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tax audit in case of company

DILIP (ARTICALSHIP) (41 Points)

25 August 2018

Q - A newly setup company (under co act 2013) having turnover of rs. 100000/- and having net profit of around Rs. 30000/- for the FY 17-18. My questions is that whether such company need to submit tax audit report under section 44AB?

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11 Replies

CA P V N Varma (CA ) (609 Points)
Replied 25 August 2018

if turnover exceeds 1 Crore rupees then only Tax audit applicable for company Your company turnover is less than 1 Crore so no tax audit

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DILIP (ARTICALSHIP) (41 Points)
Replied 25 August 2018

but what about proviso mention in section 44ab

"Provided that in a case where such person is required, by or under any other law to get his accounts audited by an accountant, it shall be sufficient compliance with the provisions of this section If such person gets the accounts of such business or profession audited under such law before the specified date and obtains before that date the report of the audit as required under such other law and a further report in the form prescribed under this section."

after reading this, I think, tax audit is compulsory for companies.

what u say?

Poonam Lohiya (158 Points)
Replied 25 August 2018

All types of companies including private

limited company and one person company are required to obtain a tax audit every year, irrespective of annual turnover or capital. Also, maintenance of book of accounts is mandatory for company, irrespective of annual turnover.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

Tax Audit not required. If Audited under Companies Act.

Poonam Lohiya (158 Points)
Replied 25 August 2018

Section 44AB provides that, if a person is required by or under any other law to get his accounts audited, then he need not again get his accounts audited to comply with the requirement of section 44AB. Is such a case, it shall be sufficient if such person gets the accounts of such business or profession audited under such law and obtains the report of the audit as required under such other law and also a report by the chartered accountant in the form prescribed under section 44AB, i.e., Form No. 3CA and Form 3CD (refer to next FAQ for relevance of these forms).

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

***(if a person is required by or under any other law to get his accounts audited, then he need not again get his accounts audited to comply with the requirement of section 44AB)

DILIP (ARTICALSHIP) (41 Points)
Replied 25 August 2018

Raja P M,

please tell me the source from where, you are bring the Text.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

Originally posted by : DILIP
	Raja P M,please tell me the source from where, you are bring the Text.

Dear.,

Are You asking really You want or You will Insult to Me....?

DILIP (ARTICALSHIP) (41 Points)
Replied 25 August 2018

not like that brother, actually I want to refer it

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

Originally posted by : DILIP
	not like that brother, actually I want to refer it

Okay and Well...

Why I ask the way bcoz, You said it as TEXT. So, Only.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

Originally posted by : Poonam Lohiya
	Section 44AB provides that, if a person is required by or under any other law to get his accounts audited, then he need not again get his accounts audited to comply with the requirement of section 44AB. Is such a case, it shall be sufficient if such person gets the accounts of such business or profession audited under such law and obtains the report of the audit as required under such other law and also a report by the chartered accountant in the form prescribed under section 44AB, i.e., Form No. 3CA and Form 3CD (refer to next FAQ for relevance of these forms).