Please let me know whether Tax audit is applicable if the Sales Turnover is Rs.35 lakhs and the purchase turnover is Rs. 45 lakhs.
CA Manoj Tilokani
(JOB)
(163 Points)
Replied 26 June 2010
TAX AUDIT IS NOT ATTRACTED. IF SALES TURNOVER EXCEEDS Rs 40 LACS THEN TAX AUDIT IS MUST. FURTHER PURCHASE TURNOVER IS NOT RELEVENT FOR TAX AUDIT APPLICABILITY.
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 26 June 2010
Tax audit will not be attracted. If sales turnover exceeds Rs 60 lacs then tax audit is must. Earlier the threshold limit was Rs. 40 lacs.
CA Manoj Tilokani
(JOB)
(163 Points)
Replied 26 June 2010
| Originally posted by : Þräßéêr | ||
 |
Tax audit will not be attracted. If sales turnover exceeds Rs 60 lacs then tax audit is must. Earlier the threshold limit was Rs. 40 lacs. |
 |
SORRY BROTHER IF I M NOT WRONG THEN 60LACS IS APPLICABLE FROM FY 2010-11 AND NOT FOR AY 2010-11.
DARSHAN
(FINAL STUDENT)
(257 Points)
Replied 26 June 2010
YES TAX AUDIT HAS TO BE ATTRACTED. BECAUSE PURCHASE WORDS IS ALSO INCLUDED IN THE DEFINITION OF TURNOVER IN THE INCOME TAX ACT.
Armaan
(Student)
(181 Points)
Replied 26 June 2010
are you sure mr.darshan.since i didnt know it please clarify with section no.
CA. Rohit Vishambhari, Vns.
(Chartered Accountant)
(150 Points)
Replied 26 June 2010
Not at all as per the provisions of the sec. 44AB of the Income Tax Act, 1961.
Ok...
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 26 June 2010
Do not support this view but there is a case law for tax audit on purchase.
Purchases will be treated as turnover
The Lordship Mrs.Sujata v. Manohar and D.P.Wadhwa J.J dismissed the special leave petition filed by the Department against the judgment dated 27/03/1996 of the Bombay High Court in ITA No. 924 of 1995, whereby the High Court rejected the reference application of the Department on the question whether the Tribunal was right in holding that the return filed by the assessee on 30th October, 1991, for the A.Y. 1991-92 was in time as it was under obligation to get its accounts audited in view of its purchases being in excess of Rs.40 lakhs and turnover connoted Sales or Purchases?[Chief CIT v. Vijay Maheshwari HUF C.C. No. 7819 of 1997 (228 ITR 157 (SC))].
Ruchi
(CA)
(277 Points)
Replied 26 June 2010
| Originally posted by : Manoj Tilokani | ||
|
|
TAX AUDIT IS NOT ATTRACTED. IF SALES TURNOVER EXCEEDS Rs 40 LACS THEN TAX AUDIT IS MUST. FURTHER PURCHASE TURNOVER IS NOT RELEVENT FOR TAX AUDIT APPLICABILITY. |
|
Agreed....
According to me purchase turnover is irrelevent and 60lacs is applicable from FY 2010-11
CA Parag Shukla
(Practicing Chartered Accountant)
(153 Points)
Replied 27 June 2010
Yes Tax Audit is compulsory if purchase exceeds 40L...........
CA sumit chejara
(ca final)
(99 Points)
Replied 27 June 2010
Dear Shashank,
In your query your turnover is not exceeding 40 lakhs as per section 44AB, hence tax audit would not applicable. As far as concern about purchases, section 44AB does not say anytihng
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
