Industry-Service Focus

Retail & E-commerce Sector Solutions: Statutory & Tax Audit

Integrated Chartered Accountant advisory models targeting regulatory filing requirements for Retail & E-commerce entities via specialized Statutory & Tax Audit audits.

Understanding the Retail & E-commerce Sector

Every industry carries specific risk structures, inventory pipelines, and compliance regimes. For companies operating in the Retail & E-commerce field, regular audits and tax optimizations must align with the corresponding business operational pace.

Tax Optimization & Inventory Reconciliation for E-commerce

The retail and e-commerce sectors operate in high-volume, thin-margin environments characterized by complex inventory management, returns processing, and multi-state GST obligations. Whether managing physical retail chains or online direct-to-consumer (D2C) brands, businesses require clean accounting control pipelines. We provide comprehensive retail taxation and auditing services to optimize working capital.

We specialize in setting up automatic sales ledger reconciliations, matching purchase transactions with digital marketplace records, and performing inventory audits to secure margins.

Our Core Retail & E-commerce Tax Services

We address the specific accounting, taxation, and logistics challenges of modern retailers:

  • Marketplace Reconciliations: Matching monthly sales reports, commission details, and returns from online platforms (Amazon, Flipkart, Shopify, etc.) with internal accounting ledgers.
  • GST TCS u/s 52 & Income Tax TDS u/s 194O: Monitoring and reconciling Tax Collected at Source (TCS) collected by e-commerce portals under GST, and verifying TDS deductions made u/s 194O of the Income Tax Act.
  • Multi-State GST Setup: Registering and filing returns for warehouses and fulfilment centres located across multiple states, managing Additional Place of Business (APOB) registrations.
  • Inventory Valuation (AS-2): Setting up inventory tracking methodologies, applying cost formulas (FIFO or Weighted Average), and auditing physical stock at warehouses.
Reconciling Marketplace Payments & Deductions

E-commerce operators apply multiple transaction-level deductions, making cash flow tracking difficult:

  • Commission & Shipping Charges: Auditing marketplace invoices to ensure commissions, pick-and-pack fees, and shipping charges match agreed rate structures.
  • Returns & Credit Notes: Reconciling customer returns, damaged inventory claims, and checking that corresponding GST credits are claimed and tax liabilities adjusted in GSTR-1 and GSTR-3B.

    • Application of Statutory & Tax Audit

    By integrating our robust Statutory & Tax Audit framework, we resolve complex compliance queries, perform transactional audit checks, and assist in submitting direct or indirect tax representations before appropriate statutory authorities.

    Objective Audit & Assurance Services

    Financial auditing plays a fundamental role in corporate governance, building trust for shareholders, bankers, and tax regulators. As registered Chartered Accountants in Maharashtra, we perform objective, independent audits in compliance with the Standards on Auditing (SAs) issued by the ICAI.

    Our audit philosophy combines technical testing with an understanding of client operational risk. We verify transaction trails, review ledger balances, test internal controls, and check compliance with disclosure requirements under Indian accounting frameworks.

    Statutory Corporate Audits u/s 139

    Under the Companies Act, 2013, every incorporated company must appoint an independent auditor to examine and report on their annual financial statements:

    • Financial Statement Audit: Examining balance sheets, profit & loss statements, and cash flow records to state whether they present a true and fair view of the company's financial position.
    • CARO 2020 Compliance: For eligible companies, we prepare the detailed Companies (Auditor's Report) Order (CARO 2020) disclosures, covering inventory valuation, fixed asset physical checks, loan defaults, and statutory dues deposits.
    • AS & Ind AS Adherence: Verifying that accounting estimates, revenue recognition methods, and lease reporting comply with applicable Accounting Standards (AS) or Indian Accounting Standards (Ind AS).
    Income Tax Audits u/s 44AB

    Under the Income Tax Act, 1961, businesses and professionals exceeding specified turnover thresholds must undergo a tax audit to verify direct tax compliance:

  • Filing Form 3CA/3CB and 3CD: We conduct detailed checks on capital expenditures, personal expenses debited to business accounts, depreciations claimed, and payments to related parties, compiling these into the Form 3CD statement.
  • Section 43B Verification: Auditing and certifying that statutory payments like GST, Provident Fund (PF), and Employee State Insurance (ESI) are deposited before the ITR filing due date.
  • Section 40A(3) Compliance: Examining transaction ledgers to identify and disallow cash payments exceeding ₹10,000 made to a single person in a single day.
    • Internal Audits & Financial Control Reviews

    Internal audits are designed to evaluate internal governance and protect companies from fraud and operational inefficiencies:

    • Internal Financial Controls (IFC): Under Section 134(5)(e) of the Companies Act, we test the adequacy and operating effectiveness of the company's internal financial control systems, helping prevent transaction leakages.
    • Stock & Debtors Audits: Conducting physical verification of inventories and reviewing accounts receivable ages to provide compliance certificates required by commercial banks for CC/OD credit facilities.