Industry-Service Focus

Professional & Freelance Services Sector Solutions: Statutory & Tax Audit

Integrated Chartered Accountant advisory models targeting regulatory filing requirements for Professional & Freelance Services entities via specialized Statutory & Tax Audit audits.

Understanding the Professional & Freelance Services Sector

Every industry carries specific risk structures, inventory pipelines, and compliance regimes. For companies operating in the Professional & Freelance Services field, regular audits and tax optimizations must align with the corresponding business operational pace.

Tax Planning & Compliance for Independent Professionals

Software architects, doctors, legal consultants, management advisors, and creative professionals require simplified accounting structures that minimize compliance overhead while optimizing tax liabilities. The Income Tax Act and GST frameworks offer specific benefits for service providers. We provide tax planning, GST filings, and foreign income compliance for independent professionals and consultants in Pune.

Our advisory services focus on identifying eligible tax deduction programs, managing software and consulting export filings, and ensuring FEMA guidelines on foreign remittances are followed.

Presumptive Taxation under Section 44ADA

Specified professionals can opt for the presumptive taxation scheme u/s 44ADA, which simplifies bookkeeping and limits tax filings:

  • Taxable Income Threshold: Eligible professionals can declare 50% of their gross receipts as taxable business income, provided their total gross receipts do not exceed ₹50 Lakhs (the limit is increased to ₹75 Lakhs, provided cash receipts do not exceed 5% of gross receipts).
  • Business Expense Deductions: Under Section 44ADA, the 50% presumptive rate is deemed to cover all business expenses (rent, internet, vehicle maintenance, travel, depreciation u/s 32). No additional deductions can be claimed.
  • Bookkeeping Exemption: Professionals who opt for Section 44ADA are exempt from the mandatory maintenance of detailed books of account under Section 44AA and are not subject to tax audits.
GST on Export of Services & LUT Filings

Software developers and consultants exporting services to overseas clients must comply with GST registration and filing rules:

  • Zero-Rated Supply: Export of services is treated as a zero-rated supply. Professionals do not have to pay GST, provided they file a Letter of Undertaking (LUT) in Form GST RFD-11 before the start of each financial year.
  • FIRC & Inward Remittance: To qualify as an export of service, payments must be received in convertible foreign exchange (or Indian Rupees where permitted by the RBI) within statutory timelines. We assist in verifying Foreign Inward Remittance Certificates (FIRC) issued by authorized dealer banks.
  • Place of Supply (Section 13 of IGST Act): We review service contracts to verify that the place of supply is outside India, ensuring the service qualifies as an export.

    • Application of Statutory & Tax Audit

    By integrating our robust Statutory & Tax Audit framework, we resolve complex compliance queries, perform transactional audit checks, and assist in submitting direct or indirect tax representations before appropriate statutory authorities.

    Objective Audit & Assurance Services

    Financial auditing plays a fundamental role in corporate governance, building trust for shareholders, bankers, and tax regulators. As registered Chartered Accountants in Maharashtra, we perform objective, independent audits in compliance with the Standards on Auditing (SAs) issued by the ICAI.

    Our audit philosophy combines technical testing with an understanding of client operational risk. We verify transaction trails, review ledger balances, test internal controls, and check compliance with disclosure requirements under Indian accounting frameworks.

    Statutory Corporate Audits u/s 139

    Under the Companies Act, 2013, every incorporated company must appoint an independent auditor to examine and report on their annual financial statements:

    • Financial Statement Audit: Examining balance sheets, profit & loss statements, and cash flow records to state whether they present a true and fair view of the company's financial position.
    • CARO 2020 Compliance: For eligible companies, we prepare the detailed Companies (Auditor's Report) Order (CARO 2020) disclosures, covering inventory valuation, fixed asset physical checks, loan defaults, and statutory dues deposits.
    • AS & Ind AS Adherence: Verifying that accounting estimates, revenue recognition methods, and lease reporting comply with applicable Accounting Standards (AS) or Indian Accounting Standards (Ind AS).
    Income Tax Audits u/s 44AB

    Under the Income Tax Act, 1961, businesses and professionals exceeding specified turnover thresholds must undergo a tax audit to verify direct tax compliance:

  • Filing Form 3CA/3CB and 3CD: We conduct detailed checks on capital expenditures, personal expenses debited to business accounts, depreciations claimed, and payments to related parties, compiling these into the Form 3CD statement.
  • Section 43B Verification: Auditing and certifying that statutory payments like GST, Provident Fund (PF), and Employee State Insurance (ESI) are deposited before the ITR filing due date.
  • Section 40A(3) Compliance: Examining transaction ledgers to identify and disallow cash payments exceeding ₹10,000 made to a single person in a single day.
    • Internal Audits & Financial Control Reviews

    Internal audits are designed to evaluate internal governance and protect companies from fraud and operational inefficiencies:

    • Internal Financial Controls (IFC): Under Section 134(5)(e) of the Companies Act, we test the adequacy and operating effectiveness of the company's internal financial control systems, helping prevent transaction leakages.
    • Stock & Debtors Audits: Conducting physical verification of inventories and reviewing accounts receivable ages to provide compliance certificates required by commercial banks for CC/OD credit facilities.