has an alternative view.
Tejas shah
(Sweeper)
(163 Points)
Replied 20 September 2019
Kapadia Pravin
(17259 Points)
Replied 20 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 20 September 2019
1. You can. Interest income column will have Rs.1 crore which will be fully taxable. And the IT Department may view it from a different angle. You can try.
Tejas shah
(Sweeper)
(163 Points)
Replied 20 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 21 September 2019
What's the T.O in selling food and beverages?
Tejas shah
(Sweeper)
(163 Points)
Replied 21 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 21 September 2019
1. Yes, you are right in your approach. As per sec 71A, business loss can be set it off against IOS and T.O for the purpose of sec 44AB will only constitute revenue earned from Food and Beverage business.
2. Inter Corporate loans will not form part of T.O of your company and it will be taxed under the head IOS.
3. Your approach is correct as per books. But a company which incurs a loss and providing loan to its parent/sister company will ring a huge alarm to the IT department and as well as to the MCA. Make sure you have all the documents in order with respect to loan and interest income.
Please correct me if the above interpretation has an alternative view.
Tejas shah
(Sweeper)
(163 Points)
Replied 21 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 21 September 2019
1. Documents and records as per sec 186 Companies Act.
2. Once you show the income in B&P schedule it forms part of your business income exclusively for business as per ITR.
Tejas shah
(Sweeper)
(163 Points)
Replied 21 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 21 September 2019
Try in your ITR whether it actually mandates for a tax audit or not.
Tejas shah
(Sweeper)
(163 Points)
Replied 21 September 2019
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)