tax audit requirement

yes,,,,,,,,,,

sevice sector--professional above 10 lacs

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.

Ya for sure, Cos the limit is 10Lakhs in ur case

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....

not liable to tax audit.....

as the said business is not covered under the definition of profession.....

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

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.  

Its a business and not profession. Tax Audit is NOT required in this case.