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What is procedure to covert audit firm into regular firm

04 May 2021

my turnover during fy 20/21 was below 1cr that is only 75 lakh. I had followed all tds procedure during that financial year. Now I think that due to such covid situation in India my turnover in current will not be more then 60 lakh. now I want to convert my audit firm into regular firm.what is procedure please help.

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7 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 04 May 2021

Audit firm means you have a ca firm or any other business??

RENU SHARMA (1388 Points)
Replied 04 May 2021

Can you please elaborate

Tejpal Jain (197 Points)
Replied 04 May 2021

Business firm sale and purchase of goods

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 04 May 2021

Whether your query is about tax audit or something else??

Tejpal Jain (197 Points)
Replied 04 May 2021

Tax audit

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 04 May 2021

If your Turnover is less than 5 crores rupees and your payments and receipts is limited to 5% of total gross payments and receipts in cash then tax audit is not required and if your receipts and payments is greater than 5% of payments and receipts in cash then turnover limit will be 1 crores rupees and in case turnover is less than 1 crores rupees tax audit is not applicable.

In case of presumptive taxation if your turnover is less than 2 crores rupees and profit is 8% of turnover then tax audit is not applicable