401, SURESH SADAN, DAULAT NAGAR, ROAD NO 4, BORIVALI EAST MUMBAI
AUDIT & ASSURANCE SERVICES
STATUTORY AUDIT UNDER COMPANIES ACT
INCOME TAX AUDIT UNDER INCOME TAX ACT
INCOME TAX AUDIT UNDER INCOME TAX ACT
INCOME TAX AUDIT UNDER INCOME TAX ACT
INCOME TAX AUDIT UNDER INCOME TAX ACT
INCOME TAX AUDIT UNDER INCOME TAX ACT
CO-OPERATIVE SOCIETY AUDIT
CO-OPERATIVE SOCIETY AUDIT
CO-OPERATIVE SOCIETY AUDIT
- Housing Societies
TRUST AUDIT
CO-OPERATIVE SOCIETY AUDIT
TRUST AUDIT
- Rule 17B Sec. 12A(b) For religious & Charitable Trust
- Rule 16CC under section 10(23C) in case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution
STATUTORY AUDIT
Additional Information
As per Companies Act 2013, Board & Management are responsible for
- maintenance of books of account & related records,
- laying down effective accounting policies & internal controls,
- preparation of annual financial statements,
- compliance with the accounting standards,
- maintenance of cost accounting records & preparation of cost statements, and
- ensuring compliance with various laws in the country.
The auditor provides independent assurance to all stakeholders about the truth & fairness of the entity’s statements & other disclosures and to report by exception on all other requirements as prescribed under the law.
INCOME TAX AUDIT
Additional Information
As the name suggests tax audit is an examination of books of account of any business or profession from a tax compliance viewpoint. It involves the assessment of income tax returns, deductions claimed, income earned, and other provisions of the income tax act.
Applicability of Tax Audit under section 44AB
A taxpayer must mandatorily undergo a tax audit of his/ her books of accounts if the sales, turnover, or gross receipts exceeds Rs 1 crore in a financial year.
The threshold limit of Rs 1 crore is proposed to be increased to Rs 10 crores. The following condition applies to the taxpayer’s cash receipts and payment:
- cash receipts are limited to 5% of the gross receipts or turnover
- cash payments are limited to 5% of the aggregate payments
A taxpayer might have to comply with tax audit provisions under other scenarios as well. The following are all such scenarios in which an income tax audit is mandatory:
A taxpayer who engages in business in the financial year
Carrying on business (Taxpayer does not opt for presumptive taxation scheme) - Total sales, turnover or gross receipts exceed Rs 1 crore in the FY
Carrying on business. The business is eligible for presumptive taxation under Section 44AE, 44BB or 44BBB - The taxpayer claims profits or gains which is less than the prescribed limit. The limit under the presumptive taxation scheme of Section 44AE, 44BB or 44BBB.
A person who is carrying on a business that is eligible for presumptive taxation under Section 44AD - The taxpayer declares taxable income that is less than the prescribed limit. The limit under the presumptive taxation scheme of Section 44AD. Additionally, the income exceeds the basic threshold limit
Carrying on the business and is not eligible to claim presumptive taxation under Section 44AD. The reason is opting out of the presumptive taxation in any one financial year. The opt-out is made in any of the financial years of the lock-in period of 5 consecutive years from the year the presumptive tax scheme was opted for the first time - If income exceeds the maximum amount not chargeable to tax in the subsequent 5 consecutive tax years from the financial year when the presumptive taxation was not opted for.
Carrying on business and declaring profits as per presumptive taxation scheme under Section 44AD - Total sales, turnover or gross receipts is less than Rs 2 crore in the financial year
A taxpayer who engages in a profession in the financial year
Carrying on Profession - Total gross receipts exceed Rs 75 lakh in the financial year
Carrying on Profession. The business is eligible for presumptive taxation under Section 44ADA - The taxpayer claims profits or gains which is less than the prescribed limit u/s 44ADA. The total income exceeds the basic exemption limit. Example- Rs 300000 is the basic exemption limit for individual taxpayers not being a senior citizen.
Loss from carrying on a business. The taxpayer does not opt for a presumptive scheme - Total sales, turnover, or gross receipts exceed Rs 1 crore
The total income exceeds the basic exemption limit Loss from carrying on a business. The taxpayer does not opt for a presumptive scheme - The loss is from a business that has a total income that exceeds the basic exemption limit
The total income does not exceed the basic exemption limit Loss from carrying on a business The taxpayer opts for a presumptive scheme u/s 44AD - Tax audit is not applicable
Loss from carrying on a business. The taxpayer does not opt for a presumptive scheme u/s 44AD The total income exceeds the basic exemption limit - Total Income exceeds the basic exemption limit Taxable income below the limits prescribed under the presumptive tax scheme
INTERNAL AUDIT
Additional Information
Internal audit is an independent management function, which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity, including the entity’s strategic risk management and internal control system. Internal audit, therefore, provides assurance that there is transparency in reporting, as a part of good governance
As per Rule 13 of Companies (Accounts) Rules, 2014, the following class of companies shall be required to appoint an internal auditor or a firm of internal auditors, namely:
A) every listed company,
B) every unlisted public company having:
(i) paid up share capital of fifty crore rupees or more during the preceding financial year; or
(ii) turnover of two hundred crore rupees or more during the preceding financial year; or
(iii) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or
(iv) outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and
C) every private company having:
(i) turnover of two hundred crore rupees or more during the preceding financial year; or
(ii) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year.
For the purpose of above Rule 13, the internal auditor may or may not be an employee of the company and the term 'Chartered Accountant' shall mean a Chartered Accountant whether engaged in practice or not. As per this rule, the Audit Committee of the company or the Board shall, in consultation with Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit.