Piyush Jain (CA) (283 Points)
18 November 2008An assessee, who is liable to audit U/s 44AB, get his accounts audit before the due date (i.e. 30th Sep) but does no file his return before the due date.
Will he be liable to penalty of 0.5% of turnover or Rs. 100000/- whichever is lower. Or he will be charged only U/s 234A.
Thanks
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 18 November 2008
HI PIYUSH, he is liable for charge 234a section. by appliying advance tax formula.
regards,
ayush agrawal
madhur gupta
(student/article )
(1022 Points)
Replied 18 November 2008
i dont satisfy with above view
bcoz as per information with me since he liable for tax audit he will be penalasied with penalty of rs100000
but plz confirm it
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 18 November 2008
Jitender
(Chartered Accountant)
(8724 Points)
Replied 18 November 2008
intt u/s 234A is applicable.
and penalty for non-filing of audit report is .5% 0r 100000 whichever is less is also applicable.
CA CHINTAN AJMERA
(Chartered Accountant)
(2987 Points)
Replied 18 November 2008
HI PIYUSH,
Party is liable for penalty but if he does not prepare the a/c then 44ab penalty not leavible, only not maintain of book of account penalty leviable.
RAJU
(LEARNER)
(1089 Points)
Replied 09 December 2008
Dear all,
Penalty of lower of 0.5% or Rs.1.00 lakh is leviable in case the assessee does not file the tax audit report (and not return) within the time limit. It is is important to note that this penalty is not mandatory but is discretionery. If circumstances are beyond the control, the assessee can ask for non-levy of penalty.
Section 271B speaks of levy of penalty if either 1) accounts are not audited or 2) report is not filed. I fail to understand how an assessee can file the report of audit without getting his books audited (Issue of report implies that the books are audited). Hence, I believe if the report is not filed, then officer may demand for penalty.
Rgds/Dharmaraju
CAclubindia
