Audit of pvt. ltd. company

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This query is : Resolved

Monika Gupta (Querist)

02 January 2014 Sir,

There is a Pvt. Ltd.company having turnover of Rs around 47 Lac, whose audit has not yet been done for the AY 2013-14. My queries relating to it are:

1. Whether this co. will be covered in Tax Audit?
2. What penalty will be levied for late furnishing of audit report and under what section ?

CA.Chandankumar

CA.Chandankumar (Expert)

02 January 2014 Dear Friend,
Please follow the below link for the above queries :
https://www.charteredclub.com/tax-audit/

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sahil jain

sahil jain (Expert)

02 January 2014 Hi Monika

1. Tax audit is required in case the turnover of a company exceeds 1 crore as per amended section 44AB and as per the information furnished by you your client is having a turnover of 47 lacs, hence there is not requirement of Tax audit.

2. Now as regards your second query- In case of late furnishing or non furnishing of audit report penalty under section 271B is applicable which is a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred fifty thousand rupees, whichever is less.

Monika Gupta

Monika Gupta (Querist)

02 January 2014 But section 271B is applicable for Tax audit.
In case of mine, there is only a statutory audit and no Tax audit.

sahil jain

sahil jain (Expert)

02 January 2014 Yes, the query you asked for pertains to tax audit only.

Monika Gupta

Monika Gupta (Querist)

02 January 2014 I want to know whether this penalty u/s 271B will be covered in statutory audit????

sahil jain

sahil jain (Expert)

02 January 2014 Section 271B pertains to Income tax as regards statutory audit you need to refer the new companies act