if the car hiring charges receipts of a tour operator (proprietor) during FY 2009-10 are 3900000, is tax audit required
thanks.
9 Replies
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 24 July 2010
yes,,,,,,,,,,
sevice sector--professional above 10 lacs
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 24 July 2010
dear vikas
the thresold limit for business is rs.4000000 and for profession it is rs.1000000 for financial year 2009-10.though ur case is covered under the professional category u are required to tax audit.
(Guest)
| Originally posted by : tarun rustagi | ||
 |
dear vikas the thresold limit for business is rs.4000000 and for profession it is rs.1000000 for financial year 2009-10.though ur case is covered under the professional category u are required to tax audit. |
 |
Ravindranath G K
(ARTICLE)
(50 Points)
Replied 24 July 2010
Ya for sure, Cos the limit is 10Lakhs in ur case
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 24 July 2010
Dear Vikas,
Tour operation is not covered by the term profession u/s 2(36) of IT Act. It is a business and is not liable for tax audit as the gross receipts or turnover does not exceeds 40 lakhs....
Mayank kharbanda
(Risk Advisory Services)
(409 Points)
Replied 24 July 2010
not liable to tax audit.....
as the said business is not covered under the definition of profession.....
Darpan aggarwal
(Article assitiant)
(141 Points)
Replied 25 July 2010
Dear Vikas,
I THINK Tour operation is not covered by the term profession u/s 2(36) of IT Act. It is a business and is not liable for tax audit as the gross receipts or turnover does not exceeds 40 lakhs FOR A.Y 2010-11 AND FOR 2011-12 IS 60 LAKHS.
PLEASE TELL ME ON WHAT BASIS YOU SAY THAT HE IS LIABLE FOR AUDIT AND WHICH SECTION IS ATTRACTED.
THANKS AND REGARDS
DARPAN AGGARWAL
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 25 July 2010
Hi Darpan,
it is well settled in the case Robbins Herbal Institute Vs. Federal Taxation Comm. (1923), whether a person carries on a profession is a question of degree and always of facts. Thus, whether it is profession or business, depands nly upon facts and circumstances of case. U cannot get exact section where a tour operator is covered by business or profession. it is the matter of interpretation of statutes and should be handle that way only.
The word Profession implies the professed attainment in special knowledge which is to be acquired only after patient study and application --United States vs. Laws (1896).
Tour operation doesnot required any specialised knowledge or skill, thus is now covered by the defination of profession. As against this, the defination of business as given by Sec 2(13) includes trade, commerce, manufacture and adventure in the nature of trade, commerce and manufacture. Thus, he defination of business covers very wide area.
Pankaj Gulati
(Tax Advisor)
(81 Points)
Replied 29 August 2010
Its a business and not profession. Tax Audit is NOT required in this case.
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