Once Section 44Ab is applicable to any firm , then will it be applicable in subsequent years even though in subsequent years limit / turnover is within 40 Lakhs?
Piyush Mohta (Credit ) (41 Points)
09 July 2009Once Section 44Ab is applicable to any firm , then will it be applicable in subsequent years even though in subsequent years limit / turnover is within 40 Lakhs?
CA Manasa
(CA)
(1479 Points)
Replied 09 July 2009
No It is applicable only if the limit of 40 lacs is crossed in subsequent yr also..
sudhir gautam
(CA Final)
(145 Points)
Replied 09 July 2009
Yes the applicablity of section 44AB applies when the receipts exceed the limit of 40 lakhs in the previous year. It is does not matter that the limit exceed in one and not exceed in the subsquent year.
Piyush Mohta
(Credit )
(41 Points)
Replied 09 July 2009
BUT Section 44AB Reads - Every person
a) Carrying on business shall, if his total sales, turnover or gross reciepts, as the case may be,in business exceed or exceeds forty lakhs rupees in any previous year.
Now for example if in financial year 2005-06 44AB is applicable to a firm , then in 2006-07 will it be applicable even though in 2006-07 turnover is less than 40Lakhs. Because, Section says in any previous year. Please clarify ..
saurabh
(CA)
(552 Points)
Replied 09 July 2009
| Originally posted by :Piyush Mohta | ||
| " | BUT Section 44AB Reads - Every person a) Carrying on business shall, if his total sales, turnover or gross reciepts, as the case may be,in business exceed or exceeds forty lakhs rupees in any previous year. Now for example if in financial year 2005-06 44AB is applicable to a firm , then in 2006-07 will it be applicable even though in 2006-07 turnover is less than 40Lakhs. Because, Section says in any previous year. Please clarify .. |
" |
Mr Piyush plz read the law in the spirit of of its intention of making it compulsory for a person whose gross reciepts exceeds Rs 40 lacs in any P/y.
Here the meaning of "any previous year" means the prev yr in which it is to be assessed whether he is liable to get his accounts audited and that is to be found out every P/y independently.
ishwarya
(CA Final)
(84 Points)
Replied 10 July 2009
in case of a person practising the profession of medicine, if his gross receipts amount to Rs.38 lakhs and income from sale of contact lens is rs.3 lakhs, will he cum under d net of 44AB?
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