SHIVAM GROVER (student) (304 Points)
31 July 2009guys pplz let me know that audit u/s 44ab is compulsery if a person sale is 38.5 lacs (excluding 4 % vat) but if we include vat amt than it increased the limit of 40 lacs i am confused cause in tally we made books excluding vat why audit including vat???
Sourabh Sharma
(CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds)
(771 Points)
Replied 31 July 2009
Turnover any where means sales or receipts part so u/s 44AB also turnover means total sales or gross receipts as the case may be i.e. including VAT.
If the sales is less than 40lacs but the purchase is more than 40 lacs than also a tax audit has to be done.
M K MODY
(BOOKKEEPING)
(75 Points)
Replied 31 July 2009
Mr. Sourabh Sharma,
I differs my opinion. Purchase has nothing to do in terms of Turnover. While calculating sales, vat input & vat output have their own effects. Net sales will be calculated for turnover [exclusive of vat output]. Have your explanation pl.
SHIVAM GROVER
(student)
(304 Points)
Replied 31 July 2009
| Originally posted by :Sourabh Sharma #Wicked Sunny# | ||
| " | Turnover any where means sales or receipts part so u/s 44AB also turnover means total sales or gross receipts as the case may be i.e. including VAT. If the sales is less than 40lacs but the purchase is more than 40 lacs than also a tax audit has to be done. |
" |
guys i am still confused plz clarify your words should i consider purchase or not and whether to take vat including or not?
PIYUSH JINDAL
(study)
(84 Points)
Replied 03 August 2009
Dear Shilvi,
for the applicability of Tax Audit purchase amount has no relevance.
M K MODY
(BOOKKEEPING)
(75 Points)
Replied 04 August 2009
Please refer this link.
Do not take hefty descision.
https://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section44AB.htm
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