Every organization requires prevention from risks and errors from time to time. To ensure that situations like facing tax fines never arise, zealous business owners conduct a preventive tax audit with the help of audit firms in India which diagnose all errors and shortcomings of accounting and tax accounting and suggest the best ways to eliminate them.

A tax audit conducted by an independent company will allow you to objectively assess the financial accounting of your business, the correctness of calculations and payment of taxes for the reporting period, the state of settlements with budgetary and non-budgetary funds. Passing a tax audit will reduce any tax risks to zero and guarantee the financial health of the business.

The assistance of the best audit firms in India is not limited to assessing the correctness of the reporting of an economic entity. Tax support also includes an audit of risks to which the foreign economic activity of an enterprise, intermediary activities, as well as the support of tax audits, are especially susceptible.

What exactly do experts check in a financial and tax audit?

Their main goal is to understand how correctly the taxable base is determined in the organization, the tax on profits, property of the organization is calculated, and whether the tax benefits are effectively and legally applied.

An audit of tax reporting can be complex (audit of declarations and calculations for all taxes paid for the year) and thematic (audit of an organization covers individual declarations and calculations for a certain period).

Putting the reporting in order just before the mandatory tax audit can save you from many problems. And the overpaid money can be returned no later than three years after payment, therefore the timeliness of the service determines its effectiveness.

In addition to these cases, it makes sense for a company to request an audit of the taxation department when the chief accountant or a specialist responsible for drawing up declarations and making payments has been recently changed.

What do you get as a result?

Of course, the purpose of a tax audit is not at all to draw up a detailed audit opinion that you will receive as a result. The conclusion is just a complete collection of the identified accounting errors and reasonable recommendations for their elimination.

It is the correction of errors based on the audit report that will be the result of a tax audit and will give your business a chance of having a sound taxation structure.

In the light of what has been illustrated above about tax audit, it is, therefore, necessary that the interested parties make a change of pace and consider this type of audit as an opportunity to protect the company from possible risks of various kinds and nature.

Our recommendation for you is to have auditing services in India accompany you all the time so that you can ensure that your business is complying with every update made by the govt. in tax-related matters.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Ruchika Gupta

AKGVG & Associates