CA Sudhir Halakhandi
New Format Tax Audit Report- The Midyear Changes in Tax Audit Report in Form 3CD Are Undesirable
The Central Board of Direct Taxes has issued a new set of formats for Tax audit report in the form of Form 3CA, Form 3CB and Form 3CD thorough Notification No. 33/2014 dated 25/07/2014. In all they have introduced 24 changes and seek more information from the tax auditor. There is no dispute about the right of our lawmakers (here the CBDT) to draft these formats and ask the information which in their opinion is required for the task in hand but the timing of introduction of these changes is not only crucial and sudden but irritating also.
See here, the financial year related to the assesseement year 2014-15 has come to an end on 31/03/2014 and the audits for the financial year under consideration can be started any time on or after 01/04/2014 hence the formats of the audit report in this respect should be introduced on or before 1/04/2014. Why two sets of audit report in a single assessment year.
Here, the question is not about the requirement and usefulness of the information newly asked in the format of Tax audit report and form 3CD but there should be a systematic approach which should strictly be followed by the regulators and the Law makers also. If they have taken time to draft these revised formats and the task was not completed on 01/04/2014 then the applicability should also be declared from the Next year.
Further the law makers have enormous resources at their disposal but see, there is always delay in introduction of the ITRs for e-filing every year. The schema for Tax audit report was changes on weekly basis in 2013. It seems there are bottlenecks and these should be overcome first before making the system more complicated by introducing the midyear changes.Online GST Certification Course by TaxGuru & MSME- Click here to Join
The Format of audit reports, the Schema of E-filing ITRs should be introduced on or before 1st Day of April every year because meeting this deadline is not an impossible task so that the concerned Taxpayers and professionals can plan their work accordingly. This is very simple and reasonable demand and it should be considered in the same way.
No doubt that our Law makers have very difficult task in their hand because the number of taxpayers is too large and accordingly there may be lot of planning to be done to regulate the whole system of Direct taxation but the attitude “when procedure is ready at our end we will introduce it” should be changed and this is not very urgent matter which required to be introduced in middle of the year.
The New formats of Tax audit report should be made applicable for the assessment year 2015-16 for the sack of only one reason that these should not be introduced in middle of the year.
-CA Sudhir Halakhandi, -CA Abhas Halakhandi
Halakhandi And Company, Chartered Accountants
“Halakhandi”, Laxmi Market, Beawar-305901(Raj)
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