No need to audit firms with a turnover of till Rs 5 crore

Others 1098 views 3 replies

Ashwani Kumar

Founder

23 Points Posted on 11 February 2020

I am the co-founder of a knowledge services company based in Noida with annual turnover of less than 1.5 crore. As per the recent budget it was mentioned that "there will be no need to audit firms with a turnover of till Rs 5 crore. No CA certification would be needed". My question is:

does this mean that starting this fiscal there is no need for my company to be audited?
what does CA certification mean exactly?
And finally is it possible for me to pay my company taxes like 92B and 94J without taking the help of my CA? If yes, how do I get this done?

We are a small team of 5 employees.

Thanks is advance!

Ashwani

Replies (3)

sujith kumar dasa

banglore

1496 Points Posted on 11 February 2020

Firstly you didn't mention the nature of business i.e., sole proprietorship or partnership or LLP or company.

Secondly as per provisions of Income Tax every person having turnover more than two crore in case of goods and 50L in case of services is liable for audit by a chartered Accountant.

Thirdly the exemption given in budget is for Sole proprietorship/HUF having turnover upto 5 crores and having 95% of business transactions through bank.

Fourthly even though the exemption is given there is a catch in Section 44AD as per which in case of services there should be minimum profit of 50% of turnover otherwise audit by CA is mandatory.

Yes TDS returns can be filed by any person and it need not be by a CA

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 11 February 2020

@ Mr Ashwani Kumar.,

Yes... You are exactly correct.

But, it's (may be) applicable from AY 2021-22 after issuing notifications by CBDT...

It's not only applicable Proprietorship/Huf....

It's applicable to MSME (Medium, Small, and Micro Enterprise).

Otherwise as per sec 44AB Tax audit limit Rs 1cr.... Not, 2cr u/s 44ab...