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audit

28 June 2018

my turnover during FY 2017 - 2018
is one crores 48 lakh is there compalsory to audit under GST LAW & under Income tax law.

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9 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 28 June 2018

1) if your busniess turnover excceds 1 crore audit is requried as per section 44 AB of the income tax act 1961 .

2) In GST law as per section 35(5) of the CGST act 2017 ,if your turn over excceds 2 crore audit is requried

GST applied form 1/7/2017

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 28 June 2018

@ Mr. Tejpal Jain.,

As per sec 44ab of income tax act Tax Audit applicable if Turn Over exceed Rs. 1 crore...

and

As per sec 44AD of Income Tax act Upto 2cr Tax Audit not applicable (if eligible business only)...

and
As per GST Audit is applicable Turn Over 2crs...

1 Like

Shivam RC (Student) (23683 Points)
Replied 29 June 2018

(A). Provisions for Audit under Income Tax Act 1961 :

1). As per SECTION 44AB of Income Tax Act 1961, Audit is mandatory by a Chartered Accountant in case of BUSINESS where the Aggregate Annual Turnover exceeds ₹1 Crore.
And for PROFESSION - If your Gross Receipts exceeds ₹50 lakhs in previous Year , then Tax Audit is mandatory.

2). If you have opted for Presumptive Taxation Scheme u/s 44AD , then Audit is not required upto the prescribed limit of ₹2 Crore.

(B). Provision for Audit under GST :

Audit as per CGST Act 2017 becomes applicable when your Aggregate Turnover exceeds ₹1 Crore...

In your case , Since your Turnover is ₹1.4 Crore, you are required to get your Books of Accounts audited by a Chartered Accountant/Cost Accountant in Practice both under Income Tax Act 1961 ( if not covered within the purview of SECTION 44AD) and CGST Act 2017...

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 29 June 2018

@ Shivam RC.,

As per GST Rule 80(3) :

CGST Rule 80: Annual Return (Chapter-VIII: Returns)

(3) Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

Shivam RC (Student) (23683 Points)
Replied 29 June 2018

Thank you Raja Sir for the information...

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 29 June 2018

Originally posted by : Shivam RC
	Thank you Raja Sir for the information...

You are welcome dear...

IMRAN (STUDENT) (46 Points)
Replied 02 July 2018

ABOVE 2 CR AMOUNT WIILL BE ELGIBLE

MURUGES (student) (70 Points)
Replied 11 May 2019

Sir,

If a person having registration in tamilnadu - 2 (as he has a business vertical) and one more registration in case of kerala

now the 2 crore turnover is for single GSTN or total turnover of a particular person (ie) Based on PAN

Please clarify

prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 11 May 2019

The “aggregate turnover” is the aggregate value of all taxable supplies, exports of goods or/and services or both, exempt supplies and interstate supplies of persons having the same PAN, to be computed on all India basis. However, such taxable supplies do not include the value of inward supplies on which GST is being paid under reverse charge basis. The aggregate turnover also excludes Central tax, State tax, Union territory tax, Integrated tax and cess.

please confirm with others also.