As per news coming from reliable sources, the Ministry of Corporate Affairs (MCA) might do away with Statutory Audit as per the Companies Act 2013 for small companies. This decision to do away with statutory audit for small companies is proposed considering the ease of doing business for the taxpayers.
It is pertinent to mention here that in order to promote ease of doing business the Turnover limit of Tax Audit under Income Tax Act, 1961 was increased, thereafter the GST Audit was abolished from FY 2020-21 onwards. In continuation of above steps it now being proposed to do away with Statutory Audit for certain classes of companies viz small companies.
As per reliable sources, Companies with paid-up capital of up to Rs. 2 crore and Turnover of up to Rs. 20 crore are small companies and benefit of audit abilition may be provided to them from next Financial year.
This news has been confirmed by CNBC Awaaz vide its following tweet:
The abolition of Statutory Audit for small companies will come as another blow to the CA profession as then such companies will no more require to conduct statutory audit of their financial statements from a Chartered Accountant. Rather the CMD / Director(s) of the company will be able to self-certify the financials and upload the same on MCA / ROC portal.
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