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TAX AUDIT U/S 44AB

GOPAL KUMAR AGRAWAL (PARTNER) (205 Points)

14 August 2009

If a Pvt. Ltd. company carrying on the business of Coaching classes through qualified professors whose gross receipts are more than 10 lakhs then in that case whether Tax Audit u/s 44AB will be applicable to it or not?

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8 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 14 August 2009

Yes if they are receiving professional fees and they exceed Rs. 10 lakhs.

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CA Pankaj Sharma (.) (34 Points)
Replied 07 September 2009

Yes....

VARUN (PCC STUDENT) (523 Points)
Replied 07 September 2009

ya sure .... when gross receipt exceeds 10 lakhs u r liable for tax audit u/s 44AB

Regards

Varun Makhija

CA PRAMOD SARAOGI (Chartered Accountant) (1113 Points)
Replied 08 September 2009

Originally posted by :GOPAL KUMAR AGRAWAL
"	In my opinion the Company is not liable to get its accounts audited under section 44 AB as the company is not undertaking any professional activities by itself. For the company its the business activities and not the professional activities. one has to go through the memorandu, and articles of association of the company for find out the exact nature of the venture that the company undertakes	"

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 08 September 2009

Here the question is whether the persons receiving professional receipts liable for tax audit or not and not the company. So individuals will be laible for tax audit. Company will be liable if receipts cross Rs. 40 lakhs.