Turnover Certificate: A Comprehensive Guide

What is a Turnover Certificate?

A Turnover Certificate is an essential document certified by a qualified CA (Chartered Accountant) by evaluating the total business revenue generated by an entity during a particular financial year. This certification is prepared on the basis of the entity’s books of accountants and financial statements examination. Here, turnover refers to the gross revenue which is generated from business activities like - sales of goods or services, before any deduction of taxes, costs of goods sold or expenses. This certificate is mainly used by the businesses to represent their financial capability for several financial purposes.

Why is a Turnover Certificate required?

There are multiple reasons where a turnover certificate is required. Some common reasons are as follow:

1. Many business bids in government tenders as well as Private tenders and contracts where the bidder has a minimum turnover threshold to assure the financial strength to execute the project.
2. When businesses apply for loans from the banks and other financial institutions they often require turnover certificates that assure the borrower’s capacity for repayment.
3. Investors also demand for Turnover verification to assess business viability in startup fundraising rounds.
4. During the import-export licenses procedure various export councils and government authorities required turnover certificates for issuing licenses or subsidies.
5. Obtaining MSME, Startup and other registration, financial evidence are required including turnover certificates.
6. For applying for a business visa, consulates also require evidence of business activities.

Who requires a Turnover Certificate?

Below mentioned entities or individuals are commonly required the turnover certificate:

1. Proprietorship and Partnership Firms
2. Private Limited Companies
3. Startups & MSMEs
4. Applicants of business loans or working capital limits
5. Exporters & Importers
6. Contractors & Vendors applying for government tenders
7. Entities availing benefits under government schemes

Documents for Turnover Certificate

Here is the complete list of information required for Turnover Certificate -

1. Name and details of the business entity
2. Registration details
3. Period for which the turnover is stated
4. Purpose of it
5. Details of the practising professional
6. UDIN
7. Any other information as required

Fees for Turnover Certificate

Turnover Certificate mainly certified by professional Chartered Accountant therefore their fees for turnover certificate vary on CA which mainly ranges between ₹1000 to ₹2000. At RegisterAdda, we offer the Turnover Certificate service at the most affordable cost compared to others. Our client-centric approach believes in their satisfaction, we provide a Turnover Certificate at just ₹1499/- only.

Process for Turnover Certificate

The stepwise process for Turnover Certificate is as follow:

Step 1: Get expert consultancy with RegisterAdda’s experts. We will assess your requirements and share the checklist of documents.

Step 2: The applicant needs to submit all documents digitally through our secure method.

Step 3: Our expert CA’s will verify the documents and match turnover figures from ITR, GST and other accounts and reconcile any discrepancies.

Step 4: A draft certificate will be prepared by our experts and shared with you for review.

Step 5: Once you approve, the final turnover certificate will be issued to you on the CA’s official letterhead, duly signed and stamped.

These complete procedures mainly take one day to 3 working days which totally depends on the completeness of documentation.

Why Choose RegisterAdda for a Turnover Certificate?

RegisterAdda provides a hassle-free solution for obtaining a CA-certified Turnover Certificate, simplifying the process for individuals or businesses with their professional CA (Chartered Accountant). They will guide you throughout the process in gathering documents and ensuring accuracy and compliance. Not only this they will assist you after the process for post requirements.

Frequently Asked Questions

1. Is a Turnover Certificate mandatory for tenders?

Most government and private tenders require a turnover certificate to verify financial eligibility.

2. Can I get a turnover certificate for more than one financial year?

There is no problem certifying multiple years either in a single document or in separate documents as needed.

3. Can a Company Secretary issue a turnover certificate?

No, only qualified and Professional CA (Chartered Accountant) can issue a turnover Certificate.

4. Is GST registration mandatory to get a turnover certificate?

In case your turnover is below the GST threshold, other documents such as bank statements and ITRs can be used.

5. What if there is a mismatch in GST and ITR turnover?

Before issuing the certificate, the CA will analyze and reconcile the discrepancy. If necessary, a clarification note may also be attached.