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Maximum tax audit assignments that a CA can accept

Articled Assistant


 

 

1. Maximum no of company audits that a CA can undertake u/s.224(1B)?

 

2. Maximum no of tax audits that can b undertaken as per the council of ICAI?

 

 

 

3. Does sec.224(1B) applies only to public companies, I heard that private companies are not counted for this sec, is that so?

 

 

 

4. Of these how many can b companies having paid up capital of more than 25 lacs?

 

 

Plz make me clear friends

 
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Section 224 (1B) of the Companies Act,1956 specifies the number of audits of public companies which a Chartered Accountant not in full time employment, or a firm of Chartered Accountants, can conduct which is as follows:
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A person can be appointed as an auditor, who is not in full-time employment elsewhere, of a maximum of 20 companies as described below:
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Where some companies have paid-up capital of or more than 25 Lacs, a person can be appointed as auditor of only 20 companies out of which not more than 10 companies can have paid up capital of or exceeding 25 Lacs.
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As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling.
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As per Income tax Act, 1961, maximum number of tax Audits is 45.
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Expert Answer By CA B.Chackrapani Warrier, Most Effective Expert
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2.maximum 45 tax audits

for other quetions read this forum-

 

http://www.caclubindia.com/forum/limit-on-number-of-audits-62328.asp

 
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as far as your query regarding exclusion of private companies from max. number of tax audits is concerned,

it is true because private co. is granted exemption in this regard,,,

 
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Articled Assistant


Thanks a lot Deepak:)

 
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Articled Assistant


Thanks Pavan & Thanks Jain

 
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C.A. B.Com (H) Graduate

agree with deepak gupta.........

 
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according to icai guidelines a ca ca accept max 30 audits incl. pvt companies..

but i guess i has been increased to 45 now...plz check dat

 
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Dear,

The ceiling as per companies act differs vis a vis the restrictions as per CA regulations... as per co. act the above mentioned statements are correct but as per CA regulations the overall cap of 45 audit is there and the restriction of 10 pub. co. with specified capital structure has also to be kept in mind.

Thank you.

 
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Answer to ur questions :

1)Maximun no. of company audit u/s 224(1B) is 20 ( Only public company and no private company included)

2)Maximum no of comapny audit that can be taken as per ICAI council is 30 ( Including private companies)

3)Yes section 224(1B) applies only to public companies and not to private companies.

4) 10 companies should not be more than the paid up capital of rs 25 lakh.

I hope this will clear ur query....

incase of further query u can revert back for the same.....


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