Turnover Certificate
A turnover certificate is a factual declaration that attests to the entity’s turnover by the standards. The turnover certificate in India reassures users that the company entity’s turnover during a given period is accurate. The Chartered Accountant issues a turnover certificate. This document attests to the applicant’s organisation’s entire annual turnover.
What is Turnover Certificate?
A turnover certificate is a legal document issued by a company or institution to formally acknowledge the transfer of responsibilities, assets, or operations from one entity to another. It typically outlines the details of the turnover, including dates, specific items or responsibilities transferred, and any conditions or obligations associated with the transfer. This certificate serves as a crucial record in business transactions, ensuring clarity and accountability between parties involved in the transfer process. It may be required for legal and financial purposes to document the seamless transition of operations or assets from one party to another.
Where is the turnover certificate required?
A turnover certificate is required by anybody willing to get an assurance on the turnover of the entity in speculation. Here are some cases where the turnover certificate might be required.
- For participating in tenders issued by the various companies, local authorities, and also institutes.
- It is also required in the banks and the financial institution for loan purposes.
- Also required by investors to fund an existing or new project/business.
Who can issue a turnover certificate in India?
The turnover certificate in India is a certificate that provides an assurance certificate to the user about the turnover of a business entity. It is issued by a practicing Chartered Accountant who is specializing in issuing the turnover certificate.
Advantage of Turnover certificate
Legal Clarity:
It provides legal documentation of the transfer, ensuring both parties understand their rights and obligations.
Financial Accountability:
Helps in tracking financial assets and liabilities transferred during the turnover, aiding in financial audits and accountability.
Operational Continuity:
Ensures smooth continuity of operations by documenting essential details such as responsibilities and operational procedures.
Dispute Resolution:
Acts as evidence in case of disputes regarding the terms or conditions of the turnover, facilitating faster resolution and preventing misunderstandings.
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
Net Worth Certificate Charges
The charges applicable for preparing a net worth certificate vary, depending on factors such as the specific requirements of the certification process and the expertise of the CA. Getting your net worth certificate validated by a top CA expert in India could cost you more. However, all certified CAs are eligible to validate a net worth certificate.
Frequently Asked Questions
A Turnover Certificate is a financial document that certifies the total revenue generated by a company or individual over a specific period, typically a fiscal year.
A Turnover Certificate is usually issued by a certified public accountant (CPA) or a chartered accountant (CA).
It is crucial for various purposes, such as securing loans, participating in tenders, and validating financial stability for business transactions.
The certificate includes details like the total turnover, financial year, auditor’s name, and signature, along with the firm’s seal.
To obtain it, provide your financial statements to a CA or CPA, who will verify and certify the turnover.
While not always mandatory, it is often required for government tenders, business contracts, and financial assessments.