TAX AUDIT

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sushil

sushil (Querist)
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08 December 2009 WHAT IS TAX AUDIT, WHAT TYPE OF BOOKS A TAX AUDITOR LIKE TO CHECK REGARDING A MANUFACTURING UNIT

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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15 December 2009 When the turnover is exceeding Rs.40 lacs in a year; then tax audit is applicable.

You have to appoint one tax auditor to get the accounts audited.

Cash Book, Ledger, Sales Register, Purchase Register, Journal, Stock Registers and Expenses of vouchers are checked by the tax auditor.

He also checks whether accounting standards have been followed or not while maintaining books of account.

Further checking are -

1 TDS has been paid or not.

2 Payments made exceeding Rs.20,000/- in cash

3 Loans taken exceeding Rs.20,000/- in cash

4 Depreciation as per Income Tax Act

5.Taxes and Duties whether paid in time or not.