about audit of building association

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chintan sodha (Querist)
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01 November 2007 hellow to every one who reply
our firm has construct a commercial complex before 3 to 4 years. each office of the complex is rented or sold. in rented office we are taking deposit against that.
our firm has maintain seprate books for the same and i want to know that our firm has to required to audit or not for the same and if yes than under what section

ok thanks for the reply in advance

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
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02 November 2007 Dear Sir

When your taxable turnover from business income crosses Rs 40 lakhs per annum you have to get your accounts audited. In your question there is no indication of the turnover (It is difficult to maintain that your income is just house property (ancillary)income when you do not have any main business than this).

Moreover one has to assume from the word 'firm' used by you that yours is a partnership firm/prop concern. If yours is a company registered under companies act you have audit definitely under section 224 of the Companies Act 956.

o.velavan

o.velavan (Expert)
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04 November 2007 For rental income tax audit may not be applicable.

But if your turnover from sale of office exceeds Rs 40.00 lakh you are liable for tax audit.

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