suppose if a Mr A is in indebtness of Rs. 4000 but he is using that amount as the advance conveyance charge from the company will in that case and he is using it in progressive basis will he still remain to be appointed as an auditor of the company????????
Reply Plsssss
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 08 June 2010
shrikant kalyani
(CA-Final Student)
(60 Points)
Replied 08 June 2010
He can take advance audit fee towards work done and he'll not be disqualified u/s. 226..
S. 226 says that auditor will be disqualified only when he is indebted to client for more than Rs. 1000 but advance audit fee will not be considered as advance or loan
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 08 June 2010
Hello Shrikant,
I think as per rules Audit fees can be given on progessive basis but set off against debt is not allowed.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 08 June 2010
Kalpesh
CAclubindia
