29 November 2012
A Firm has not registered under Central Excise although its turnover was Rs 2 crore as on 31.03.2011 and 2.5 crore on 31.03.2012.
And in A.Y 2011.12 Audit Report the first CA has not point out this in his Audit Report. Now the Client insisting me not to disclose in my audit report for 2012.13 as he was not aware of the provision of Central Excise. Sir Pls suggest what are the remedies for this and If I do not disclose in my Audit Report then how can I safe guard myself
29 November 2012
There may be duty liability. Non disclosure amounts to suppression of fact and consequently abetment. Remedy: Advise client to voluntary disclose and pay duty thereby avoid penalty and further interest liability.
CAclubindia
