1. In case of 44AE (Business of plying Goods Carriages)., where assessee is owner of less than 10 goods carriages but the T.O. is more than 40 lakhs, whether provisions of S. 44AB is applicable (if minimum income is offered for taxation)
2. If there is no Sales/TO/Work done during the financial year but Assessee has received Advance of Rs. 42 Lac (to be adjusted against supply of goods), is he liable for tax audit.
3. Additional sales found as a result of search u/s 132 of IT Act. Sales recorded in books Rs. 35 Lacs. Additional sales on the basis of seized document amounted to Rs. 6 Lac, whether provisions of S.271B are attracted?
4. If the assessee follows exclusive method for accounting of VAT, Excise Duty etc. whether the element of tax, excluded from turnover recorded in books, forms part of turnover u/s 44AB of Income Tax Act in view of provisions of s.145A? Consider a situation where Sales (excluding VAT) is Rs. 39 Lakhs and VAT @4% is Rs. 1.56 Lakhs, whether tax audit applies.
5. In case where accounting for taxes on sales/purchase is done using exclusive method there is an obvious deviation from provisions of s.145A. The valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head “Profits & Gains of Business or profession” shall, therefore, has to be adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of its valuation. In such cases whether the effect of deviations should be disclosed in the tax audit report and adjusted in the return of income?
6. A company is carrying on three different types of business activities viz. manufacturing, trading and providing services. Separate books of account are maintained, but consolidated P & L and B/S is prepared. Should separate form 3CD be prepared for each type of business.
7. When Assesses opts for exclusive method of VAT as per Guidance Note or VAT issued by ICAI, the amount of Sales Tax is routed through a separate Input/Output Account and not through Profit and Loss Account. Whether provisions of Sec. 43B are applicable?
Issues in Tax Audit
Last updated 367 days ago by Darshan Jain
