Representation made by ICAI with respect to new formats of Form No.3CA/3CB and 3CD. – (11-08-2014)
The new formats of tax audit reports namely Form No.3CA, 3CB and 3CD have been notified through Notification no. 33/2014 on 25/7/2014 with immediate effect. With regard to the same, certain genuine concerns were raised by the members, which, ICAI has, through a representation dated 07.08.2014, brought to the notice of the Hon’ble Finance Minister, Revenue Secretary, and Chairman CBDT for appropriate action at their end. Also, certain preliminary observations on the new forms have been shared with them.
For the reasons mentioned in detail in the representation and summarized below, ICAI has suggested:
The new formats of tax audit reports be made effective from the Assessment Year 2015-16 and not Assessment Year 2014-15. Alternatively, the due date for furnishing tax audit reports for the Assessment Year 2014-15 may be extended to 30th November, 2014
It has also been suggested that appropriate clarification be issued with regard to the position of the tax audit reports e-filed during 01.04.2014 to 24.07.2014 relating to Assessment Year 2014-15.
Reasons given in brief:
a) The Internationally accepted Standard on Auditing-700 has not been considered.
b) The audit of 50% of the taxpayers like listed companies, PSUs, Banks, Insurance Companies have already been completed and the financial statements are published. Only, the audit reports are pending for uploading in the e-filing portal.
c) The notification has been issued just two months before the last date of furnishing tax audit report and the schema for the same is not yet made available. This will cause undue hardship to both the taxpayer and the auditors.
Direct Taxes Committee, ICAI
SINCE 1984, ICAI (FINANCIALS) WORKED WITHOUT TRANSPARENCY LOBBYING WITH MINISTRIES & BUREAUCRATS. I THINK IT IS BEARING FRUITS NOW ? NOW THE ISSUE INVOLVED IS TAX-ADVOCATES, CAS & PRACTICE OF LAW. I DON’T THINK SUCH ACTION OF ICAI (FINANCIALS) YIELD DESIRED RESULTS.
I AM OF THE STRONG VIEW THAT SECTION 44AB SHOULD HAVE BEEN AMENDED TO INCLUDE RELATED PROFESSIONALS FOR REPLACING THE TAX AUDIT FORMS. IF I AM WRONG WHAT WAS THE NECESSITY TO REPLACE TAX AUDIT FORMS. FURTHER, REVISED TAX AUDIT FORMS WILL ALSO ENABLE THE RTI APPLICANTS TO SEEK MORE INFORMATION ABOUT TOTAL OF SECTION WISE WRONG CLAIMS REPORTED IN TAX AUDIT CERTIFICATE.
When new forms available for 3CB, 3CD for uploading, only around 40 days left for due date, how we will complete audit in short time?
Kashmi CMA ji,
I hope this will happen very soon. You are absolutely right if such powers given to all professionals than there will be following benefits:-
1) Audit will be completed in time & quality of audit will be increased.
2) Financial burden on assessees will be reduced.
3) Genuine tax base will be widen.
If Chartered Accountants are not able to complete the audit. Kindly authorise CWA, CS and advocates also to handle these audits. They can also serve nation by supporting the timely completion. Consider the suggestion as a recommendation.
Ganesh Rapaka – CA Articles – Hyderabad
If new Tax audit report forms namely 3CA,3CB – 3CD implimented in the Assessment year 2014-15, Tax Audit Report new format should implemented from 25-07-2014 only not for previously already submitted by Auditors i.e before 25-07/2014. Otherwise This will cause undue hardship to both the taxpayer and the auditors.
Other wise please extend the due date from 31st Oct to 30th Nov.
If it is impossible, please implimented from Assessment year 2015-16.
This is my suggestion.
If financial act relating to F.Y 2014-15 is applicable for this year like increase in basic limit, increase in housing loan interest benefits, 80-C exemption and so on. This tax audit new format also can be done this year itself. if no benefit are applicable from this year means tax audit report new format also from next year. Govt should understand the difficulties of people. Govt is for the people not people for the govt.
Tax Audit report on new format should be implemented for the assessment year 2015-2016, ( financial year ended on 31/3/2015, )considering the representation made by ICAI , and the facts mentioned in this write up.
CA. Subhash Chandra Podder , FCA
Kolkata
12/8/2014
Yes definitely CBDT extend due date of tax audit report