Statutory audit is applicable
Statutory audit is applicable, Whether statutory audit is applicable to a technical consultant depends on the following factors:
1. The nature of the business:
Technical consultants who are engage in the business of providing consultancy services to a single client and the total amount.
Of such services does not exceed Rs. 50 lakhs in a financial year are not require to get their accounts audit.
2. The total gross receipts:
Technical consultants are require to get their accounts audited if their total gross receipts during the financial year exceed Rs. 50 lakhs.
3. The existence of a parent company:
If a technical consultant is a subsidiary of a company that is require to get its accounts audit, then the technical consultant is also require to get their accounts audited.
4. The requirements of the regulatory body:
Some regulatory bodies, such as the Securities and Exchange Board of India (SEBI), may require technical consultants to get their accounts audited even if they do not meet the other criteria.
Here are some steps you can take to ensure that statutory audit is applicable for the technical consultant or not:
1. Consult with a chartered accountant: A chartered accountant can help you to determine whether statutory audit is applicable to your business.
2. Review the Income Tax Act, 1961: The Income Tax Act, 1961 specifies the criteria for which technical consultants are require to get their accounts audit.
3. Review the Companies Act, 2013: The Companies Act, 2013 specifies the criteria for which technical consultants that are companies are require to get their accounts audit.
4. Review the regulations of the regulatory body: If your business is regulate by a regulatory body, such as SEBI, you should review the regulations to determine whether statutory audit is require.
To visit: https://www.incometax.gov.in
