06 September 2013
Sir, I have doubt whether to include Tax Audit report signed by me for calculation of 45 tax audits in case of an assessee whose turnover is below 1 crore and is showing 5% of net profits and not going for Section 44AD ?
But as per new ITR filing rules, i have to add CA in client's account, so i am just confirming that by adding CA's name in it, won't it consider for 45 no calculation ?
06 September 2013
Yes, you didn't count it for number of tax audits. you can add as a CA for any number of clients it may not restrict you regarding the adding of CA limits.
Suppose i have add CA in 50 clients for 3CD filing in which 20 are below 1 crore turnover and 30 above, so how will they calculated that even though CA is registered for more than 45 3CD filing but only 30 are above 1 crore turnover...
My question is how would they come to know that still i have not crossed my limits?
06 September 2013
Properly i can't say that because of i don't know what is basis of the department to compute such tax audits limits etc.. But while we making tax audit in form 3CD we have to answer a question is assessee is liable for offering income u/s 44AD or 44AE. At this point if the audit is compulsory then we answer it as "NO" (means for one crore/25 lakhs and above turnovers audit) otherwise answer it as "YES". So based on this it may compute your limit.
However number of tax audit limits is prescribed and restricted by the ICAI not by the IT Department. So as a Member of ICAI we have to bound for the ICAI regulations.
So i think IT department may not analyses regarding the limit of tax audits and audits done by each CA on his name(making sign on tax audit report).
Even it analyses then the basis is above i said. So be care full while filling of form 3cd and answering it questions.
CAclubindia
