The proprietor has last filed return and tax audit report in FY 2011-12 and thereafter has not filed any details. In FY 2014-15, the proprietor wants to conduct tax audit then in such case which opening balances need to be taken and what needs to be reported under tax audit report by Auditor?
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Tax audit
Replies (6)
Opening balance as on 1-4-2014 has to be taken only. Although no return have been filed between FY 2011-12 till date, I am assuming, books of accounts were atleast maintained.
Besides, do check applicability of tax audit u/s 44AB. If applicable, the report clearly mentions the areas to be looked into.
Appreciate your prompt reply.
The proprietor has not maintained any accounts post 2011-12. So I believe whether comments/ qualifications regarding the same if given in the report would suffice??
Has he maintained books in fy 2014-15?
The criteria for maintaining books has to be complied with first.
Check if turnover is >10 lakhs.
If yes, then maintain books and check if it exceeds 1 cr.
Books have been maintained in 2011-12. Thereafter directly in 2014-15 and turnover crosses 1 cr mark.
Are you saying, there was no requirement to maintain books in the interim periods? That's not possible coz you already have done audit in 2011-12. that means, for FY 2012-13, 2013-14 and 2014-15 you were required to maintain books. Seems like you defaulted.
Better start gatheing whatever info you can about earlier years and atleast make a draft books of accounts for the interim periods.
Then you may take opening balance as per those books.
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