Ceiling Limits of Tax Audit

3605 views

Save Share

CA. Megha Topiwala

Job

1534 Points Posted on 22 September 2009

What shall be the no. of tax audits to be considered 4 calculating ceiling limits 4 a practing CA in the following situation....

The assessee is an individual carring on 5 business in his own name as a prorprietory concern.....

Further a CA he is preparing a combine tax audit report u/s 44AB for all the 5 business by consolidating the b/s n p n l a/c....

Further it is given that all the business are not in the relation of branch n head office ....... it is registered as seperate business under excise as it is carring production in different factory....

Plz let me know whether 4 a ca it will b taken as 5 audits assignments or 1 ?????

Replies (5)

CA.Tarun Maheshwari

CA DISA

7150 Points Posted on 22 September 2009

In case of Individual assessee, the tax audit is carried for him, not for his individual businesses, as the return has to be filed for the individual himself. So a single tax audit report can also be prepared for them . But sometimes CAs prepares different tax audits for different businesses of an individual. In my opinion, a single report must be prepared for individual. The CA is doing correctly and it should be counted as one audit.

As far as number of maximum tax audits is concerned, as per my knowledge it is 45 per CA, but I am not sure about it. Earlier it was 30 but I think it was enhanced to 45 by ICAI.