Limit for Balance Sheet
The threshold limit for balance sheet reporting varies depending on the nature of the business.
For Architectural, Engineering, and Surveying Services in India, the threshold limit determines whether the business is required to get its accounts audited under the Income Tax Act.
1.Threshold Limit Explanation:
In the context of Architectural, Engineering, and Surveying Services, the threshold limits for balance sheet reporting refers to the maximum total turnover beyond which the business can obligate to undergo a mandatory audit of its accounts.
The threshold limit for businesses falling under this category set at ₹1 crore (Indian Rupees One Crore).
2.Balance Sheet Auditing:
If a business’s turnover exceeds the prescribed threshold limits (₹1 crore in this case), it becomes mandatory for the business to get its accounts audit by a Chartered Accountant.
The audited financial statements, including the balance sheet, need to submit along with the Income Tax Return (ITR).
3. Importance of Auditing:
Auditing of the balance sheet and financial statements ensures transparency, accuracy, and compliance with taxation regulations.
It helps in detecting errors, irregularities, and potential tax discrepancies, thereby maintaining the integrity of financial reporting.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com