one of my client and his turnover crosses 40 lakhs in the last year the he went for tax audit (it is a BPO sector) now his turnover for the current year is only 28 lakhs (AY 2010-11), is tax audit necessary?
senthil (consultant) (139 Points)
09 October 2010one of my client and his turnover crosses 40 lakhs in the last year the he went for tax audit (it is a BPO sector) now his turnover for the current year is only 28 lakhs (AY 2010-11), is tax audit necessary?
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 09 October 2010
Mr. Senthil
As per provision of Sec 44AB If Total Sales,turnover or Gross Receipts in business for the previous year relevant to the A.Y. exceed/s Rs. 40, Lakhs than Accoutns should be audited . In your case earlier U had turnover exceeds 40 lakhs and acs got audited but in subsequent previous yr ur turnover falls below the limit , U need not to go for audit u/s 44AB for futher detail pl. refer sec 44AB.
Deepa
(CA and CS Final B.Com University First)
(195 Points)
Replied 09 October 2010
Tax audit is not required
ANIL KUMAR JAIN
(PRACTISING CONSULTANT)
(65 Points)
Replied 10 October 2010
Tax Audit is not Necessary But Provisions of TDS apply so verify & Follow them if necessary ...
no need of tax audit
Message Thanked by (Total thanks : 1)
SANJAY
ACCOUNTANT
[ Scorecard : 18]
Posted On 09 October 2010 at 19:30
NO NEED TAX AUDIT
Message Thanked by (Total thanks : 1)
sarita goyal
CA FINAL STUDENT
[ Scorecard : 30]
Posted On 09 October 2010 at 19:46
NO TAX AUDIT IS NESSESARY.....
Message Thanked by (Total thanks : 1)
Deepa
CA final and CS Inter, B.Com University First
[ Scorecard : 125]
Posted On 09 October 2010 at 21:00
Tax audit is not required
Message Thanked by (Total thanks : 1)
anil kumar jain
Student
[ Scorecard : 36]
Posted On 10 October 2010 at 11:13
Tax Audit is not Necessary But Provisions of TDS apply so verify & Follow them if necessary ...
ARCHNA
Student
[ Scorecard : 82]
Posted On 10 October 2010 at 13:35
no tax audit is required
NOT TAX AUDIT IS REQUIRED
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 10 October 2010
| Originally posted by : M.M.SURANA | ||
 |
Mr. Senthil As per provision of Sec 44AB If Total Sales,turnover or Gross Receipts in business for the previous year relevant to the A.Y. exceed/s Rs. 40, Lakhs than Accoutns should be audited . In your case earlier U had turnover exceeds 40 lakhs and acs got audited but in subsequent previous yr ur turnover falls below the limit , U need not to go for audit u/s 44AB for futher detail pl. refer sec 44AB. |
 |
+ 1.
Gokul Viswanath Shenoy
(Company Secretary & Finance Manager)
(430 Points)
Replied 10 October 2010
only if his turnover exceeds the 40 lakh limit in the relevant previous year, he needs to go for tax audit..in this case, it's 28 lakhs, so no need to go for tax audit for the current year.
jinkesh jain
(Taxation)
(227 Points)
Replied 11 October 2010
No need for tax audit in current year since the turnover is within the prescribed limit
Nabeel
(CA)
(3288 Points)
Replied 11 October 2010
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 12 October 2010
Hello Friends,
Turnover / Gross receipts of the current previous year woud be considered for determining eligibility to get the tax audit done. Thus turnover/ gross receipts of the preceeding previous would have no relevance as far as eligibility for tax audit of Current Previous year.
Since in the current previous year i.e. PY 2009-10, u'r turnover/ gross receipts is only 28 lakhs i.e. below 40 lakhs, u r not eligible to get the tax audit done even though in preceeding PY i.e. 2008-2009, u'r turnover/ gross receipts exceeds 40 lakhs.
Regards,
Manoj
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