Question ID :
40665
Tax audit
Assesee is carrying business of collecting milk from Farmers and send them to Dudh sangh. Assesee received commission for collecting and sending milk to Dudh Sangh but all the transaction of sale and purchase of Milk are routed through assessee's current account and turnover in account is 4 cr and commsiion income is 10 lakhs, hence whether tax audit applkicable in this case??
Posted by
Ninad Prataprao Shete
on
Jun 02, 2020
Filed Under
AUDIT
Total sales, turnover or gross receipts is 4cr, which above the prescribed limit of 1cr u/s. 44AB. Therefore, tax audit is applicable. in Addition, a person who is earning income in the nature of commission or brokerage is not covered u/s. 44AD (Presumptive taxation).
Posted by
CA PRADEEP C B on
Jun 05, 2020
Answer ID :
80621
My Answer is No. He is not liable to get his Accounts audited U/s 44AB of the Act. However, ensure proper documentation like his Appointment Letter/Contract as Commission Agent and percentage of Commission and other terms and conditions of supply milk to prove he is Agent and not engaged in business of buying and selling Milk. Since he is getting Commission of Rs.10.00 lacs TDS must have been deducted on Commssion 194H. Ensure this too. As long as you prove above, turnover in Bank Account is not criteria.
Posted by
Rupakula Rajasekhar on
Jul 11, 2020