Statutory audits are generally not mandatory for interior designers unless they meet certain financial thresholds or legal requirements. These audit are conducted to ensure the accuracy of financial statements and compliance with relevant laws and regulations. Interior designers, as service providers, might not typically fall under the same level of financial complexity as companies with significant turnovers.
It depends on the interior designer’s gross receipts or turnover.
1. Interior designers whose gross receipts or turnover exceeds Rs. 1 crore in a financial year are required to get their accounts audited by a chartered accountant. This is under Section 44AB of the Income Tax Act.
2. Interior designers whose gross receipts or turnover is less than Rs. 1 crore in a financial year do not require to get their accounts audit. However, they may still audit by the Income Tax Department if they have reason to believe that the interior designer has evaded tax or has not complied with the Income Tax Act.
So, If an interior designer require to get their accounts audited, they must appoint a chartered accountant to conduct the audit. Basically, The chartered accountant will review the interior designer’s financial records and tax returns to ensure that they are accurate and compliant with the Income Tax Act.
For further details access our website: https://vibrantfinserv.com
To visit: https://www.mca.gov.in/
