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Tax audit query

deepak (PCS) (424 Points)

26 September 2019

Our one private limited and one LLP providing services to the clients and received gross receipt 40 lac and 85 lac of each After tds deduction 10% under section 194J. Query is they are liable to do tax audit or not?

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3 Replies

Thooya (Accountant) (170 Points)
Replied 26 September 2019

Section 194j denotes receipts from professional service.. you need to declare 50% of your gross amount as net profit to avoid tax audit.. if not you are liable to submit reports under tax audit

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deepak (PCS) (424 Points)
Replied 26 September 2019

but LLP AND PVT LTD ARE NOT PROFESSIONAL ONLY TDS DEDUCTED BY OTHER UNDER SEC 194J

Kapadia Pravin (17254 Points)
Replied 27 September 2019

Private Limited Gross Receipt 40 lakhs so no need to tax audit as it's below 50 lakhs limit.

@ Deepak
You say LLP and PVT LTD are not Professional then what activities they are in.

And what basis TDS deducted under 194J and accepted by you also.

LLP Gross Receipt 85 lakhs and that is above 50 lakhs limit do tax audit is required.

TDS 20% deductions you have to claim under TDS schedule.