Tax Audit for Restaurants and Hotels

The threshold limit and due date of tax audit report for restaurants or hotels depends on the annual turnover of the establishment:

1. If the annual turnover is less than Rs. 1 crore, the threshold limit is Rs. 5 lakh. The due date for filing the tax audit report is 30th September of the following year.

2. If the annual turnover is between Rs. 1 crore and Rs. 5 crore, the threshold limit is Rs. 10 lakh. The due date for filing the tax audit report is 31st December of the following year.

3. If the annual turnover is more than Rs. 5 crore, the threshold limit is Rs. 25 lakh. The due date for filing the tax audit report is 31st March of the following year.

It is important to note that these are just the threshold limits. Even if the annual turnover of a restaurant or hotel is below the threshold limit, it may still be required to get its accounts audited if the tax authorities have any reason to believe that there may be tax evasion.

To visit: https://www.mca.gov.in/

Here are some of the reasons why a restaurant or hotel may be required to get its accounts audited even if its annual turnover is below the threshold limit:

1. If the restaurant or hotel has been involved in any tax disputes in the past.

2. If the restaurant or hotel has been inspected by the tax authorities and any discrepancies have been found.

3. If the restaurant or hotel has been making large cash payments.

4. If the restaurant or hotel has been operating in a tax haven.

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