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Audit limit FY 2017_18

ramesh jat (1 Points)

07 September 2018

my last year turnover is 1.75cr
is audit compulsory if yes then which type

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Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 07 September 2018

Tax Audit, GSTR Audit

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Shivam RC (Student) (23683 Points)
Replied 08 September 2018

As per the Provision of SECTION 35(5) of CGST Act 2017, read with Rule 80(3) of the CGST Rules 2017, Every Registered Person whose Aggregate Turnover during a Financial Year exceeds ₹ 2 Crore is required to get their Accounts Audited either by a Chartered Accountant or a Cost Accountant.

Since your Turnover does not exceeds the prescribed limit of ₹ 2 Crores ( i.e. ₹ 1.75 Cr ), you are not required to get your Accounts audited by a CA or CMA under GST Law.

However, as per the Provision of SECTION 44AB of the Income Tax Act 1961, Tax Audit is mandatory when :

a). A person carrying on BUSINESS, if total sales, turnover or gross receipts in business exceeds ₹ 1 Crore in any previous year.

b). A person carrying on PROFESSION, if his gross receipts in profession exceeds ₹ 50 lakhs in any previous year.

Therefore, you are required to get your Accounts audited by a Chartered Accountant under the Income Tax Act 1961, since your turnover exceeds the prescribed limit.

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