Is Tax Audit applicable for Pvt Ltd Company For Loss Cases

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This discussion clarifies whether a Private Limited company with a turnover exceeding 1 crore, but incurring a loss and conducting all transactions via banking channels, requires a tax audit. Experts confirm that if all transactions are within the banking system, the 10 crore threshold limit under Section 44AB(1) applies, meaning a tax audit is not mandatory in such loss-making scenarios.

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(Querist)
08 September 2021 Dear Experts,

Is Tax Audit applicable for Pvt Ltd Company For Loss Cases when turnover is 1 crore plus and with no cash payments nor cash receipts. The Company has a Loss. In such a case Can I Apply the 10 crore Threshold Limit and say Tax Audit is not Applicable for the company.

How to handle Companies with Loss .

Thank You for your Valuable Input.

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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
08 September 2021 If all the transactions are with banking channel, the limit for audit u/s. 44AB(1) is 10 Crs. and hence tax audit not applicable.
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A. Christy Vijula

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A. Christy Vijula (Querist)
08 September 2021 Dhirajlal Sir,

Thank you for this clarification. Appreciate your support.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
22 September 2021 My Pleasure ....
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