A Statutory and a Tax Audit are not a compulsory requirement for all the Limited Liability Partnerships. However, an LLP is liable to get a statutory audit conducted only when it crosses a threshold limit in terms of either Turnover or Capital Contribution and a Tax Audit is mandatorily conducted if the turnover exceeds the threshold.
LLP has a privilege over other entities, with regard to compulsory statutory audit. Other forms of business structures are required to get a statutory audit, irrespective of their contribution or turnover.
Condition
Requirements
Turnover exceeds 40 Lakhs or Capital contribution exceeds 25 lakhs
Statutory Audit is required
Turnover exceeds 1 crore
Statutory Audit and Tax Audit both are required