Search This Blog

Loading...

Sunday, August 21, 2011

Tax Audit Case Studies: Suggested Hints

Tax Audit Case Studies: Suggested Hints

(All Hints as per ICAI Guidance Note on Tax Audit)

Q.1: Audit required if Inclusive Method (i.e. VAT/ CENVAT made a part of Sales) of accounting being followed.

Q.2: In case of Proprietorship concerns turnover of all the “proprietorship firms” has to be aggregated for Section 44AB applicability. Single Form 3CD is sufficient for all such business

Q.3 (i): In case of Proprietorship concerns turnover of all the “proprietorship firms” has to be aggregated for Section 44AB applicability.

Q.3 (ii): U/s 64, turnover need not be clubbed, only income need to be clubbed.

Q.3 (iii): Partnership Firm and Partner are separate persons for Income Tax Act. Turnover need not be aggregated in such cases. Partner’s share in turnover of firms also not be considered for Section 44AB.

Q.4: Commission is the part of Turnover in case of Consignment Agent. Goods sold on Consignment not a part of Turnover in such cases.

Q.5: In case of speculation of business, the aggregate of the net earnings is the turnover/ gross receipts for Section 44AB.

Q.6: In case of money lending business, the aggregate of the interest income is the turnover/ gross receipts for Section 44AB.

Q.7: Total (Gross) Contract Revenue to be considered revenue for Contractors.

Q.8 (i): Tax Audit of both Business as well as Profession.

Q.8 (ii): Tax Audit not required for both Business as well as Profession.

Q.8 (iii): Tax Audit of both Business as well as Profession.

Q.8 (iv): Tax Audit of both Business as well as Profession.

No comments:

Post a Comment