Strategic Matrix Solution

Statutory & Tax Audit for Professional & Freelance Services Sector in Chakan Industrial Area

Authorized business advisory and regulatory compliance services tailored for Professional & Freelance Services enterprises operating in the Chakan Industrial Area region, Maharashtra.

Service Scope: Statutory & Tax Audit

Under our corporate finance advisory division, we implement specialized auditing systems and structured compliance protocols. Our team ensures that all direct tax filings, TDS records, and GST declarations match the exact provisions of the relevant financial acts.

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.

    Industry Challenges for Professional & Freelance Services

    Every industry carries unique risk profiles and regulatory reporting frequencies. Our advisory models adapt to accounting methods (like inventory valuation or revenue recognition) that are specific to the Professional & Freelance Services vertical.

    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.

    • Geographic & MIDC Compliance in Chakan Industrial Area

    Enterprises in the Chakan Industrial Area area (incorporating the MIDC clusters) must adhere to local taxation rules, municipal regulations, and state-level subsidy filings. CA Abhijeet Dolase & Associates maintains local offices and representatives to conduct face-to-face inventory checks, audits, and department representation.

    Taxation & Auditing FAQs

    Q When is a Tax Audit under Section 44AB mandatory?

    For businesses, a tax audit is mandatory if the total turnover or gross receipts exceed ₹10 Crores (subject to cash transaction limits of 5%). For professionals, the threshold is ₹50 Lakhs.

    Q What is the role of Internal Financial Controls (IFC) in statutory audits?

    Under Section 134(5)(e) of the Companies Act, auditors of listed and large companies must report on the adequacy and operating effectiveness of the company's internal financial controls.

    Q What is CARO 2020 and which companies are exempt?

    CARO 2020 is a reporting order requiring auditors to disclose specific compliance checks. Exempt entities include One Person Companies (OPCs), small companies (turnover under ₹40 Cr and capital under ₹4 Cr), and private companies meeting specific criteria regarding borrowing and turnover.

    Q Who is eligible to claim presumptive tax under Section 44ADA?

    Specified professionals (legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration) whose gross receipts do not exceed ₹75 Lakhs (with cash receipts under 5%) can declare 50% of gross receipts as taxable income.