Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Audit limit for auditors

Afzal Momin (CA FINAL) (177 Points)

25 September 2012

Hey friends please provide me the Limit of Audit that a Auditor Can do ? as regards to Tax Audit u/s 44AB and Statutory Audit........

Reply
Follow
Share

9 Replies

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 25 September 2012

In section 44AB of the Income-tax Act,—

(i) in clause (a), for the words “sixty lakh rupees”, the words “one crore rupees” shall be substituted with effect from the 1st day of April, 2013;

(ii) in clause (b), for the words “fifteen lakh rupees”, the words “twenty-five lakh rupees” shall be substituted with effect from the 1st day of April, 2013;

(iii) in the Explanation, in clause (ii), for the words, figures and letters “the 30th day of September of the assessment year”, the words, brackets and figures “the due date for furnishing the return of income under sub-section (1) of section 139” shall be substituted

Section 224 (1B) : Section 224 (1B) places a ceiling on the number of audits of public companies which a Chartered Accountant not in full time employment, or a firm of Chartered Accountants, can conduct. (a) A person can be appointed as an auditor, who is not in full-time employment elsewhere, of a maximum of 20 companies as described below (b) Where some companies have paid-up capital of or more than 25 Lacs, a person can be appointed as auditor of only 20 companies out of which not more than 10 companies can have paid up capital of or exceeding Rs. 25 Lacs. (c) In a firm of auditors, total number of 20 companies shall be for every partner of the firm who is not in full-time employment elsewhere. As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of Rs. 25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling.

Regards,

RAJESH CHOUDHARY

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 25 September 2012

Do not get confused between normal audit (under companies act) and tax audit under IT act. Sec 224 is only for audit of companies - For one CA max 30 companies (including pvt ltd out of which not more than 10 public ltd comp can have Share cap >25 lacs) 45 Tax audits for one CA - this includes ind,huf, firms, companies.

Regards,

RAJESH CHOUDHARY

2 Like

yashsr (CA) (2285 Points)
Replied 25 September 2012

Hello Rajesh,

What about Maharshtra VAT Audit? Is there a limit for the same?

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 25 September 2012

Originally posted by : yashsr
	Hello Rajesh, What about Maharshtra VAT Audit? Is there a limit for the same?

No Yashsr the due date of MVAT Audit Report U/s 61 is 30th November

Regards,

RAJESH CHOUDHARY

yashsr (CA) (2285 Points)
Replied 25 September 2012

Originally posted by : RAJESH CHOUDHARY
	Originally posted by : yashsr Hello Rajesh, What about Maharshtra VAT Audit? Is there a limit for the same? No Yashsr the due date of MVAT Audit Report U/s 61 is 30th November Regards, RAJESH CHOUDHARY

I'm not talking about the due date. I'm talking about the limit of MVAT Audits one CA can do.

Upgrade to CAclubindia Pro. Subscribe Now!

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 25 September 2012

Ohk so sorry dude.

MVAT Audit limit of T/o is still Rs.60Lac

Regards,

RAJESH CHOUDHARY

yashsr (CA) (2285 Points)
Replied 25 September 2012

Originally posted by : RAJESH CHOUDHARY
	Ohk so sorry dude. MVAT Audit limit of T/o is still Rs.60Lac Regards, RAJESH CHOUDHARY

I'll reframe the question again. As a Practising Chartered Accountant, how many MVAT Audits can I undertake for a Financial Year? Like for Tax Audits it is 45,,