Sales and Services Tax Audit
Sure, there is a threshold limit of tax audit for Sales & Services. The threshold limit is Rs. 1 crore for businesses with more than 5% cash transactions and Rs. 10 crores for businesses with less than 5% cash transactions.
This means that if a business’s total sales, turnover, or gross receipts in the previous year exceed Rs. 1 crore and the cash receipts and cash payments during the year exceed 5% of the total receipt or payment, then the business is required to get its accounts audited.
However, if the cash receipts and cash payments during the year do not exceed 5% of the total receipt or payment, then the business is not required to get its accounts audited even if the total sales, turnover, or gross receipts exceed Rs. 1 crore.
The threshold limit of Rs. 10 crores for businesses with less than 5% cash transactions was introduced in the Finance Act, 2021. This was done to encourage businesses to move away from cash transactions and adopt digital payments.
To visit: https://www.incometax.gov.in
For further details access our website: https://vibrantfinserv.com
