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tax audit

Shivshankar (a c.a student) (229 Points)

01 October 2009

what will be the consequenses if i fail to submit return within 30th september of a company for whom Tax audit is applicable.

Please also suggest what will be the fine/penalty amount.

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6 Replies

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 01 October 2009

Penalty U/s 271 F of Rs. 5000/- for late filing of return alongwith interest @ 1%p.m. U/s 234A.

regards,

Ratan

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MAHENDRA KUMAR BAGRECHA (FCA) (1402 Points)
Replied 01 October 2009

Penalty u/s 271B will be attracted and it is 0.5% of gross receipts/turnover or Rs.1Lakh whichever is lower.

CA SUDHAKAR (CHARTERED ACCOUNTANT) (189 Points)
Replied 01 October 2009

The penalty that may be levied is 0.5% of the turnover or Rs. 100000/=- whichever is lower. Tax audit report u/s 44AB should be obtained and also return to be filed before the specified date of 30th Sept. 2009, if the business turnover of the company is more than Rs. 40 Lakhs. In case delay is only few days and that is also due to a reasonable cause, penalty proceedings may be dropped by the assessing officer, after giving a reasonable opportunity to the assessee.

Rajeev (www.rkmco.com) (985 Points)
Replied 02 October 2009

i dont think any penalties can be levied , 271F is for nonfiling till one year from the end of the relevant assessment year ,if any tax is due

271B is for not furnishing the tax audit report , but a circular issued in 2007 ( no 5 ) states that 271B cannot be levied if tax audit report is not furnished with the ITR (new) , as long as the tax audit report is obtained in time .It should be noted that 271B is for not furnishing the tax audit report and not for filing of return .

I dont know under what section any penalty can be levied for not filing the return on time .

Obviously 234A for interest is attracted

Dont worry , if returns are not filed on time , Penalty is a quasi judicial process and show cause has to be issued before levying . 271B would hold good before online filing of ITR , i fail to understand how it will hold good in current scenario .

Gist :Failure to get the accounts audited in prescribed circumstances or failure to obtain the prescribed audit report within prescribed time period of failure to furnish the audit report along with the return, as required under section 44AB. [Section 271B]

Since by issuing circular no 5 , the board has done away with the provisio of furnishing the audit report along with the return , if the tax audit report is obtained before the due date , i think 271B cannot be levied

CA PRAMESH AGARWAL (Profession) (152 Points)
Replied 02 October 2009

You will have to may a penalty of 0.5% of gross receipts/turnover subject to a maximum of Rs. 1 lakh.

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partha (Tax Consultant) (48 Points)
Replied 07 October 2009

I totally agree with Rajib ....as the audit report need not to be filied no question of 271B.But, its always good to have the audit report signed on/before 30th Septmeber (in future cource I the audit report may be asked for).