What is penalty for delayed audit?

Tax queries 522 views 2 replies

P Kahyap

Others

50 Points Posted on 10 January 2015

My CA is yet to audit my income of financial year 2013-2014 due to some lack of invoices that he asked all of sudden just couple of days back of 31st november which was I think last day of Audit (as per my accountant words)

Now today I was able to produce that invoices and papers in front of him, I would like to ask now what penalty I will have to bear for this delayed audit? Is there any workaround to make it not applicable? my total turnover is 2 CR+ so audit is must thats for sure. But you guys know more than me , any help will be appreciated.

Replies (2)

CA Harsh Kothari

Consultant

302 Points Posted on 11 January 2015

Dear P Kashyap, To know when the auditor asked for invoices, you should go through the Email trail between your auditor and accountant. Further, the due date for filing of tax audit report for FY 2013-14 was 30th November. There is no provision in the Act per se dealing with penalty on delay in filing of tax audit report. But as per section 271B of the Act, failure to get accounts audited and furnish a report as required under section 44AB of the Act may attract penalty as under- a) 0.5% of the total sales, turnover or gross receipts of the business or profession ; or b) 150,000, whichever is less. However, this penalty may be waived under section 273B if the assessee proves that there was reasonable cause for the said failure. Request other experienced experts to share their knowledge.