dear members,
i want to ask wether Audits under section 44AD are Covered in number of tax audits of chartered accounted or not??? because we have already 44 audits and 4 audits of 44 AD are pending so wether we are eligable or not for taking these audit, kindly reply

Assessee : Proprietorship Firm
Donation : Rs.6,000.00 to an approved institution notified u/s 80G(5)(vi).
Deduction : Eligible for 50% deduction
Money Reciept : In the name of the firm.

Treatment in the Audited financial statement: It has been shown as an expense(Rs.6,000.00) in P/L with a disclosure in 3CD as regards its deduction under chapter VIA.

Is the treatment correct?

Who can sign the quarterly Limited Review Report ?

Dear Members,

I have a query related to Cost Audit Compliance:

We are a real estate company, engaged in the business selling of properties. We generally hire outside firms and contractors to execute our projects and which they handover to us to sell the same. Neither have we employed any material, labour nor overheads.

We pay to these contractor firms sum equal to their construction cost + their margin. Since we are not employing any material, labour and overhead expenses, we don’t have any costing records related to these constructions. It all lies with these contractor firms.

Does our company cover under cost audit compliance? If not …

How can we claim exemption for these?

Your co-operation will be greatly appreciated.

Thanklng you.

I read through the ICAI publication with respect to internal audit control implementation. In the questionairre format i have the following doubts w.r.t the heading of PURCHASES, RECEIPT OF GOODS AND PAYMENTS FOR INVOICES:
1.Are persons connected with receipt of materials and the keeping of receiving records denied authority to initiate purchases or to approve invoices ?
a) why the receipt of materials keeping person and to approve invoices be denied?
2.(a)Are all suppliers’ invoices routed direct to the Accounts Department ?
Why the suppliers invoices routed direct to the accounts department?

(b)Are they entered in a Bill Register before submitting them to other departments for check and / or approval ?
Why that has to be done as said above?

(c)Are advance and partial payments entered on the invoices before they are submitted to other departments ?
Why it has to be done like the above?

Thanks & Regards,
Rajesh.

Respected Experts,
I read through the internal control questionnaire issued by ICAI in order to ensure that the internal controls in the organisation is good or needs to be improved further. I am not able to understand the following questions , it will be a great help for me if the experts are able to guide me in this issue.
(Given under the heading of Purchases,Receipt of Goods and Payment of Goods)
1.Are purchase orders pre-numbered and strict control exercised over unused forms?
a)Why the purchase orders should be pre-numbered?
b)Why there should be strict control over unused forms?
2.Is a list of pending purchase orders complied by the Purchase Department atleast once every quarter ?
a) In what circumstances pending purchase orders has to be made?
Thanks & Regards,
Rajesh.

CAN CA IN PRACTICE DO THE TAX AUDIT OF HIS FAMILY BIZ..?

sir,
plz clarify me about the turnover limit for tax audit purpose in the case stated below:
if an organisation has a turnover of Rs. 56 Lakhs (excluding all taxes)in the f.year 2011-12, but the turn over including sales tax (i.e. VAT) is Rs. 61 Lakhs and the n/p is more than 8% of Sales, then is the organisation required to be Audited u/s 44AB.

So plz guide me in understanding the term Turn over for Tax Audit purpose; is that including taxes or excluding taxes.

one of my friend having business of milk distribution /supply. but he done turnover of 1.5 cr in last year. as we know there is a 3-4 % profit margin in said business. is there any relaxation given in tax audit to such kind of business.

need your valuable feedback !

Dear Experts ,
There is one bank account which has credit balance , pls tell me where should i classify the same in revised schedule vi.
I will be very grateful if you help me to solve this problem..