Tax audit vrs audit under company's act
supabcdefgh
(Querist) 08 October 2014
This query is : Resolved
For a Pvt. Ltd. company with following turn over
a) FY 11-12 4 lakhs
b) FY 12-13 0 (Zero)
c) FY 13-14 20 lakhs
Audit under tax is not required, while audit under company's law is required/
What is the practical difference? In company's law, if the lawer is any way checking all details, like bills etc. what is the point of not submitting audit under income tax act?
C. SANJEEVA RAO
(Expert) 09 October 2014
For a Pvt. Ltd Company, getting audit under the provisions prevailed in the Companies Act,1956/2013, which is mandatory, but, in the income tax the provisions are different for getting audit under section 44AB of the Income-tax Act,1961, get the local Chartered Accountant's advice for better appreciation
supabcdefgh
(Querist) 09 October 2014
The benefit of no tax audit is self assessment of bills documents, etc. There is no other benefit. But under company's audit require us exactly these, some more some less, these real benefits are nullified.
This is a contradiction that needs rectification.
C. SANJEEVA RAO
(Expert) 11 October 2014
There is no contradiction, it is clear, the provisions in Companies Act, are applicable to the accounts in light of the sections provided under the companies Act, but, specific and special provisions of the Income-tax Act,1961 applies to the Accounting Standards and other provisions relatable to the allowable expenditure and the incomes.
supabcdefgh
(Querist) 11 October 2014
Sir, if it is not a contradiction, please tell us in clear terms what practical relief do we get in by not doing tax audit and as most of it becomes covered under statutory audit of companies. Use simple words, so that the benefit is clear. To me all documents that was to be shown for tax audit is already shown for the statutory audit.
T. Kalaiselvan, Advocate
(Expert) 14 October 2014
If you re not convinced with the expert's explanation to your query, you may better consult your CA and get the things clarified in a better way by paying his remuneration.
