Branch audit exemption rules
This query is : Resolved
01 November 2013
WHAT IS THE MEANING OF 2% OF AVERAGE OF TOTAL TURNOVER OF THE COMPANY, AS GIVEN IN COMPANIES BRANCH AUDIT EXEMPTION RULES 1961
HOW TO CALUCULATE ABOVE AVERAGE ?
IT IS SAME WAY AS THE AVERAGE CALUCULATED IN RESPECT OF AVERAGE QUANTUM OF ACTIVITY.?
HOW TO CALUCULATE ABOVE AVERAGE ?
IT IS SAME WAY AS THE AVERAGE CALUCULATED IN RESPECT OF AVERAGE QUANTUM OF ACTIVITY.?
02 November 2013
Dear Prasanth,
the explanation to Rule 3 clearly states how the average needs to be computed.
For your reference:
"For the purpose of this rule, the average
quantum of activity shall be taken to be-
(a) the average of the quantum of
activity during the three financial years
immediately preceding the relevant financial year, or
(b) if three financial years have not been completed since the establishment of the
branch office the average of the quantum
of activity during the two financial
years or, as the case may be, the quantum of activity during the year, immediately preceding the relevant financial year, or
(c) in other cases, the quantum of activity during the relevant financial year.
the explanation to Rule 3 clearly states how the average needs to be computed.
For your reference:
"For the purpose of this rule, the average
quantum of activity shall be taken to be-
(a) the average of the quantum of
activity during the three financial years
immediately preceding the relevant financial year, or
(b) if three financial years have not been completed since the establishment of the
branch office the average of the quantum
of activity during the two financial
years or, as the case may be, the quantum of activity during the year, immediately preceding the relevant financial year, or
(c) in other cases, the quantum of activity during the relevant financial year.
04 November 2013
sir
the avg quantum of activity is to be compared with the highest of rs2lacs or 2% of avg total turnover of company, to decide the examption status.
i understood the avg quantum of activity calculation but my query is how to calculate 2% of avg total turnover of company ? is it the same 3 years as in case of avg quantum of activity ?
the avg quantum of activity is to be compared with the highest of rs2lacs or 2% of avg total turnover of company, to decide the examption status.
i understood the avg quantum of activity calculation but my query is how to calculate 2% of avg total turnover of company ? is it the same 3 years as in case of avg quantum of activity ?
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