Manoj Sethia, FCA, ACS, ACMA

CA  Manoj SethiaVide notification no.  33/2014 dated 25.07.2014, CBDT has made amendments in Form 3CD and the same have been made effective for Tax Audit for assessment year 2014-15.

Broadly, the changes have been made making Tax Audit Report (TAR) more comprehensive, informative and analytical. These changes also signal linking of Direct taxes with Indirect taxes, which may lead to re-organisation of both direct and indirect taxes relating to business towards Common Audit Report for both direct taxes and indirect taxes .

Major changes :

Some of the major changes are as under :

  1. Information about applicability of Indirect taxes viz. excise duty, service tax, sales tax, customs duty, etc. is required and if applicable registration number for same is required.
  2. New clauses have been incorporated and existing clauses renumbered.
  3. Clause of section 44AB under which tax audit is being done to be specified.
  4. Previous year from…………..to……………. is to be mentioned.
  5. Address where books of accounts are kept has to be stated. If books of accounts are kept at more than one location, all such addresses have to be mentioned alongwith details of books of accounts maintained at each such location.
  6. Nature of the documents examined apart from books of accounts during audit has to be stated.
  7. More information and analysis in various tables will have to be furnished.
  8. Particulars about sale/transfer of Land and Building , consideration received and the stamp duty value thereof has to be furnished.
  9. Comparison of amount debited in Profit and Loss Account v.Amounts inadmissible under IT Act/rules has to be tabulated.

10. Information as to amounts of personal expenses, capital expenses, advertisement expenditure debited to P &L A/c has to be tabulated.

11. Details of speculation loss, deemed speculation loss has to be given in assertive manner.

12. More detailed information u/s 40,40A, 40A(3) and 40a(3A) has to be given.

13. Deemed Income u/s 56(2)(viia)/(viib) has to be reported with details.

14. Detailed information regarding TDS /TCS , return thereof and interest if any in that aspect and violation in that and disallowance due to non-deduction/delahas to be given.

15. Detailed information regarding Dividend Distribution tax has to be given.

  1. Information about adverse comment/qualification in Cost audit report, Central excise audit report, service tax audit report,etc. has to be given.
  2. Observations and Qualifications, subject to which this report is given are to be mentioned in details in the report.

Apart from that proper and more particulars are required to be provided regarding the person signing this report.

(Author may be contacted on Email- msethiaco@gmail.com)

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Tags : form 3cd (86) Manoj Sethia (3) Section 44AD (121) Tax Audit (264) Tax Audit Report (144)

0 responses to “Recent Changes in Tax Audit Report (Form No. 3CD)”

  1. Yaswant says:

    The effective date is 25 ju ly . I would like to know whether we can upload all reports signed prior to 25 July or it will require to Incorporate changes .

  2. Hiren Bhandari says:

    Sir i have a question on changes of 3CD report in Form 3CD point on 4 –

    Information about applicability of Indirect taxes viz. excise duty, service tax, sales tax, customs duty, etc. is required and if applicable registration number for same is required.

    whether this information is to be given for all branches or just a central one, like in sales tax registration is taken separate for all states then information is to be given for all the branches/states. If a assessee has more than 25 states registration in sales tax act then information is to be given for all.

  3. B.Chackrapani Warrier says:

    Thanks for the writeup.

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