Question: If there are 10 partners in a firm of Chartered Accountants, then how many tax audits reports can each partner sign in a financial year?
Answer: As per amended Chapter VI of Council General Guidelines, 2008 (Tax Audit Assignments under Section 44AB of the Income Tax Act, 1961), a member of the Institute in practice shall not accept, in a financial year, more than the specified number of tax audit assignments as prescribed under Section 44AB of the Income Tax Act, 1961. The specified number of tax audit assignments under Section 44AB of the Income Tax Act, 1961 is 60.
It is further provided in amended Chapter VI of Council General Guidelines, 2008 that in case of firm of Chartered Accountants in practice, specified number of tax audit assignments means 60 tax audit assignments per partner of the firm, in a financial year.
Therefore, if there are 10 partners in a firm of Chartered Accountants in practice, then all the partners of the firm can collectively sign 600 tax audit reports. This maximum limit of 600 tax audit assignments may be distributed between the partners in any manner whatsoever. For instance, 1 partner can individually sign 600 tax audit reports in case remaining 9 partners are not signing any tax audit report.
It is needless to say that the tax audit assignment should be in accordance with the Standard on Quality Control (SQC) 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Source- ICAI
Republished with Amendments
“In my opinion the above interpretation that one partner can not sign 450 tax audit reports is wrong. The income tax deptt. & ICAI may issue notice for this. The guidelines mentions signatures on 45 tax audits per person.”
I also have the same opinion but iam convinced by the this line of the above explanation “This maximum limit of 450 tax audit assignments may be distributed between the partners in any manner whatsoever.”
Dear Sir
How will the eligibility norms willbe calculated when there is reconstitution of the during the financial year and the incomming and out going partners have already singned more than 45 audit reports each in their respective firms before the change
without any reason? Or reason required
IF HIS TURNOVER BELOW RS. 1 CRORE BUT IT IS NECESSARY TO AUDIT .THAN IT IS COUNTABLE IN 45 OR NOT
In my opinion the above interpretation that one partner can not sign 450 tax audit reports is wrong. The income tax deptt. & ICAI may issue notice for this. The quidelines mentions signatures on 45 tax audits per person.
What are the consequences if a CA exceeds the ceiling limit of 45 ? Recently the hon’ble Supreme Court dismissed the SLP filed by ICAI on the ceiling limit issue. There is an apprehension among CAs that the system will not accept if a CA uploads TAX AUDIT reports in excess of 45. I guess this is a mistaken impression. It is the responsibility of the assessee to get his accounts audited and file returns. The CA’s responsibility to upload the TAX Audit reports is only consequential and procedural. There is no provision in the Income Tax Act, 1961 restricting the number of TAX Audits to 45. It is only a guideline of ICAI. I would like to know the views of the members of ICAI.
kindly clarify – if one partner can upload more than 45 tax audit reports under his individual digital signature where he is signing more than 45 audit reports on behalf of the firm.
Please refer the new guidelines issued by ICAI in 2013
If one CA owns a proprietorship firm with fulltime cop & he is also an partner in other CA firm where he is only haveing fulltime COP how much audit report he can sign