statutory audit
FAHEEM AKRAM (293 Points)
28 May 2018
when statutory audit is required a firm or proprietorship ??
7 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 28 May 2018
Audit under Income Tax.
a) Under section 44AB.if his total sales, exceeds one crore rupees.
b) Under section 44AD if assesee has claimed income lower than 8% of turnover and his income exceeds the maximum amount which is not chargeable to income-tax.
Audit under GST act
COMPULSORY AUDIT OF GST – SECTION 35(5):
• Every registered person
• Whose turnover during a financial year exceeds Rs. 2 crores
These above are kind of Statutory Audit but not exactly the same, since it is required by Income Tax Act/GST law but not for any particular type of organization but for all organizations fulfilling the provisions of Income Tax Act/GST law to get Tax Audit done
a) Under section 44AB.if his total sales, exceeds one crore rupees.
b) Under section 44AD if assesee has claimed income lower than 8% of turnover and his income exceeds the maximum amount which is not chargeable to income-tax.
Audit under GST act
COMPULSORY AUDIT OF GST – SECTION 35(5):
• Every registered person
• Whose turnover during a financial year exceeds Rs. 2 crores
These above are kind of Statutory Audit but not exactly the same, since it is required by Income Tax Act/GST law but not for any particular type of organization but for all organizations fulfilling the provisions of Income Tax Act/GST law to get Tax Audit done
Kalpesh
(Chartered Accountant)
(349 Points)
Replied 28 May 2018
No Faheem.
Limit of turnover for audit u/s 44AB is 1 crore only.
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 28 May 2018
limit 2 crore is for section 44AD
Kalpesh
(Chartered Accountant)
(349 Points)
Replied 28 May 2018
For 44AD it's Rs. 2 crore but for 44AB is Rs. 1Crore
FAHEEM AKRAM
(293 Points)
Replied 28 May 2018
if we file 44AD so there is no require tax audit if our sale is below 2 crore.....what the concept of 1 crore for tax audit???
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