Turnover Limit for Statutory Audit in India — Company, LLP & Firm
“What is the turnover limit for a statutory audit?” is one of the most confused questions in Indian compliance, because the answer depends on the type of entity — and it’s different from the tax audit limit. This guide clears it up. (Thresholds can change — confirm the current limits.)
Companies — statutory audit applies to ALL, with no turnover limit
Every company registered under the Companies Act 2013 — private limited, public, OPC, Section 8 — must get its accounts statutorily audited by a Chartered Accountant every year, regardless of turnover or profit. There is no minimum turnover below which a company is exempt from statutory audit.
LLPs — audit above a threshold
A Limited Liability Partnership must get a statutory audit if its turnover exceeds ₹40 lakh in a financial year or its capital contribution exceeds ₹25 lakh. Below both limits, an LLP audit is not mandatory (though a tax audit may still apply).
Proprietorships & partnership firms — no statutory audit, only tax audit
An ordinary proprietorship or partnership firm has no statutory audit requirement merely for existing. They may, however, require a tax audit under Section 44AB.
Tax audit (Section 44AB) — a separate concept
- Business: ₹1 crore turnover (₹10 crore if cash receipts & payments are each ≤5%).
- Profession: ₹50 lakh gross receipts.
- Plus the presumptive-scheme trigger where lower profits are declared.
So a small company with ₹5 lakh turnover still needs a statutory audit (company rule) even though it’s below the tax-audit limit. TAXAJ provides audit services for all entity types.
Frequently asked questions
Is there a turnover limit for a company’s statutory audit?
No. All companies must be statutorily audited every year regardless of turnover.
What is the audit turnover limit for an LLP?
An LLP needs a statutory audit if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
Is statutory audit the same as tax audit?
No. Statutory audit is a company/LLP requirement under company law; tax audit is under Section 44AB of the Income-tax Act with its own turnover limits.
Need a statutory or tax audit? TAXAJ’s CAs handle audits for companies, LLPs and firms. Get your audit done with TAXAJ →
Related guides: Auditing · Partnership firm audit · Annual filing
