Section 179 of Companies Act: Tax Audit Trap
company bar_exam beginner trick_questionYe sab question bahut simple lagta hai, lekin sabhi ko trap me padta hai. Question hai: "X Ltd. is an IT company, registered under Companies Act. It is earning annual revenue of 10 crores. Under Section 179 of Companies Act, is it mandatory for company to get its accounts audited by a chartered accountant, if auditor has not objected to any transaction?"
Sabhi students ko lagta hai ki answer hai haan, kyunki annual turnover hai 10 crores. But wait, koi aapko bataya karta hai ki Section 179 ka scope limited hai, only those companies mein, jo manufacturing companies hai. IT companies, jaise X Ltd. ke case mein, Section 179 ka application nahin hota hai.
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Dear fellow aspirants, ye must note that Section 179 of the Companies Act does not specifically deal with tax audit. It's actually about the Board of Directors' duties & powers. Tax audit is under Section 44AB of the Income Tax Act. So, let's not get Section 179 mixed up with tax audit, guys. It's a common trap, but not that straightforward.
Section 179 of Companies Act ke bare mein yeh article bahut hi informative hai. Ab kuch aise companies honge jo tax audit ke liye tayyar nahi hain, aur yeh article unke liye ek chetavani hai. Yeh unhein Section 179 ke under kya kya documents provide karna hoga, unhein samjhaata hai. Is article ko padhkar companies apne tax audit ki taiyaari karein aur acha performance dete hain.