Dears
WHETHER A CA IN PRACTICE CAN SIGN AUDITED STATEMENTS OF A BUSINESS HAVING TURNOVER LESS THAN TAX AUDI T LIMIT? HE IS ALSO NOT COVERED FOR TAX AUDIT IF CONSIDERED UNDER SEC 44 AD. THIS AUDITED STATEMENTS ARE REQUIRED TO GET A BANK LOAN. Please give me an answer. Its very urgent
The tax audit is incomplete without the ca's sign on the audit report and balance sheets.
Dear sowmya
Your query is not clear. You have asked "whether audited statements can be signed by a CA in practice". If it is already audited then why should a different or same CA again sign on it ?????
| Originally posted by : Sowmya.S.Balan | ||
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Dears WHETHER A CA IN PRACTICE CAN SIGN AUDITED STATEMENTS OF A BUSINESS HAVING TURNOVER LESS THAN TAX AUDI T LIMIT? HE IS ALSO NOT COVERED FOR TAX AUDIT IF CONSIDERED UNDER SEC 44 AD. THIS AUDITED STATEMENTS ARE REQUIRED TO GET A BANK LOAN. Please give me an answer. Its very urgent |
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Did you mean if the turnover is below tax audit limit (1 Crore ) can a Chartered accountant do Tax Audit on your business and issue an audit report u/s 44AB?
A chartered accountant can not issue an audit report unless he has not conducted an audit at all. He can not give an audit report only for taking a bank loan without conducting an audit.
In your case may be the Chartered accountant is of an opinion that you are below the tax audit limit and hence your accounts are not required to be audited as per the Income Tax act. What he said is correct. If your accounts are not required to be audited under any law your bank can not demand an audit report for issuing a bank loan. Just furnish them your finalised Balance sheet and relevant details. That will suffice.
If bank required your financial statement should be audited by C.A. then you have to get audited your financial statement by C.A. from banks perspective and not any other statute. Format of audit report and area of financial statement to be audited preciously should be decided by bank.
THERE ARE THREE WAYS AN CHARTERED ACCOUNTANT IN PRACTICE CAN SIGN
1. TAX AUDIT APPLICABLE GET THE ACCOUNTS AUDITED U/S 44AB AND GET THE FINANCIALS SIGNED DULY AUDITED.
2. GET THE ACCOUNTS AUDITED U/S 44AD R.W.S. 44AB AND GET THE FINANCIALS SIGNED DULY AUDITED.
3. GET THE ACCOUNTS CERTIFIED BY CHARTERED ACCOUNTANTS AS UNDER:
"BASED ON THE BOOKS AND OTHER RECORDS MAINTAINED I CERTIFY THE ATTACHED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT"
SUCH CERTIFICATE IS ALSO A VALID CERTIFICATE FOR AVAILING BANK LOAN.
I HOPE THIS SOLVES YOUR QUERY.
Please Clarify more
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