If purchase is more than Rs.40 lacs and Sales is less than Rs.40 lacs, whether Tax Audit under section 44AB is applicable? Whether the term Ternover as used in 44AB should be interpreted to mean only Sales or it includes purchases also.
Regards
Sunil Nayak.
Turnover any where means sales or receipts part so u/s 44AB also
turnover means total sales or gross receipts as the case may be
The Turnover means Gross receipts as well as the purchase ,if the sales is less than 40lacs but the purchase is more than 40 lacs than a tax audit has to be done.
Yes...i completely agree with Harsh.......
u/s 44AB if the gross receipts or sales are more than 40 lacs then tax audit is compulsory done by chartered accountant and in case of profession if gross receipts are more than 10 lacs than audit is compulsory
There are some contradictory views on the defination of turnover, but as per my knowledge for the purpose of Audit higher of sales or purchase shall be considered as Turnover.
Hello all
Would you please provide insight into the meaning of turnover? I am looking for case laws in which the courts has interpreted the word Turnover to include purchase also.
If anybody has the text of the case laws, pls mail the same at sunilvnayak1980 @ yahoo.co.in
Regards,
Sunil Nayak.
courts have interpreted purchases also iin turnover
they have considered turnonver sales or purchase whichever is higher
as far as i have learned turnover and receipt have been used in synonymus there by meaning only sales and not purchases bcoz if legislature intended turnover to include purchase then payment has also to be considered which would not be correct
but if any judgement is there please let me know
Please refer A Guide on Tax Audit. Bombay Bench of ITAT in case of Vijay N. Maheswari (HUF) v. ACIT (ITA No. 515/BOM/91 and 1725/BOM/91 dated 29.9.1994). If anybody got further information please let me know.
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