tax vs statutory audit
This query is : Open
30 July 2010
Hello expert,
1) What is the diff. b/w tax audit & statutory audit?
2)to whom is tax audit applicable?
3)for a Pvt. ltd. company are both tax & stat. audit applicable?
thanks.
kirti
1) What is the diff. b/w tax audit & statutory audit?
2)to whom is tax audit applicable?
3)for a Pvt. ltd. company are both tax & stat. audit applicable?
thanks.
kirti
30 July 2010
Statutory Audits are those mandated by a statute. So by that definition even tax audit is a statutory audit.
Statutory audit (under the Companies Act) include statutory financial audit and statutory cost audit. Statutory Financial audit is conducted by a Chartered Accountant and Statutory Cost Audit is conducted by a Cost Accountant. The statutory financial audit is compulsory for all companies where as Statutory cost audit is applicable only to certain industries on fulfilling certain criteria.
Similarly Tax Audit (Section 44 AB) under the Income Tax Act is done by a Chartered Accountant.
Statutory audit (under the Companies Act) include statutory financial audit and statutory cost audit. Statutory Financial audit is conducted by a Chartered Accountant and Statutory Cost Audit is conducted by a Cost Accountant. The statutory financial audit is compulsory for all companies where as Statutory cost audit is applicable only to certain industries on fulfilling certain criteria.
Similarly Tax Audit (Section 44 AB) under the Income Tax Act is done by a Chartered Accountant.
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30 July 2010
For Every company having gross receipts from business of Rs.40 Lacs or more (60 Lacs from FY 2010-11) tax audit is mandatory. But statutory financial audit is mandatory in any case.
30 July 2010
sanjay ji,
say if a company has turnover of 2crores then both statutory & tax audit are applicable as gross receipts > 40/60L?
similarly if t/o is 35 lakhs then only statutory audit is applicable......am i correct?
thnx.
say if a company has turnover of 2crores then both statutory & tax audit are applicable as gross receipts > 40/60L?
similarly if t/o is 35 lakhs then only statutory audit is applicable......am i correct?
thnx.
30 July 2010
Absolutely Correct
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30 July 2010
Statutory audit is conducted under companies act Whereas Tax audit is as per Income tax Act.
There is no turnover or gross receipts concepts for Tax audit(40 lakh for those who carrying on Business and 10 lakh for those who carry on services).
There is no turnover or gross receipts concepts for Tax audit(40 lakh for those who carrying on Business and 10 lakh for those who carry on services).
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01 February 2012
Is tax liability worked out & tax deposited under tax audit? or tax audit only involves auditing & reporting under form 3CD?
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