Caro - undisputed statutory dues

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This query is : Resolved

Radhika Singhal (Querist)

04 August 2011 Hello members,

As per CARO, the auditor is to report on the regularity of depositing undisputed statutory dues as at the last day of of the financial year concerned for period of more than six months from the date they become payable.

So, whether non payment of advance tax is also to be reported under this clause which are due before 30.9.2010 for the financial year ending 31.3.2011?

Aditya Maheshwari

Aditya Maheshwari (Expert)

04 August 2011 They could be reported in CARO as u are liable to pay 45% of the tax due by 15th September. However the same is usually not reported as the company does pay the advance tax by March or can show that substantial profit was earned in the later part of the year and so were not liable in the first half to pay tax.

Radhika Singhal

Radhika Singhal (Querist)

04 August 2011 Thanx...............
But genrally in case of companies advance tax is paid on the basis of last financial year earnings as there is a liability on company to deposit tax before due date. Moreover if company fails to pay advance tax on due date then interest is charged.

Aditya Maheshwari

Aditya Maheshwari (Expert)

05 August 2011 Yes we all know that. But the interest does not affect CARO.

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