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Tax audit

ratna (MBA) (71 Points)

11 July 2016

Sir our Company's turnover is 80 lakhs is it necessary for tax audit for at 2016-17 is it compulsory for auditor signature

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9 Replies

Shubham Gupta (Business Consultants) (2077 Points)
Replied 11 July 2016

tax audit mandatory if turnover more than 1 Crore

2 Like

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 11 July 2016

I agree with Shubham. Further, turnover is not the only criterion for the purpose of tax audit. Even if gross receipts are >1 crore, then tax audit would be applicable. So if gross receipts is <=1 crore (in your case), then tax audit would not be applicable.

Dinesh Mertiya (PROFESSIONAL) (761 Points)
Replied 11 July 2016

I agree with Poornima ji

Company means Private Limited or Public Limited Company not Proprietorship firm
if turnover or gross receipt in business for the year exceed 1 crore, then tax audit under section 44AB is mandatory .

CA. Karthik Reddy MNS (Practicing Chartered Accountant) (92 Points)
Replied 11 July 2016

Even if turnover is less than 1 crore and the assessee is offering income less than 8% of turnover,then tax audit is mandatory.Isn't it????

1 Like

Pratick Datta (-) (71 Points)
Replied 11 July 2016

agree with MNS Karthik Reddy.

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Pratick Datta (-) (71 Points)
Replied 11 July 2016

if you are offering profit less than 8% of turnover and you are an assessee who is eligible u/s 44AD then tax audit is compulsory. in case your total income don't cross exemption limit then no need to do tax audit.

CMA Poornima Madhava (CMA) (13112 Points)
Replied 11 July 2016

But 44AD is not applicable to Companies

Pratick Datta (-) (71 Points)
Replied 11 July 2016

very sorry. question was about company. Agree with Poornima Madhava . section 44AD is not applicable for Companies. so here no need of tax audit.

ratna (MBA) (71 Points)
Replied 12 July 2016

Thank u all for valuable information and one more query our's is pvt. ltd company and we filled tax audit up to 2011-2012 after that we didn't file income tax returns due to some disputes among directors. now shall we file from 2012 -13 on wards The company is in loss and turnover is less than one crore and gross receipts also.