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Questions › Category: Co. Audit - I › Penalty under section 140(3)
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Deepak Kumar BishoyiDeepak Kumar Bishoyi asked 2 years ago

How much is the maximum liability under sec 140(3) in case of continuous violation of provisions of sec 140(2)

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RaviRavi Staff answered 2 years ago

If the auditor does not comply with the provisions of Sec. 140(2), he or it shall be liable to a penalty of Rs 50,000 or an amount equal to the remuneration of the auditor, whichever is less
In case of continuing failure, with further penalty of Rs  500 for each day subject to a maximum of Rs 2 lakh.