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DEVEN SACHDEVA asked 1 year ago

Sir, Pls clarify answer given for MCQ. no 50 as option (d).

2 Answers
RaviRavi Staff answered 1 year ago

OSK Ltd was incorporated on 15 February 2020. The company chose to prepare its financial statements for the purposes of Companies Act 2013 for the period from 15 February 2020 to 31 March 2021 as its first reporting period. The company had a turnover of INR 6 crore for the period ended 31 March 2020 which is expected to increase to INR 50 crore for the period from 1 April 2020 to 31 March 2021. The company filed its income tax return for the financial year 31 March 2020 before 30 September 2020 i.e. before the due date of filing return of income for the financial year 2019-20 (before considering any extension). The company would prepare its financial statements for the period from 15 February 2020 to 31 March 2021 and would get them audited from its statutory auditors. In this
case, please suggest which of the following would be correct.
(a) The company would be exempt from tax audit for FY 2019-20. For 2020-21, the company would need Form 3CB under tax audit.
(b) The company would be covered under tax audit for the FY 2019-20 and 2020-21. It would need Form 3CA for both these years.
(c) The company would be covered under tax audit for the FY 2019-20 and 2020-21. It would need Form 3CB for both these years.
(d) The company would be covered under tax audit for the FY 2019-20 and 2020-21. It would need Form 3CB for FY 2019-20 and Form 3CA for FY 2020-21.

RaviRavi Staff answered 1 year ago

Company didn’t prepare financial statements for FY 20-21, so they didn’t get there FST audited for 20-21 so they will need FORM 3CB
They made financial statements for 15th Feb 21 to 31st March 22, 15 months is allowed for 1st time, if incorporated between 1st Jan to 31st March, but now income tax wants 1st April 21 to March 22 FST, so for tax company need to prepare FST again from 1st April to 31st March 22 and get it audited in Tax Audit So again we need form 3CB

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