LLP required to get its books of accounts audited by practicing Chartered Accountant if its turnover crosses limit for FY 2022-23 under business is Rs. 10 Cr with cash transaction limit and in case of Professional Services sales Rs. 50 lac. Tax audit is statutory obligation its been conducted by Chartered Accountant to check all prevision of Law follow , if any tax liability pending etc. Tax Audit is examination of LLP books of accounts , other applicable tax compliance , checking depreciation calculation etc. Its proper presentation of financial statement to Government authorities.
Business can be of two nature one is trading , manufacturing or retail sales of goods and other is providing services business. Under Section 44AB of the Income Tax Act 1961 , Turnover Criteria for Audit of LLP is defined as per nature of sales where is sales of goods or sales of Professional services.
|M/s ABC LLP having nature of business as distribution of Pharmaceutical products and for FY 2022-23 LLP turnover is 12.5 Cr . As LLP Turnover crossing > Rs. 10 Cr . Tax Audit applicable.
|M/s XYZ LLP having nature of business as architecture design services and for FY 2022-23 LLP turnover is 75 Lac . As LLP Turnover under professional criteria crossing > Rs. 50 Cr . Tax Audit applicable
Under section 44AB of the Act every LLP carrying on business is required to get his accounts audited if turnover crosses above limit. LLP Tax Audit due date for FY 2021-22 is 30 September 2022. For AY 2022-23 LLP tax audit due date is 30 September 2022.
However, Section 273B tax audit can be filed audit due. There is no penalty shall be levied under section 271B if firm proves there is a reasonable cause of such no filing, which causes are accept by Tribunals/Courts as reasonable Cause are:
Under Tax audit , Chartered Accountant prepare audit report in Form 3CA/3CB and 3CD. These audit reported need to be filed online at Income tax Site. For filing of Tax audit report of LLP , Digital Signature of authorized partner is required. Due to online filing of audit report digital signature is mandatory.