ICAI has released ‘Implementation Guide’ for ‘Revised Tax audit Report (Form 3CD)’ applicable from 20/08/2018. This guide will supplement the ICAI’s ‘Guidance Note on Tax Audit (2014)’ and provide clause-wise analysis of amendments in reporting requirements of Form 3CD notified by CBDT, for guidance of Members/ Taxpayers.
It may however be noted that CBDT has subsequently deferred the implementation of Clauses 30C (GAAR) and 44 (GST) of the revised Form 3CD upto 31/03/2022, based on representations received from stakeholders, like ICAI, etc.
ICAI has last revised the ‘Guidance Note on Tax Audit u/s 44AB‘ in the year 2014. Therefore, the ICAI has released this ‘Implementation Guide’ to support the Members to carry out ‘Tax Audits’ from 20/08/2018 using the revised Form 3CD.
This guide deals with the amendments made by CBDT vide Notification No. 33/2018 dt. 20/07/2018 only, which are applicable from 20/08/2018. Therefore, it is advisable that the existing ‘Guidance Note of ICAI on Tax Audit under section 44AB’ of the Income-tax Act, 1961 (last revised in 2014) is referred to in respect of the clause where there is no new change/ insertion is notified by CBDT. However, for amendments in Form 3CD applicable from 20/08/2018, this Implementation Guide of ICAI needs to be referred to.
Gist of Amendments in Form No. 3CD covered by ICAI’s Implementation Guide
|Sl. No.||Revised/ New Clause in Form 3CD||Page No.|
|1||Clause 4 – Liability to GST and Furnishing of GST Number||3|
|2||Clause 19 – Amounts Admissible under Section 32AD||4|
|3||Clause 24 – Amounts deemed to be Profits and Gains under section 32AD||8|
|4||Clause 26 – Sums referred to in section 43B||9|
|5||Clause 29A – Amount Chargeable under section 56(2)(ix)||11|
|6||Clause 29B – Income chargeable under section 56(2)(x)||14|
|7||Clause 30A – Secondary Transfer Pricing Adjustments||20|
|8||Clause 30B – Limitation on Interest Deduction||26|
|9||Clauses 31(ba), (bb), (bc) and (bd)||30|
|10||Clauses 31(c), (d) and (e)||39|
|12||Clause 36A – Dividend Chargeable under section 2(22)(e)||43|
|13||Clause 42 – Furnishing of Form 61, 61A and 61B||49|