Whether a newly registered private limited being in existence for 5 months on FY 2010-2011 and no business activity should go for audit u/s. 44AB or wherther it can file the ITR-6 without mentioning the auditor details if audit is not applicable???????
5 Replies
ARUN KUMAR
(Financial Consultant )
(992 Points)
Replied 29 September 2011
every co whether private OR Public required to audit his account.
CA SUMiT PATWARi
(Chartered Accountant)
(1441 Points)
Replied 15 October 2011
Think from shareholders/stakeholders point of view. There is a clear separation of ownership and management.
Now, the management knows there was no busniess carried out but what about the stakeholders??? The assertion of the management that there was no business, is to be auditied by the auditor so that the owners of the business can rely upon the financial statements so presented by the management.
shubhani jain
(CA)
(102 Points)
Replied 15 October 2011
every company registered under the Companies Act 1956 is liable to statutory audit under the said Act. Tax Audit under section 44AB is different. In case of business concern It is mandatory in case where gross receipts, turover or sales as the case may be exceeds Rs.60 lacs in that financial year.
so in this case company is liable to audit under companies act. it does not make any difference that company has not commenced business yet.
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 15 October 2011
Audit Under Companies Act: Compulsory
Audit under Income Tax Act: Not required.
in ITR check the option:- Audit under section 44AB not applicable. no need to mention auditor's detail. because audit not conducted.
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