Follow Us :

Dear Friends

The Clause 44 of the Form 3CD is effective for Assessment Year 2022-23 i.e. for the Financial Year 2021-22 because the compliance of this clause was kept in abeyance till 31/03/2022 but for all the reports submitted after that date the clause is mandatory.

Since the audits for the Financial Year 2021-22 are under process hence we should study how to report and comply this clause and how the Assesssee under audit will submit the data under this clause.

The primary duty of submission of the details is of Auditee and for verification of the information supplied under this clause can be verified form the GSTR-2A, GSTR-2B, AIS and other records available with the dealer.

Most of the information required for this clause is already available with the Law makers in the form of GSTR-2A and AIS and what is the use of this information in Form 3CD is better known to the lawmakers but since the clause is there hence the Assesssee and Auditor has to follow and comply it.

Let us see an Example with certain notes: –

S.NO.
Total Amount of Expenditure incurred during the year
Expenditure in respect of entities registered under GST
Expenditure relating to entities not registered under GST
Relating to Goods or Services exempt form GST
Relating to the Entities falling under Compositions Scheme
Relating to other Registered Entities
Total Payments to Registered Entities
(1)
(2)
(3)
(4)
(5)
(6)
(7)
1.
22355475.00
199660.00
177040.00
19488780.00
19865480.00
2489995.00

WORKING AND CALCULATION

TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING ON 31-3-2022

PARTICULARS AMOUNT PARTICUALS AMOUNT
Opening Stock 720000.00 Sales 22345000.00
Purchases 19676875.00 Closing Stock 845000.00
Gross Profit 2793125.00
Total 23190000.00 Total 23190000.00
Salary 555000.00 Gross Profit 2793125.00
Travelling 234500.00
Office Expenses 365600.00
Repair and Maintenance 117600.00
Interest 305600.00
Local Conveyance 34500.00
Festival Expenses 132400.00
Commission 75000.00
Business Promotion 123400.00
Depreciation 76560.00
Net Profit 772965.00
Total 2793125.00 Total 2793125.00

CALCULATION FOR PRESENTATION IN CLAUSE 44 OF FORM 3CD

S.NO.
Total Amount of Expenditure incurred during the year
Expenditure in respect of entities registered under GST
Expenditure relating to entities not registered under GST
Relating to Goods or Services exempt form GST
Relating to the Entities falling under Compositions Scheme
Relating to other Registered Entities
Total Payments to Registered Entities
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Purchases
19676875.00
0.00
120340.00
18456000.00
18576340.00
1100535.00
Salary
555000.00
0.00
0.00
0.00
0.00
555000.00
Travelling & Petrol Expenses
234500.00
176500.00
0.00
0.00
176500.00
58000.00
Office Expenses
365600.00
5600.00
56700.00
75600.00
137900.00
227700.00
Repair and Maintenance
117600.00
0.00
0.00
45780.00
45780.00
71820.00
Interest
305600.00
0.00
0.00
0.00
0.00
305600.00
Local Conveyance
34500.00
17560.00
0.00
0.00
17560.00
16940.00
Festival Expenses
132400.00
0.00
0.00
0.00
0.00
132400.00
Commission
75000.00
0.00
0.00
75000.00
75000.00
0.00
Business Promotion
123400.00
0.00
0.00
101400.00
101400.00
22000.00
Capital Expenditure- Car
735000.00
0.00
0.00
735000.00
735000.00
0.00
Reporting Amount
22355475.00
199660.00
177040.00
19488780.00
19865480.00
2489995.00
Depreciation
76560.00
NA
NA
NA
NA
NA

One can give consolidate figures

One can give consolidate figures for all the expenditure under this clause or one can give Revenue and Capital Expenditure under the serial Number 1 and 2  but it should be noted there is no place in the utility to mention the expenditure under the head Revenue and Capital Expenditure with name.  Hence consolidate figure can also serve the purpose.

Further in case of Depreciation, In my opinion there is no need to include figure of depreciation in these figures because in that case further bifurcation is not possible but if you choose to include the figure of depreciation then use your discretion and ask the client to submit the details in such manner.

This is illustrative description of the figures to be reported in the Clause 44 of Form 3CD based on certain opinion of the Author of this Article. The comments for improvement of the study are invited to make it more useful.

 

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

13 Comments

  1. CA Shantanu Saxena says:

    what is the treatment of GST not taken on the expenses like Bank Charges gst not taken.
    and what is the treatment of block credit u/s 17(5) such as car purchase
    what is the treatment of Expenses of RCM ?

  2. Darshan says:

    Dear Sir,
    Thank you for posting illustration .
    In para 82.3 of Guidance Note on Tax Audit under Section 44AB of the Income Tax Act, 1961 AY 2022-23, has mentioned not to report remuneration to employees need not to reported under this clause in any of the columns
    from 3 to 7. Can you please explain reason for reporting salaries under column 7 of your illustration

  3. Nitesh SHarma says:

    Goods purchased are routed through Inventory and Charged to Expense on the basis on Consumption. then how to compile the GST amount on expenditure charged to expense.

  4. Ashutosh says:

    Where to Show Interest on TDS , Late Filing Fees for TDS , Income Tax ( current year ) , Prior period tax , Preliminary Expenses written off , audit fees payable , legal expense incurred for filing Fees of MCA returns in case of Tax Audit of Private Limited Company

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
May 2024
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031