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If not filing tax Audit

lokesh agrawal (142 Points)

06 October 2018

If we are not filling tax audit of pvt ltd company in case of loss organisation. so what is the consequences may arise?

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4 Replies

Ankita Chachan (practitioner) (548 Points)
Replied 06 October 2018

Penalty of 0.5 % of turnover subject to maximum of Rs. 150000 if audit is not done on time.

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 06 October 2018

The Form 3CA3CD is applicable when you are liabile to tax audit u/s 44AB of the IT Act.

If you are making profit or incurring loss does not matter for filing ITR or Form 3CD.

After filing ITR you have to mandatorily have to file Form 3CA3CD otherwise you will get a notice from the Department saying that you are liable for tax audit and Form 3CA3CD has not been filed.

lokesh agrawal (142 Points)
Replied 06 October 2018

if we are not file any return for this year so what the legal liability has been arise

CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 06 October 2018

Eventhough the assessee is liable for tax audit u/s 44AB of the Act and he does not file Form 3CA3CD after filing the ITR the ITR filed will be treated as not filed.

Accordingly penal proceedings will be applicable. Prosecution u/s 276CC will be applicable here.

The assesse will be punished with an imprisonment which shall not be less than 3 months and which may extend to 7 years and fine also may come.