PREPARING & UPLOADING TAX AUDIT REPORT: DIFFICULTIES IN QUANTITATIVE DETAILS

PREPARING & UPLOADING TAX AUDIT REPORT: Quantitative details of only principle items is to be given. However,IN MY OPINION , in case details not available, 

 

a) write nil in online Form 3CD  & 

 

b) REPORT WHY QUANTITATIVE DETAILS IS NOT PROVIDED IN THE FOLLOWING TWO PLACES:

i) IN PAPER FORM 3CD & 

ii) NOTES TO ACCOUNTS 

 

EXAMPLE: THE FOLLOWING STATEMENT SHOULD BE WRITTEN IN PAPER FORM 3CD AS WELL AS NOTES: 

“DUE TO NATURE & COMPLEXITY OF BUSINESS OF ASSESSEE, IT IS NOT POSSIBLE TO PROVIDE QUANTATIVE DETAILS”

 

 

PREPARING & UPLOADING TAX AUDIT REPORT:DO NOT SIGN TAX AUDIT REPORT ON 30TH SEPTEMBER

THE WORDS “BEFORE” USED IN SEC 44AB REQUIRES THAT TAX AUDIT MUST BE SIGNED BEFORE 30 TH SEPTEMBER. SEC 44AB IS REPRODUCED BELOW:

 ⁷²[Audit of accounts of certain persons carrying on business or profession.

 ⁷³44AB.  ⁷⁴Every person,—

          (a)  carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds  ^74a[forty lakh rupees] in any previous year  ⁷⁵[***]; or

          (b)  carrying on profession shall, if his gross receipts in profession exceed  ^75a[ten lakh rupees] in any  ⁷⁶[previous year; or

          (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under  ⁷⁷[section 44AD or section 44AE or section 44AF]  ⁷⁸[or section 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any ⁷⁹[previous year,]]  ⁸⁰[***]

                The following clause (d) shall be inserted after clause (c) of section 44AB by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2011 :

          (d)  carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AD and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his business and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

get his accounts of such previous year  ⁸¹[***] audited by an accountant before the specified date and  ⁸²[furnish by] that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :

 ⁸³[Provided that this section shall not apply to the person, who derives income of the nature referred to in  ⁸⁴[***] section 44B or  ⁸⁵[section 44BBA], on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later :

Provided further that] in a case where such person is required by or under any other law to get his accounts audited  ⁸⁶[***], it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and  ⁸⁷[furnishes by] that date the report of the audit as required under such other law and a further report  ⁸⁸[by an accountant] in the form prescribed under this section.

Explanation.—For the purposes of this section,—

           (i)  “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288;

       ⁸⁹[(ii)  “specified date”, in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the  ⁹⁰[30th day of September] of the assessment year.]]

 

 

PREPARING & UPLOADING TAX AUDIT REPORT: 

Those ca, whose NAME OR DATE OF BIRTH as per ICAI and PAN is not matching, may not be able to register at income tax site. It is request to file form 49 amendment  and get data rectified in PAN immediately.Kindly also note that the day you receive a sms that your pan amendment has been approved, you will be able to register at site whether you actually receive PAN or not.

QUERY 1 : Dear Nitesh Ji , Pl advise in case of partnership firm can only one partner sign all the reports

QUERY2:

Dear Sir

  ,

In a partnership firm , the limit is 45 per partner or 45*number of partner. In other words, can one partner sign 60 audits and other 30 totalling to 90 for a partnership firm of two or they can individually sign not more than 45 audits.

 

ANSWER: 

1) Clause 12  OF PART ONE OF SCHEDULE ONE OF CHARTERED ACCOUNTANTS ACT ALLOWS A PARTNER TO SIGN ON BEHALF OF (i)OTHER PARTNER (ii) firm

2) SIGN CAN BE EITHER DIGITAL OR PHYSICAL

3) IN MY VIEW,PARTNER CAN SIGN FORM 3CD ETC. ON BEHALF OF OTHER PARTNER

” Clause 12  OF PART ONE OF SCHEDULE ONE OF CHARTERED ACCOUNTANTS ACT  STATES THAT A CA IN PRACTICE WILL BE GUILTY IF HE Allows a person not being a member of the Institute in practice, or a member not being his partner to sign on his behalf or on behalf of his firm, any balance-sheet, P&L A/C, report or financial statements”

 

LIMIT ON NO OF TAX AUDIT:

1) A CA CAN SING UP TO 45 TAX AUDIT. 

2) IN CASE OF PARTNERSHIP FIRM , LIMIT WILL BE 45 / PARTNER.

3) AUDIT U/S 44AD WILL NOT BE INCLUDED IN THE LIMIT. SUCH REPORT WILL ALSO BE SUBMITTED ONLINE. 

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