For the financial year 2022-23 (assessment year 2023-24), the threshold limit governing tax audit report for Spas & Parlor Services stands at Rs. 1 crore.
This implies that if your spa or parlor business achieves a total turnover exceeding Rs. 1 crore during FY 2022-23, the engagement of a chartered accountant to audit your accounts becomes obligatory.
To visit: https://www.incometax.gov.in
The deadline for submitting the tax audit report aligns with the 31st of October in the assessment year following the fiscal year for which the audit is conducted.
In this context, the tax audit report for FY 2022-23 must be filed by 31st October 2023.
Nevertheless, certain exceptions inject flexibility into this rule. Notably, if your spa or parlor business functions as a partnership firm comprising exclusively individual partners, the necessity for accounts auditing is waived.
Similarly, if your business operates as a sole proprietorship and its turnover remains under Rs. 50 lakhs, audit requirement is lifted.
If uncertainty lingers regarding the need for accounts auditing, consulting a chartered accountant is highly recommended.
