Indore: Maximum penalty for failing to conduct tax audit Rs 1.5L

Saraogi said that taxpayers who had done transactions in shares or futures options and have a turnover of more than Rs 10 crore in a year would also have to get tax audit done and maintain the books of accounts. Even if the taxpayer pays income-tax on the basis of estimates while computing the turnover, he will have to include GST in the turnover and tax on GST also assuming 6% or 8% profit.

Staff ReporterUpdated: Wednesday, August 10, 2022, 12:41 AM IST
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Indore (Madhya Pradesh)

September 30 is the last date for conducting tax audit this year and, this time around, there is little hope that the government will extend this date. Thus, it is necessary to conduct the audits in time. The maximum penalty for not conducting the audit by the due date is Rs 1.5 lakh. This penalty is liable to be 0.5% of the turnover or Rs 1.5 lakh, whichever is less.

Pankaj Saraogi said this here on Tuesday as a keynote speaker at a seminar organised jointly by the CA Indore branch and the Tax Practitioners’ Association (TPA). The topic of the seminar was ‘Tax Audit’.

Saraogi said that taxpayers who had done transactions in shares or futures options and have a turnover of more than Rs 10 crore in a year would also have to get tax audit done and maintain the books of accounts. Even if the taxpayer pays income-tax on the basis of estimates while computing the turnover, he will have to include GST in the turnover and tax on GST also assuming 6% or 8% profit.

‘Many businessmen are not yet

maintaining software records’

Kirti Joshi present his views on the GST-related clause implemented this year. He said that provisions related to giving various details of GST, purchases or expenses from registered and unregistered businessmen had been changed and that many businessmen were still not using proper software. If one does not keep records through the medium from which information can be extracted, reporting about this clause will be a difficult task.

‘Audit is a serious subject,

report only after thinking’

TPA president Shailendra Singh Solanki said that, for the first time, such an event was being organised in the city on the subject of Tax Audit. Audit is a very serious matter and, while issuing the report, we should keep in mind all the aspects, especially what the stakeholders expect from us.

Anand Jain, chairman, Indore branch, delivered the welcome address. He said the work of a was increasing with each passing day. Earlier, manual audit reports were used where data could not be compiled. But now, all the data is available with the department in real time. Scrutiny or other notices come on the basis of that report. In such a situation, our responsibility has increased even more. Atishay Khasgiwala conducted the programme.

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