1. PROBLEM IN ENTRY OF LARGE NO. OF FIXED ASSETS
Q1. An assessee had purchased, say 5000 assets. His details of purchase are there in schedule. Online form 3CD again requires filling each purchase. It is a huge task resulting duplicity of work.
Ans. In view of our time constraint, such fixed assets may be grouped into different blocks of assets and each of these groups can be further divided into 2 parts.
i. Assets put to use on or before 2nd October: For ease of entry in online form 3CD, we will argue that all assets were put to use on 2nd October, wherever possible.
ii. Assets put to use after 2nd October (eligible for half of depreciation): For ease of entry in online form 3CD, we will argue that all assets were put to use on 31st March, wherever possible.
It is also advised to attach the working of calculation of depreciation under the Income Tax act, 1961 as a schedule so that breakup of each group is easily visible to the IT department.
The above can be summarized in the following steps:
Step 1 – All fixed assets may be grouped into different blocks of assets.
Step 2 – Each of these groups can be further divided into 2 parts. (i) Assets put to use on or before 2nd October (ii) assets put to use after 2nd October (eligible for half of depreciation)
Step 3 – For assets brought on or before 2nd October, we can argue that those assets were put to use on 2nd October and accordingly relevant entries can be made in the online form 3CD.
Step 4 – For assets brought after 2nd October, we can argue that those assets were put to use on 31st March and accordingly relevant entries can be made in the online form 3CD.
Step 5 – Sale of assets for each of group should be entered in a separate row while filling online form 3CD.
Step 6 – It is also advised to attach the working of calculation of depreciation under the Income Tax act, 1961, as a schedule, so that breakup of each group is easily visible to the IT department.
2. PROBLEM IN VIEWING STOCK FIGURES
Q2. I filled stock details in point 28A. When after validating and saving, I reopen the form; only one stock figure is displayed.
Ans. It is the inherent problem of the software but your xml file contains the correct data. Open the xml file in Internet Explorer and check it. You can edit xml file, however you have to adopt unceremonious way to edit the xml file for the necessary correction for the item in subsequent rows of point 28A. Therefore it is advised to fill up point 28A before filling any other point from point 7 onwards.
3. PROBLEM OF DEPRECIATION IN WEBTEL SOFTWARE
Q3. We have received demand relating to AY 2012-13, for almost for all companies for which income tax return were filled using Webtel software. The demand pertains to non-deduction of deprecation u/s32 in the return processed u/s 143(1) by CPC Bangalore, as claim by us in ITR 6. I just want to know if any other user of Webtel are also facing same problem.
Ans: The Problem Was Faced Many CA Using Webtel Software Due To Non Updation. I Suggest Submitting Revised Return or Making Rectification U/S 154.
4. PROBLEM OF NO SPACE FOR COMMODITY
Q4. In online Form 3CD, nature of business is to be mentioned i.e. Trading/Manufacturing & Retailer/ Wholesaler, but there is no space given for a particular commodity, say, cloth/ medicine/ cement. What should we do?
Ans. You can select, say, retailers & thereafter choose others (i.e. 104, 204, etc as applicable).
5. PROBLEM IN CALCULATION OF NP RATIO
Q5. If any businessman having a cloth business & also keeps photocopy machine/ agent of LIC, the income from photocopy machine / commission received from LIC is used for calculating the NP ratio. If so, then in this case GP ratio is less then NP ratio. So what to do about it?
Ans. You have to calculate NP ratio as a whole of the business for which tax audit was conducted.
6. PROBLEM OF BLANK FIELDS IN SAVED DRAFT XML FILE
Q6. When we reopen draft saved xml file, many fields which we had already entered is showing blank.
Ans. The software has some inherent errors as a result when we reopen draft saved xml file, it shows blank i.e. we have to re-enter the fields again. These fields are 7(B), 8(B), 9(A), 10, 11(D), 12(B), 21(Notes), 22(A), 22 AND 23.
1. PROBLEM OF VIEWING DATA OF XML BEFORE UPLOADING
Q6. How we can view data of XML before uploading?
Ans. You can view the xml file of tax audit report prepared in e utility of department. CA P.K. Agarwalla has prepared the screen shots of the process to view the same. The process is as follows:
Go to Programme à Microsoft Office à Microsoft Office Access 2003/2007 à New blank data base à Click blank data base à A window with file name database 1 . accdb will appear on the right hand side pane. à Click on create. Your new date base is saved by default in my Documents. (You may save the same to your choice folder)
A new data base is opened. Go to and click External data à Click XML file>Browse the xml file for which you want to create/view or save the data à Click & Import XML à Click OK à Check the box “Save import steps”à Close.
Your data base is ready, on the left hand side pane the indexes for “All Tables” do appear. By clicking any Table/ any point you can easily view and save its contents presently appearing in the XML file. Once the xml file is saved and the data base is reopened it will show the updated entries lying in the XML file. If some member finds any error in the tables he can easily make corrections opening the utility.
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