Can anyone tell me the difference between Tax Audit & Stautory Audit....Please....
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Diff between tax audit & Statutory Audit
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Audit conducted under companies act is known as statutory audit.
Audit conducted under Section 44AB of the Income Tax Act is known as Tax Audit.
Thanks a lot...
Can anyone tell me the difference between Tax Audit & Stautory Audit....Please....
Audit conducted under companies act is known as statutory audit.
Audit conducted under Section 44AB of the Income Tax Act is known as Tax Audit.
The Statutory (external )audit deals mainly with the examination of the books and financial records of a client firm and reports to the shareholders.Appointed by stakeholders.Stautory Function.Appoinment under Companies ACt
u/s 44AB of Income Tax Persons earning more than Rs. 40 Lakhs, should maintain books of account for the same.
His accounts should be audited by a Chartered Accountant and certify that is called tax audit.Report to Income Tax department (3CA)and details in 3CD in specified format and Return in ITR1-8.This is under Income Tax Act.
Now The statutory limit is Increased to 60 lakhs,for other than profession , For the profession amount is Rs 15 Lakhs
| Originally posted by : gs kumar | ||
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Now The statutory limit is Increased to 60 lakhs,for other than profession , For the profession amount is15 Lakhs U/S 44AB |
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Audit conducted in any STATUE is known as Statutory Audit, even tax audit is a Statutory Audit.
--- Tax audit is a kind of statutory audit which is done under the Income tax act.
Regards:
CA Piyush Goplani
9958544364
These both are colocially used for identifying or classifying different kinds of audits. Statutory audit is an audit conducted as per the requirement or madated under any statute. Tax Audit is one of a statutory audit, which is mandated under Income Tax Act, 1956. An audit conducted to meet the requirements of different laws will have different focus areas and the reporting is also different according the requirement of each law.
statuary audit of an entity is an audit which required by the act underwhich such entity is registered. For example-
a co registered under co act is required an audit by co act.
same for partnership firm under partnership act.
and
Tax audit of an entity is an audit which required by income tax act regardless of
where such entity is registered.
In General terms for a company :-
Statutory Audit : The audit which is compulsory because business entity is a company and there is requirement of compulsory audit of companies under companies act in india.
tax Audit: The audit which is done due to crossing of certain sales/ income / turnover or coming into scope of certain guidelines issues by income tax department.
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