Audit limit

This query is : Resolved

Arun (Querist)
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03 August 2011 Hello

I am a software engineer and leading a team of 7 software developers. I have permanent shop act license and I have a bank account with my firm name. So i assume my profession/business belongs to sole proprietorship.

I am confuse with the audit limit. Some people say that I am a professional so audit is compulsory because my receipt is around 20 lakhs. Some one say no need of audit because I am a sole proprietor and limit is 40 lakhs.

Can any one please help me to get this right.

Thanks
Arun

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 August 2011 Are u a graduate / post graduate engineer.
What is your business / profession / activity.
What is the arrangement between u and the rest seven persons.
Are those seven persons qualified like u as asked first herein above.
Did u execute a partnership deed between u and the seven others in stamp paper.
Do u have any other registration with service tax / Value added tax departments.
Upon hearing on the above, I shall try to commend on the issue.