MUTHUSAMY (CA FINAL & ACS FINAL) (253 Points)
07 November 2009DEAR SIR
A BUSINESSMAN HAVING TWO BUSINESS, ONE IS TEXTILE MANUFACTURING AND ANOTHE ONE IS PACKING MATERIAL MANUFACTURING
IN THE FIRST BUSINESS HIS TURNOVER IS Rs 22.00 Lakhs, AND IN SECOND BUSINESS TURNOVER IS 20.00 Lakhs DURING THE FINANCIAL YEAR 2008-09
WHETHER HE IS LIABLE FOR TAX AUDIT UNDER SEC 44AB
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 07 November 2009
YES. iF ANY ONE OF THE BUSINESS IS OFFERED TO TAX U/S 44AD, 44AE OR 44AF ETC, SUCH AS CIVIL CONTRACT, RETAIL TRADERS OR TRUCK OPERATORS WHICH IS TAXABLE UNDER PRESUMPTIVE BASIS AND TURNVOER FROM OTHER BUSINESS IS LESS THAN RS. 40 LAKHS, THEN TAX AUDIT IS NOT REQUIRED. IN THIS CASE BOTH ARE MANUFACTURING UNIT AND NOT COMING UNDER RETAIL TRADE. HENCE, BOOKS OF ACCOUNTS SHOULD BE AUDITED U/S 44AB
Sunil
(Trader)
(2611 Points)
Replied 07 November 2009
However the business under 44AD 44AE or 44AF should itself be below 40 lakhs. Then you can deduct the turnover of these and if balance is more than 40 lakhs then you need to audit.
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 16 November 2009
His lotal turnover is from two business is above 40 Lakhs, so he is liablie to tax audit u/s 44AB
CAclubindia
