Exemption from branch audit u/s 228(4)
This query is : Resolved
10 November 2013
"For availing exemption from audit of branch 2% of avg of total turnover of co."
Here avg means...???
Nikhil Kaushik
(Expert)
10 November 2013
please refer to explanation to Rule 3 of Companies (Branch Audit Exemption) Rules, 1961.
"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 activ
ity during the relevant financial year. "
"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 activ
ity during the relevant financial year. "
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