Tax audit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2012
Dear Sir,
Can Indian Chartered Accountant do Tax Audit of Irish man ( Ireland ). And if Yes, then Balance sheet of him should be made in Euro or in Indian currency ? Can Indian Chartered Accountant can sign the Balance sheet in Euro ?
Its Very URGENT.....!!!!
Can Indian Chartered Accountant do Tax Audit of Irish man ( Ireland ). And if Yes, then Balance sheet of him should be made in Euro or in Indian currency ? Can Indian Chartered Accountant can sign the Balance sheet in Euro ?
Its Very URGENT.....!!!!
07 September 2012
IF HE BUSINESS AT INDIA THEN HE SHOULD BE SIGNED. OTHER WISE IRELAND GOVT. RULES WISE EFFECTED
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2012
His bank accuont transaction is in Euro... Expences made in Euro.. Receipts made in Cash... Now, What to do?????
26 July 2025
Here’s a clear response to your urgent query:
---
### Can an Indian Chartered Accountant (CA) do Tax Audit for an Irish Individual?
* **If the Irish individual has business operations or taxable presence in India**, then yes, an Indian CA **can perform the tax audit for the Indian tax purposes** under Indian laws.
* Tax audit under **Section 44AB** of the Income Tax Act applies only if the person has taxable business or profession in India.
---
### Regarding the Balance Sheet currency and signing:
* The **financial statements for Indian tax purposes should be prepared in Indian Rupees (INR)** as per Indian Accounting Standards and tax laws.
* The Indian CA **cannot sign the Balance Sheet in Euro** for Indian tax audit purposes.
* The foreign currency transactions should be **converted into INR** using appropriate RBI/Income Tax notified exchange rates as on the relevant date (e.g., date of transaction or financial year-end).
---
### How to handle transactions in Euro and cash receipts:
* All foreign currency transactions (receipts and expenses) must be **recorded in INR by converting the amounts at the prescribed exchange rate**.
* Cash receipts should also be converted into INR on the date of receipt.
* Maintain proper documentation and conversion details for audit and tax compliance.
---
### Summary:
| Question | Answer |
| -------------------------------------------- | ---------------------------------------------- |
| Can Indian CA do audit for Irish individual? | Yes, if he has business presence in India |
| Balance Sheet currency | Prepare and sign in Indian Rupees (INR) |
| Can balance sheet be signed in Euro? | No, must be in INR |
| How to handle Euro transactions | Convert all to INR at prescribed exchange rate |
---
If you need, I can guide you on the exchange rate methods or provide a sample of journal entries for foreign currency conversion. Just let me know!
---
### Can an Indian Chartered Accountant (CA) do Tax Audit for an Irish Individual?
* **If the Irish individual has business operations or taxable presence in India**, then yes, an Indian CA **can perform the tax audit for the Indian tax purposes** under Indian laws.
* Tax audit under **Section 44AB** of the Income Tax Act applies only if the person has taxable business or profession in India.
---
### Regarding the Balance Sheet currency and signing:
* The **financial statements for Indian tax purposes should be prepared in Indian Rupees (INR)** as per Indian Accounting Standards and tax laws.
* The Indian CA **cannot sign the Balance Sheet in Euro** for Indian tax audit purposes.
* The foreign currency transactions should be **converted into INR** using appropriate RBI/Income Tax notified exchange rates as on the relevant date (e.g., date of transaction or financial year-end).
---
### How to handle transactions in Euro and cash receipts:
* All foreign currency transactions (receipts and expenses) must be **recorded in INR by converting the amounts at the prescribed exchange rate**.
* Cash receipts should also be converted into INR on the date of receipt.
* Maintain proper documentation and conversion details for audit and tax compliance.
---
### Summary:
| Question | Answer |
| -------------------------------------------- | ---------------------------------------------- |
| Can Indian CA do audit for Irish individual? | Yes, if he has business presence in India |
| Balance Sheet currency | Prepare and sign in Indian Rupees (INR) |
| Can balance sheet be signed in Euro? | No, must be in INR |
| How to handle Euro transactions | Convert all to INR at prescribed exchange rate |
---
If you need, I can guide you on the exchange rate methods or provide a sample of journal entries for foreign currency conversion. Just let me know!
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