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)

[DR.MARIAPPAN GOVINDARAJAN]

Whether it is just for information or absence of query?

AI Summary

Tax audit applicability: increased turnover threshold for digital-transactions exception may exempt eligible companies from audit this assessment year. The Finance Act 2020 amendment raises the turnover ceiling for the electronic mode transactions exception to the tax audit; entities with more than 95% of sales and purchases in electronic mode and whose turnover falls at or below the revised limit may thus be outside the tax audit requirement. The amendment is effective from 01/04/2020 for the specified assessment year. The forum reply recorded is non substantive and does not resolve applicability to the specific factual query.