tax audit applicability

[Madhavan iyengar]

A Company whose turnover is ₹ 4 crores in fy 2019-20 and has more than 95% of its transactions in sales and purchases in electronic mode in aforesaid case will tax audit not be applicable to the company as per the proposed amendment made in finance act 2020 wherein the limit specified in said cases ie more than 95% of transaction in sales and purchases thru electronic mode is upto ₹ 5 crores. ( proposed amendment will beEffective from 01/04/2020 ie AY 2020-21)

AI Summary

Company Challenges Tax Audit Applicability Post-Finance Act 2020; Queries Raised on 5 Crore Threshold for Electronic Transactions A company with a turnover of 4 crores in FY 2019-20, conducting over 95% of its sales and purchases electronically, questions the applicability of a tax audit under the Finance Act 2020 amendment. The amendment, effective from April 1, 2020, for AY 2020-21, raises the threshold to 5 crores for companies with such electronic transactions. The response queries whether the initial post was meant for information sharing or if there was a specific question.