CARE 4:PREPARING & UPLOADING TAX AUDIT REPORT: HOW TO SUBMIT ONLINE “TWO TAX AUDIT REPORT” OF SAME ASSESSEE

CARE 4:PREPARING & UPLOADING TAX AUDIT REPORT: HOW TO SUBMIT ONLINE “TWO TAX AUDIT REPORT” OF SAME ASSESSES

1) COMBINES DATA OF TWO TAX AUDIT REPORT AND SUBMIT AS ONE

2) IF TAX AUDIT BY TWO CAs, ANY CA SHOULD SUBMIT.

3) IT IS ADVISED TO ATTACH PHYSICAL COPIES OF BOTH TAX AUDIT REPORT TOO, FOR DISCLOSURE OF THE FACT. 

 

 

CARE 3 : 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”

 

 

CARE 2: 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.]]

 

CARE 1  : 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:

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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Meaning of Dealer Under Central Sales Tax Act

As per Central sales tax Act, 1956 Dealer means any person who, carries on [whether regularly or otherwise] the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, and includes –

A local authority, a body corporate, a company, any cooperative society or other society, club, firm, Hindu undivided family or other association of persons which carries on such business.

A factor, broker, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as herein before mentioned or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal whether disclosed or not.

An auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal.

 

What is Considered as Business Under Central Sales Tax Act

As per the Central Sales Tax Act, 1956 “Business” means it includes any trade, commerce or manufacture, or any adventure or concern in the nature of trade, Commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern.

From the above it is clear that even though your motive is not to earn any profit from that activity is will be considered as business. Even if you are doing any charity work but it includes any trade, commerce or manufacture, or any adventure then it will be treated as business for Central Sales Tax.

 

Mandatory E filling of Tax Audit Report us 44AB

​​An Assessee is liable to get his Tax Audit done by a Chartered Accountant mandatorily, if in the previous year, Person carrying on business and his total sales/ turnover exceeds Rs.1 crore. Person carrying on profession and his Gross Receipts exceed Rs.25 lakhs. Person covered under the provision of Section 44AD, 44AF, 44BB, 44BBB and claims profit lower than deemed profit.

As per Notification No.34 dated 1st May 2013, efilling of Tax Audit is mandatory from the A.Y.2013-14 onwards. As per Rule 6G, tax audit report is to be furnished in Form 3CA & Form 3CB and the particulars required to be furnished along with these tax reports should be in Form 3CD.

 

 

What happens when service involves goods?

Service tax as clear from its definition is a tax on service and not a tax on sale of goods. The various decisions given by the Courts on the constitutional validity of service tax have also clarified his aspect. There are notifications issued under service tax providing deduction/abatement in respect of the transfer of property in goods made during the provision of services and this deduction/abatement would be from the gross value charged for the service. The applicability of these notifications would depend on the nature of the services involved and the activities performed. Before opting for the benefit of these notifications, the assessee should ideally perform a cost-benefit analysis as there are associated conditions to be met to claim such deduction.