CA Turnover Certificate 

There are many modes of certificate issued by Chartered Accountants. A Turnover certificate is issued by a Chartered Accountant which certifies total turnover for a given period. Turnover certificate gives assurance that the entity has turnover of the amount specified in the certificate. Turnover given in the certificate can be for one year for more than one year depending on requirement.

This article gives information about the Turnover Certificate issued by CA, its uses and procedureand format , etc.

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What is CA Turnover Certificate?

A Turnover certificate is a factual statement certifying turnover of an entity as per Income Tax Return or GST Return or as per requirements. It is a dependable document about business transactions within that specified period. It is to be noted that figures mentioned in the Turnover Certificate are approximated and auditors should also note this.

Details and contents of Turnover Certificate related to one specific business entity which has its separate books of accounts. While calculating turnover for one single certificate or working for Turnover Certificate of one specific entity details of its sister concerns or subsidiary entities are not taken into account.

As per guidance note issued ,a Chartered Accountant is required to provide either reasonable assurance or limited assurance. It is not possible for practitioners (CA) to reduce risk to zero because of inherent limitations of CA.

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Process to get Turnover Certificate by Chartered Accountant

Obtaining a Turnover Certificate is a simple and straight forward process. Steps involved in getting Turnover Certificate by Chartered Accountant are as follows :-

i) Submit required documents and details to Chartered Accountants such as- PAN, GST return,

Financial statements, ITR for h=given years, etc.

ii) Chartered Accountant will verify the details submitted

iii) Draft of certificate is sent for confirmation

iv) On receiving confirmation, CA will issue final signed certified copy of Turnover Certificate

CA will issue a Turnover Certificate after conducting a precise and strict audit of the business entity. And in case the auditor finds any discrepancies, he should suggest accounting adjustments to the entity.

Whenever CA is required to issue Certificate for any special purpose like Turnover Certificate, CA needs to do full evaluation of scope of engagement.

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Requirement of Turnover Certificate by Chartered Accountant:

1. By Banks or financial institutions for loan
2. By investors while investing fund in entity
3. To open current account in banks
4. While participating in bids by various businesses, local governments, etc.
5. To participate in tenders issued by various companies
6. For Export Turnover & performance

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Contents of Turnover Certificate by Chartered Accountant:

Contents and format of Turnover Certificate by CA differs based on requirements and purpose for which certificate is being issued. Basic Turnover certificate for any purpose will contain following details:-

i) Name and address of business

ii) Registration under respective Act details

iii) Purpose of turnover certificate

iv) Period of certificate

v) Records examined during the course of issuance of certificate

vi) Details about the party by whom the certificate is issued or referred

vii)Turnover calculation method used

viii) Details of the practicing professional

ix) UDIN of certifying CA

x) Any other information, as required.

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Who can issue Turnover Certificate ?

A Chartered Accountant only can issue a Turnover certificate that provides assurance to its users about turnover of the entity. Also it is mandatory to give details of chartered accountant and UDIN on certificate.

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Fees charged for Turnover Certificate by CA

Fees charged for certificates depend on turnover, no of years considered in certificate and entity structure ,etc. But generally fees charged by CA to issue Turnover certificate is around Rs. 3000 to Rs.7000.

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Format of Turnover Certificate issued by CA 

Below mentioned format of Turnover Certificate is basic format, and it may change depending on purpose and requirements of Turnover Certificate –

TO WHOMSOEVER IT MAY CONCERN

 

We have verified the books of accounts and related documents M/S _____________________ having PAN : ______ and GSTN : ________ and situated at  _______________ and on verification of records, we hereby certify that Average Annual turnover  of this mentioned entity during last three financial year are as under-

 

Sr. No.	Financial Year	Total Turnover  (in Rs.)
1
2
3
Total
Average Annual Turnover of last three years

 

The turnover certified above, is in line with the turnover declared by the entity in their Income-tax Returns filed under PAN No. ___________.

This turnover verification certificate is being issued upon their request to be used for _________(purpose of certificate).it may serve them.

 

For ____________________ (Chartered Accountants)

FRN: ___________

(Partner) M.N. ________

UDIN __________

 

Sign and seal of Chartered Accountant

Place : _________

Date : __________

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