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Turnover Certificate

A turnover certificate is an official document that certifies the turnover of a business entity based on its Income Tax Return (ITR), GST Return, or other specified requirements. It serves as a reliable record of business transactions during a given period. However, it is important to note that the figures mentioned in the certificate are approximations and should be interpreted accordingly.

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Why Should I Use Auriga Accounting of Turnover Certificate?

Auriga Accounting has a team of registration experts who can provide complete guidance to Turnover Certificate.

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Our team of experts will get in touch with you and collect all necessary documents and details

Resolve all your queries

We fill out and file your application for Accounting & Book- Keeping

Complete your Accounting & Book- Keeping

Ready Your Turnover Certificate

OVERVIEW - Turnover Certificate

A turnover certificate is an official document that certifies a business entity’s turnover for a specific period. Issued by a Chartered Accountant (CA), it provides assurance regarding the revenue generated by the business. The certificate can cover one or multiple years, depending on the requirement, and applies exclusively to the applicant’s organization—not its subsidiaries or affiliated entities.

What is Annual Compliance For a One person Company?

Key Information in a Turnover Certificate

The contents of a turnover certificate vary based on the intended purpose. However, a standard certificate typically includes:

  • Business Entity Details – Name, address, and registration information.
  • Registration Details – GST, PAN, or other relevant identifiers.
  • Turnover Period – The timeframe for which turnover is reported.
  • Purpose of the Certificate – Reason for issuance (e.g., loan applications, tenders).
  • Chartered Accountant Details – Name, firm details, and credentials.
  • Unique Document Identification Number (UDIN) – For authenticity.
  • Additional Information – As required by the requesting authority.

Process to Obtain a Turnover Certificate

  1. Document Submission – Provide relevant financial records as per CA’s checklist.
  2. Verification – The CA examines and validates the documents.
  3. Draft Preparation – A preliminary copy is shared for review.
  4. Final Certification – Upon approval, the CA issues a certified turnover certificate.

Where is a Turnover Certificate Required?

A turnover certificate is essential for entities seeking validation of their financial standing. Common use cases include:

  • Tender Participation – Required by companies, government agencies, and institutions.
  • Bank Loans & Financial Institutions – To support loan applications.
  • Investor Assurance – To secure funding for new or existing projects.

Who Can Issue a Turnover Certificate?

In India, a practicing Chartered Accountant (CA) is authorized to issue a turnover certificate. The CA ensures accuracy and compliance before certifying the document, making it a reliable assurance of the entity’s financial performance.

Scope and Limitations

  • The turnover certificate pertains to a single business entity that maintains separate books of accounts.
  • While calculating turnover, details of sister concerns or subsidiary entities are not included.
  • As per the Guidance Note issued for Chartered Accountants (CAs), they are required to provide either reasonable assurance or limited assurance regarding the turnover figures.
  • Due to the inherent limitations of auditing, it is not possible for CAs to eliminate all risks entirely.

This certificate plays a crucial role in financial verification and is widely used for tenders, loans, and investment purposes.

Issuance of a Turnover Certificate

A Turnover Certificate can only be issued by a Chartered Accountant (CA), providing assurance regarding the turnover of a business entity. It is mandatory to include the CA’s details and Unique Document Identification Number (UDIN) on the certificate for authenticity.

Fees for a Turnover Certificate

The fees for issuing a Turnover Certificate vary based on factors such as the entity’s turnover, the number of years covered, and the business structure. Generally, the cost ranges between ₹3,000 to ₹7,000, depending on the complexity of the certification.

Process to get Turnover Certificate by Chartered Accountant

Obtaining a Turnover Certificate is a simple and straight forward process. Steps involved in getting Turnover Certificate by Chartered Accountant are as follows :-

  1. i) Submit required documents and details to Chartered Accountants such as- PAN, GST return,

Financial statements, ITR for h=given years, etc.

  1. ii) Chartered Accountant will verify the details submitted

iii) Draft of certificate is sent for confirmation

  1. iv) On receiving confirmation, CA will issue final signed certified copy of Turnover Certificate

CA will issue a Turnover Certificate after conducting a precise and strict audit of the business entity. And in case the auditor finds any discrepancies, he should suggest accounting adjustments to the entity.

Whenever CA is required to issue Certificate for any special purpose like Turnover Certificate, CA needs to do full evaluation of scope of engagement.

Requirement of Turnover Certificate by Chartered Accountant:

  1. By Banks or financial institutions for loan
  2. By investors while investing fund in entity
  3. To open current account in banks
  4. While participating in bids by various businesses, local governments, etc.
  5. To participate in tenders issued by various companies
  6. For Export Turnover & performance

Contents of Turnover Certificate by Chartered Accountant:

  1. i) Name and address of business
  2. ii) Registration under respective Act details

iii) Purpose of turnover certificate

  1. iv) Period of certificate
  2. v) Records examined during the course of issuance of certificate
  3. vi) Details about the party by whom the certificate is issued or referred

vii)Turnover calculation method used

viii) Details of the practicing professional

  1. ix) UDIN of certifying CA
  2. x) Any other information, as required.

Where is a CA Turnover Certificate Required?

A Chartered Accountant (CA) Turnover Certificate is an essential document required in various financial and business scenarios, including:

  • Loan Applications – Banks and financial institutions may request a CA Turnover Certificate when processing loan applications.
  • Investment Requirements – Investors often require this certificate before funding a business to assess its financial health.
  • Opening a Current Account – Some banks may mandate a turnover certificate as part of the account opening process.
  • Bidding for Contracts – Businesses bidding for projects from companies, government bodies, or other entities may need to submit a turnover certificate.
  • Tender Participation – Many tenders, including those on platforms like GeM (Government e-Marketplace), require a CA Turnover Certificate for eligibility.
  • Export Business – Exporters may use the certificate to demonstrate turnover and business performance.

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