guys 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???
Menu
help me out
Replies (5)
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.
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.
| 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?
Dear Shilvi,
for the applicability of Tax Audit purchase amount has no relevance.
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
Recent Topic
- CA FINAL FR IndAS 33 Doubt(Corrected)
- Clarification Needed: Reporting Accrued vs Paid FD
- TDS on prize given to participants in Livestock sh
- TDS related matter - 194 IA
- Research: How do CA firms handle GSTR-2B reconcili
- CA FINAL FR IndAS 33 Illustrtion 14
- Taxation on Sale of old Jewellery Received at Marr
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
Related Topics
CAclubindia
