tax audit

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Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2010 In case of tax audit, is there any compulsion to communicate with previous tax auditors in case of Partnership Firms/Propritorship Firms?

And is there any limit on max no. of tax audits? Plz also specify the types of assessee to be included in the limit?

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 May 2010 In case of appointment of an auditor in place previously held by some other person then the auditor should communicate to the previous auditor that whether there is any reason why he should not accept the place of auditor and it applies to all types of audit including tax audit.

The maximum no. of tax audits is 45 tax audit reports including all companies, Partnership Firms, Propritorship Firms, etc.

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2010 communocation required in case of prop. firms also?
communication through telephone is enough or written documents should b there?
plz tel me the procedure

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2010 wat r d consequences of not communicationg wid him?

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 May 2010 Communication must idaeaaly be sent via registered post or via means by which you would get and receipt acknowledgement for receiving of documents.

If not communicated before accepting the audit then the member would be guilty of misconduct as per ICAI rules.

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 May 2010 If not done earlier and if the relations with the previous auditor is good then take the same now in back dated.

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