Home > Experts > Audit > tax vs statutory audit


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


tax vs statutory audit (Audit)

Report Abuse
This query is : Open


( Author )
30 July 2010

Hello expert,
1) What is the diff. b/w tax audit & statutory audit?
2)to whom is tax audit applicable?
3)for a Pvt. ltd. company are both tax & stat. audit applicable?

thanks.
kirti


CMA. CS. Sanjay Gupta

( Expert )
30 July 2010

Statutory Audits are those mandated by a statute. So by that definition even tax audit is a statutory audit.

Statutory audit (under the Companies Act) include statutory financial audit and statutory cost audit. Statutory Financial audit is conducted by a Chartered Accountant and Statutory Cost Audit is conducted by a Cost Accountant. The statutory financial audit is compulsory for all companies where as Statutory cost audit is applicable only to certain industries on fulfilling certain criteria.

Similarly Tax Audit (Section 44 AB) under the Income Tax Act is done by a Chartered Accountant.


CMA. CS. Sanjay Gupta

( Expert )
30 July 2010

For Every company having gross receipts from business of Rs.40 Lacs or more (60 Lacs from FY 2010-11) tax audit is mandatory. But statutory financial audit is mandatory in any case.


Student

( Author )
30 July 2010

sanjay ji,
say if a company has turnover of 2crores then both statutory & tax audit are applicable as gross receipts > 40/60L?

similarly if t/o is 35 lakhs then only statutory audit is applicable......am i correct?

thnx.


CMA. CS. Sanjay Gupta

( Expert )
30 July 2010

Absolutely Correct


Student

( Author )
30 July 2010

thank you sanjay ji!!


CA.ViVeK M ACA

( Expert )
30 July 2010

Statutory audit is conducted under companies act Whereas Tax audit is as per Income tax Act.

There is no turnover or gross receipts concepts for Tax audit(40 lakh for those who carrying on Business and 10 lakh for those who carry on services).



Student

( Author )
31 July 2010

thanks vivek!


Student

( Author )
01 February 2012

Is tax liability worked out & tax deposited under tax audit? or tax audit only involves auditing & reporting under form 3CD?


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :











submit










Quick Links





back to the top