If tax audit is not applicable then caro apply or not
This query is : Resolved
CA. Naveen Jain
(Querist)
12 October 2011
One of my Client company has turnover of Rs. 7 Lacs and capital is only Rs. 5 Lacs but Secured Loan outstanding is of Rs. 26 Lacs then CARO will applicable or not as TAX audit is not applicable on the company.
CA RICHA BADALIA
(Expert)
12 October 2011
CARO applies to all companies including foreign companies except:-
1.Banking Company
2.Insurance Company
3.Company u/s 25
4. PVT LTD CO. subject to the following condition (1).Aggregate of paid up capital & reserve should not exceed 50Lakhs (2).Loan outstanding from bank or financial institution should not exceed 25 Lakhs (3) Turnover should not exceed 5 crore.
Sir,according to me tax audit is not a criteria for determining applicability of CARO.In your case CARO is applicable.
1.Banking Company
2.Insurance Company
3.Company u/s 25
4. PVT LTD CO. subject to the following condition (1).Aggregate of paid up capital & reserve should not exceed 50Lakhs (2).Loan outstanding from bank or financial institution should not exceed 25 Lakhs (3) Turnover should not exceed 5 crore.
Sir,according to me tax audit is not a criteria for determining applicability of CARO.In your case CARO is applicable.
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