ADVOCATE VISHAL JOSHI

Tax Audit Under Section 44AB V/s. Section 44AD   Article explains provision of Section 44AB and Section 44AD of Income Tax Act, 1961 with reference to Income Tax Audit. While presenting the Union Budget for 2020-21, the Finance Minister announced that currently, businesses having turnover of more than one crore rupees are required to get their books of accounts audited by an accountant. In order to reduce the compliance burden on small retailers, traders, shopkeepers who comprise the MSME sector, she proposed to  raise by five times the turnover threshold for audit from the existing Rs. 1 crore to Rs. 5 crore . Further, in order to boost less cash economy, she proposed that the  increased limit for mandatory tax audit shall apply only to those businesses  which carry out less than 5% of their business transactions in cash.   Let’s discuss in detail:- SECTION 44AB a) BUSINESS Every person carrying on business shall, if his total sales, turnover or gross receipts, in business exceed or e

  MP HC Grant Bail to Pakistani National accused of GST evasion In the present case, the applicant is facing trial for offences punishable under section 132(1)(a)(i) of the GST Act and under Section 409, 467, 471, 120-B of the IPC. The applicant, Sanjay Matta who is a Pakistani national faces an allegation that he is indulged in clandestine clearance of mouth freshener, commonly known as ‘Pan Masala’, without payment of GST. The Counsel for the applicant prayed for bail being granted to the applicant on the grounds that the petitioners were earlier paying GST honestly and are also ready to pay the same in future. However, due to unprecedented circumstances of spread of COVID-19 pandemic and complete lockdown pursuant thereto; there was some delay in paperwork and submission of the invoices etc. It was further contended that though under pressure, they have already paid Rs. 7 crores and are still ready to pay the deficit, if any, found due on the final assessment. High Court states that