Audit u/s 44ab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 WHEN AN INDIVIDUAL IS HAVING TWO FIRMS OF SAME NATURE AND BOTH FIRMS ARE IN AUDIT SO I WANT TO KNOW THAT WHETHER A SINGLE TAX AUDIT REPORT WILL BE PREPARED OR SEPARATE REPORT WILL BE PREPARED FOR THE FIRMS.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 August 2013 First expose your self to clear my doubt -

-Are you an Auditor or an Auditee ?
.
If you are an Auditor-
-Prepare 3 Audit Reports and charge accordingly. The 3rd Audit Report will be a
consolidated one to fill up the ITR.
.
If you are an Auditee-
Consolidate the relevant figures and prepare
Consolidiated Financial Statements so that the auditor will comment collectively on these.
.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 SIR I AM AN AUDITOR

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 so sir i have to prepare two reports whether i make one audit report with separate profit and loss accounts nd balance sheet of both the firms and should i merge the annexure and form 3cd.

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 sir please if u can tell me the whole process please

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 I have Individual named Tushar Goel and he is proprietor of Two firms namely Goel Roadlines and Goel Bulk Carrier and both are in audit. Please telle me what should i do

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 August 2013 You have to fill up the consolidated data as far as ITR -Balance Sheet & P&L A/c and Computation is Concerend.
.
You may show the names of the two firms -
under which business is carried on. Specify the nature of the business individually.
.
Upload consolidated financial statements.
Furnish the names of firms in 3CD or its shedules where ever these can be given.
.
In the new system I have yet to work and upload an audit report. Still can say that prepare 3 columns A, B and C (C= A+B).

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 Yes sir I am clear about consolidate data for ITR balance sheet and Profit and Loss a/c but what about Audit Report sir whether i should make on report or Two Reports for the same proprietor.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 August 2013 Prepare a Single Audit Report by mentioning the names of the two concerns in 3CB and 3CD.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2013 You have solved my problem thank you sir.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 September 2013 Prepare tax audit report separately for each of the firms and give your comments accordingly and then file the ITR. It has not been clarified why the firms are in audit. Is is due to Turnover or due to showing profit less than 8%. So get these answers first and then do it accordingly.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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09 August 2020 You should actually understand that in case of individual, tax audit is done of a PAN. So every income , expense asset and liability has to be covered under audit of an individual person. There is no separate Identity of a proprietorship firm unlike in case of partnership ,,LLP or a company. Based on this logic, every business of the individual person comes under the ambit of tax audit.

Suggestions given by the experts are base don this logic.

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