The Audit of books of account would be subject to the consideration of below laws. However in case you have any company(Pvt/Public) register under companies act 2013, it is mandatory to have the company audit being performed by a Practicing Chartered accountant.
There is 3 type of Audit in India
- Company Audit (under companies act 2013)
- GST Audit (under GST act 2017)
- Income Tax Audit (under Income Tax act 1961)
- As per companies act, 2013 books of accounts of all companies need to be audited by a practicing Chartered accountant irrespective of turnover/Sales/Service.
- Every Taxpayer registered under GST and turnover/Sales/Service exceed Rs. 2 crores in a financial year, books account for that Financial year need to be audited by a practicing Chartered accountant
- Income Tax Audit based on turnover basic:-
- Tax Audit(u/s 44AB):- for Income Tax Audit, Limit of Tax Audit are notified every year by Income Tax Department beyond which Tax Audit is mandatory. As of now for FY 2018-19 in case your Sales/Service revenue is above 100 Lakh/50Lakh(10/5 Million) it is mandatory for the assessee to tax audit done by practicing Chartered accountant in India. (Note:-If an Individual opt for presumptive basic u/s 44AD of Income-tax than Section 44AB not applicable)
- Transfer pricing Audit(U/s 92E):- If There is Transfer pricing applicable on assessee than account needs to be audited by Practicing Chartered accountant.
If an assessee falls under above mention category there books of account need to be audited.
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|Asked: 12/15/18, 4:26 AM|
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|Last updated: 2/2/19, 1:20 AM|