Blog

CA Turnover Certificate: Everything You Need to Know

Are you in need of a Chartered Accountant (CA) Turnover Certificate? Alliance Tax Experts is here to provide you with comprehensive information about CA Turnover Certificates, including the procedure, format and uses. As a leading provider of accounting services, we understand the importance of accurate and reliable certification for your business. Read on to learn more about CA Turnover Certificates and how they can benefit you.

What is a CA Turnover Certificate?

A CA Turnover Certificate is an official document issued by a Chartered Accountant that certifies the total turnover of an entity for a specific period. This certificate serves as a confirmation that the entity has achieved the turnover amount mentioned in the certificate. The duration covered by the certificate can range from one year to multiple years, depending on your requirements.

Obtaining a Turnover Certificate by a Chartered Accountant

Acquiring a Turnover Certificate from a Chartered Accountant is a simple and straightforward process. Here are the steps involved:

1.     Submit the necessary documents and details to your Chartered Accountant, including PAN, GST returns, financial statements, and ITR for the relevant years.

2.     The Chartered Accountant will verify the submitted details.

3.     A draft of the certificate will be sent to you for confirmation.

4.     Once confirmation is received, the Chartered Accountant will issue the final signed certified copy of the Turnover Certificate.

The Chartered Accountant will conduct a precise and strict audit of your business entity before issuing the Turnover Certificate. If any discrepancies are found, the auditor may suggest accounting adjustments to ensure accuracy.

Requirements for a Turnover Certificate

A Turnover Certificate by a Chartered Accountant is required in various situations, including:

1.     Banks or financial institutions may request a Turnover Certificate when processing loan applications.

2.     Investors often require a Turnover Certificate before investing funds in an entity.

3.     To open a current account in a bank, a Turnover Certificate may be necessary.

4.     When participating in bids from businesses, local governments, and other entities, a Turnover Certificate may be a mandatory requirement.

5.     To participate in tenders issued by various companies, a Turnover Certificate may be needed.

6.     Export businesses may require a Turnover Certificate to demonstrate their turnover and performance.

Contents of a Turnover Certificate by a Chartered Accountant

The contents and format of a Turnover Certificate issued by a CA may vary based on the purpose and requirements of the certificate. However, a basic Turnover Certificate typically includes the following details:

·       Name and address of the business

·       Registration details under the relevant Act

·       Purpose of the Turnover Certificate

·       Certificate period

·       Records examined during the certification process

·       Details about the issuer or referee of the certificate

·       Method used for turnover calculation

·       Information about the practising professional

·       UDIN (Unique Document Identification Number) of the certifying CA

·       Any additional required information

Who Can Issue a Turnover Certificate?

Only a Chartered Accountant can issue a Turnover Certificate, providing assurance to users regarding the entity's turnover. It is mandatory for the certificate to include the details of the Chartered Accountant and their UDIN.

Fees for a Turnover Certificate Issued by a CA

The fees charged for a Turnover Certificate depend on factors such as turnover, the number of years covered in the certificate, and the entity's structure. Generally, the fees for issuing a Turnover Certificate by a CA range from Rs. 3,000.00 to Rs. 7,000.00

Format of a Turnover Certificate Issued by a CA

The following is a basic format for a Turnover Certificate, which may vary depending on the purpose and requirements of the certificate:

TO WHOMSOEVER IT MAY CONCERN

We have verified the books of accounts and related documents M/S _____________________ having PAN: ______ and GSTN: ________ and situated at _______________ and on verification of records, we hereby certify that the Average Annual turnover of this mentioned entity during the last three financial years are as under-

Sr. No.

Financial Year                                                      Total Turnover (in Rs.)

    1

    2

    3

Total

Average Annual Turnover of last three years

The turnover certified above is in line with the turnover declared by the entity in their Income-tax Returns filed under PAN No. ___________.

This turnover verification certificate is being issued upon their request to be used for _________(purpose of certificate).it may serve them.

For ____________________ (Chartered Accountants)

FRN: ___________

(Partner) M.N. ________

UDIN __________

Sign and seal of Chartered Accountant

Place: _________

• Follow Us :