This audit is required under section 44AB of Income Tax Act. This audit includes reporting in prescribed form 3CA & Annexure in form 3CD.
The scope includes Verification of
- Details of nature of business
- Method of accounting
- Books of account maintained
- Modvat credit availed
- Payment of cash in excess of Rs. 20,000/-
- Proper deduction of TDS & payment of TDS in time
- Dividend Distribution
- Acceptance & Repayment of Loan
- Payment of penalty
- Payment to related parties
- Prior period expenses
- Disallowance u/s 14A etc.
On the basis of this report, the assessing officer takes Decision for tax assessment. The appointment of tax auditor is made by the management.
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