Statutory auditor and Tax Audit

[Dipti Samant]

Can statutory auditor of pvt ltd co do tax audit of same company and if yes sec 144 resolution applicable 

Kindly advice

Regards
Dipti Samant

[Siddharth Ahuja]

Yes. The statutory auditor is not prohibited from performing a tax audit. Since the tax audit is a "compliance-related" professional service and not a prohibited "non-audit service" (like bookkeeping or internal audit), it is permissible.

When the statutory auditor performs the tax audit, they use Form 3CA (the report for cases where accounts are already audited under another law) along with Form 3CD.

Section 144 Resolution?

Technically, No. Section 144 of the Companies Act, 2013, lists prohibited services that an auditor cannot provide (such as internal audit, investment banking, or actuarial services).

Since a tax audit is not on that prohibited list, it does not fall under the "prohibition" part of Section 144. However, you must still follow the procedural requirement of the same section:

• Board Approval: Under Section 144, any "other services" provided by the statutory auditor must be approved by the Board of Directors or the Audit Committee (if the company is required to have one).

• The "Resolution": While you don't need a specific resolution to "exempt" the auditor from Section 144 (because tax audit is allowed), you do need a Board Resolution to appoint the auditor for the tax audit and to approve their remuneration for that specific service.

Thanks & Regards

Siddharth Ahuja

#9643000607

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[Gopal Rathnam]

Tax audit by the statutory auditor is permissible, but it must be backed by board approval under Section 144. Without that procedural compliance, it could be questioned as a lapse in governance, though not a substantive violation of prohibited services.  
Gopal rathnam

[badal sharma]

Dear sir,

As per your trailing mail, what's your view on GST Review by the statutory Auditor ??

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[Gopal Rathnam]

Yes, the statutory auditor of a private limited company can also carry out a tax audit (including GST‑related review / audit‑like work), but only if the Board approves such “other services” under Section 144 of the Companies Act, 2013 and the scope does not fall within the prohibited non‑audit services listed in that section. 

2. Section 144 of the Companies Act applies whenever the statutory auditor is to provide any other service (tax‑audit‑type assignments, GST‑review, systems review, etc.) to the same company. Mandatory Board/audit‑committee approval is required before such work is accepted.

Resolution draft

:“Resolved that the statutory auditor of the Company, [Name], is hereby approved to undertake the review of GST‑related accounting, returns, and compliance for the financial year [FY], in addition to the statutory audit of the Company’s financial statements, subject to the provisions of Section 144 of the Companies Act, 2013 and the independence standards prescribed by the ICAI.”This keeps it clean, compliant, and defensible before regulators

Regards, 

M.GopalRathnam

Company Secretary

Res :D-1106, Mantri Elegance, Bannerghatta Road, Bangalore 560076.

Mobile 9886618696