Radhika (CA Final) (194 Points)
05 June 2010hello frens,
Myself as a statutory auditor (say) completed the audit and submitted the report. i have signed the report confirming that Rs.XYZ is the profit of the company.
Now the tax auditor during his tax audit derived at some other figure, saying that there are some more expenses which are disallowed.
How to treat this discrepancy?
Regards
Radhee
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 05 June 2010
Dear Radhika,
In case there is a difference in profits (Due to change in profits calculated by Tax Auditor and Stat. Auditor), the deff. has to be taken to Deffered Tax Assets or DTL , as the case may be
Shobhit
(CA, CS)
(100 Points)
Replied 05 June 2010
As far as i understand ur query, What ever the discrepancy is, the same can be adjusted in Computation of Income.
Books of accounts are prepared after considering the requirements of Companies Act, Accounting standards and various other statutory requirements. Where as for taxation purpose, some income or expenses may be treated differently depending upon the requirement given in the Act or the Rules made thereunder.
The difference can be adjusted in Income Tax computation, and subsequently in the Income Tax return.
And yes as mentioned above, the difference is adjusted by way of DTA / DTL in case its just timing difference.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 05 June 2010
Difference will be adjusted by way of DTA/DTL .
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 05 June 2010
Agreed with mukund sir................
ankush
(Article)
(34 Points)
Replied 05 June 2010
can any one tell me is there is any change in form 3cd(tax audit audit report) for the assessment year 2010-2011
nilesh
(propritor)
(23 Points)
Replied 23 December 2010
DEAR SIR
F.Y.2010-2100 HOW MANY AUDIT LIMIT AND WHICH POSTION WE ARE AUDIT ? AND 8 % PROFIT RULES WHICH BUSINESS IN RELATED I HAVE CONFUSIG ( I THNIK RETAIL BUSIINESS 8 % PROFIT IN 2010-2100 OTHER WISE 8 % NOT DISPLAY IF IN THIS CASE AUDIT IS COMPLSARY ?
CAclubindia
