Is tax audit necessary

Tax queries 615 views 4 replies

Hi all,

 

My client is carrying on a business of buying and selling shares for other people for some comission.

 

Now in his demat account the transactions cross an amount of Rs. 1 crore. will he be liable for tax audit?

 

Advise!

Replies (4)

If the commission receipts exceeds Rs 60lacs during the previous year then only he will be liable to Tax Audit u/s 44AB.

as the transactions in his demat account have crossed 60 lacs please check if the commission receipts during the previous year have crossed the said limit, if yes then Tax Audti is applicable & return reuired to be filed on or before 30th Sept of the A.Y.

You are liable to tax audit............If commission exceeds during previous year Rs. 15 lakh.

@ Giridhar in this case Rs. 15 lakh will be applicable not 60 lakh.........How R u senior Analyst?

Mr Bunha, please note that he is not rendering any profesional service.  there is no skill requried in such case.  also the TDS that would made from his commission would be u/s 194H & not 194J.  so how the limit of Rs.15lacs whihc is applicable to professional can be considered

Could you please then elaborate how this could be an profesional service.

and one more thing, please do not pass any comments on anyone's position.  This is an open medium for all of us to discuss.  Every one has it's own view. 

@ giridhar you have to refer section 44 AB very very very very carefully............

in your case how you compute turnover............?

For your kind information @ GIRIDHAR section 44AD also not applied in this case............NOW YOU WANT TO SAY ANYTHING..........ThIs Is A PuBlIc FoRum.......!


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