Ceiling limit of tax audit on chartered accountants

This query is : Resolved

Digbijoy Ghosh (Querist)
Follow

23 August 2013 Please help me by intimation the Tax Audit Limit of a C.A. for the Asst. Year 2013-2014 for West Bengal & Assam or its all same for the country by ICAI.
Becoz my C.A. said their is no limit under 1 crore turnover but one C.A. can only sign 45 Tax Audits over turnover of 1 crore.

Thanks in advance
Digbijoy Ghosh
IT Lawyer
West Bengal.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

23 August 2013 Yes, your CA is correct. For one CA tax audit reports issuing limit is 45 only. for this purpose the tax audits which is compulsory as per section 44AB only shall consider.

For example: A Ltd has a turnover of Rs.1.50 crores for A.Y 2013-14, so he his liable for tax audit u/s 44AB

And B Ltd has a turnover of Rs.90 lacs so it is liable for section 44AD. i.e has to offer minimum income of 8% on turnover(90 lacs). But it offering lower income than 8% i.e means it is liable for tax audit u/s 44AB but according to the section 44AD(i.e due to the offering of lower income than section 44AD the provision of this section creating tax audit liability u/s 44AB but section 44AB directly doesn't creating tax audit liability)

So A Ltd shall consider for the purpose of counting of limit of 45 tax audits and B Ltd didn't consider for number count because it is option of the assessee not compulsory as per the ACT.

OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok