Statutory Audit is Applicable for Wholesaler
To determine whether a statutory audit is applicable for wholesaler in India, you need to consider certain factors. A statutory audit is a legally requir examination of a company’s financial records to ensure accuracy and compliance with the law.
Here’s how you can assess the applicability of a statutory audit for a wholesaler:
1. Turnover Threshold:
In India, the Companies Act, 2013, mandates a statutory audit for companies whose turnover exceeds a specified threshold.
As of my last update in September 2021, this threshold was Rs. 1 crore. If a wholesaler’s annual turnover exceeds this amount, a statutory audit is likely to applicable.
2. Nature of Business:
The nature of the wholesale business matters. If the wholesaler deals with items that sensitive, regulated, or have legal restrictions, a statutory audit might be requir even if the turnover is below the threshold. This is to ensure that all transactions are transparent and compliant.
3. Legal Entity Type:
Different legal entity types have varying statutory audit requirements. Private limited companies and public limited companies are typically required to undergo statutory audits.
However, other types of businesses might also be subject to such audits depending on their legal structure.
To ensure whether a statutory audit is applicable for a wholesaler in India, you should consider the turnover, nature of business, and the legal entity type. Consulting with a qualified chartered accountant or tax professional is highly recommended to get accurate and up-to-date guidance.
To visit: https://www.incometax.gov.in
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