Audit

Stat Audit 636 views 5 replies

Whether a newly registered private limited being in existence for 5 months on FY 2010-2011 and no business activity should go for audit u/s. 44AB or wherther it can file the ITR-6 without mentioning the auditor details if audit is not applicable???????

Replies (5)

every co whether private OR Public required to audit his account.

no business then why audit u/s44AB

Think from shareholders/stakeholders point of view. There is a clear separation of ownership and management.

Now, the management knows there was no busniess carried out but what about the stakeholders??? The assertion of the management that there was no business, is to be auditied by the auditor so that the owners of the business can rely upon the financial statements so presented by the management.

every company registered under the Companies Act 1956 is liable to statutory audit under the said Act. Tax Audit under section 44AB is different. In case of business concern It is mandatory in case where gross receipts, turover or sales as the case may be exceeds Rs.60 lacs in that financial year.

so in this case company is liable to audit under companies act. it does not make any difference that company has not commenced business yet.

Audit Under Companies Act: Compulsory

Audit under Income Tax Act: Not required.

 

in ITR check the option:- Audit under section 44AB not applicable. no need to mention auditor's detail. because audit not conducted.
 


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