Seperate audit or consolidate audit

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This query is : Resolved

Sandeep Agarwal (Querist)

18 September 2012 Mr.A is prop. of Business B at Delhi with Gross turnover of Rs. 40,00,000/- and Mr. A is also Prop. of Business C at Chandigarh with Gross turnover of Rs. 80,00,000/- for F.Y. 2011-12. now my querries are as under:-

1) if NP rate of business B at Delhi is below 8% than whether a consolidated P&L and Balance Sheet would be made for two businesses and would be got audited or separate audit of both the P&L and B/s. would be preferable.

2) If NP rate of business B at Delhi is 8% or above than whether the turnover for audit purposes of A would be treated only 80,00,000/- of business C and if only audit of business C will be sufficient or audit of both the businesse with total turnover of Rs. 1,20,00,000/-would be made.

3) If the turnover of business C is also 40,00,000/- and NP rate of both the businessses is 8% or above than whether or not audit is must.

Amol S Joglekar

Amol S Joglekar (Expert)

18 September 2012 01. Income tax audit is done as per the ENTITY (Definition of person) In your case it is the "individual" who is being income tax audited. So the turnover of both the proprietory businesses shall be considered to decide the LIMIT of turnover. Based on this principle you can now redraft your queries.

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