Revised Formats of Tax Audit Report: Forms 3CA, 3CB and 3CD (FY 2017-18/ AY 2018-19)
CBDT has notified revised Tax Audit Report Forms (3CA, 3CB, 3CD) from time to time. On 20 July 2018, Form 3CD has been further revised (applicable w.e.f. 20 Aug. 2018) expanding scope of reporting relating to GST, GAAR, SFT, Cash Transactions, Transfer Pricing, etc., for FY 2017-18/ AY 2018-19. However, subsequently CBDT has deferred implementation Clauses 30C (GAAR) and 44 (GST) of revised Form 3CD, upto 31 March 2019.
Revised Tax Audit Report Forms (3CA, 3CB, 3CD) Applicable w.e.f. 20 Aug. 2018/ 1 April 2019
* Form 3CD revised on 20 July 2018 applicable w.e.f. 20 Aug. 2018. However, on 17 Aug. 2018, CBDT defers implementation of newly inserted Clause 30C (GAAR) and 44 (GST) upto 31 March 2019 based on ICAI representations.
CBDT defers Clause 30C (GAAR) and Clause 44 (GST) of Revised Tax Audit Report Form 3CD upto 31 March 2019
The CBDT has issued a Circular to defer implementation of Clause 30C on GAAR and Clause 44 on GST, of the Revised Tax Audit Report Form 3CD upto 31 March 2019, earlier notified on 20 July 2018 to be applicable from 20 Aug. 2018 in view of representations from stakeholders, like ICAI, etc. Accordingly, this partial deferment of amendments will not affect other changes made in Form 3CD applicable from 20 Aug. 2018.
In short, the CBDT has deferred implementation of certain changes in Form 3CD, upto 31 March 2019, relating to two new reporting requirements under ‘clause 30C pertaining to GAAR’ and ‘clause 44 pertaining to GST’ and hence the Tax Auditors, have been relaxed from reporting such details while furnishing Form 3CD during 20 Aug. 2018 to 31 March 2019.
However, it may be noted that relief from reporting GST details in Form 3CD is applicable only for taxpayers those who are liable to tax audit, i.e. this relief has nothing to do with ITR Form 6 requiring a company, which is not subject to tax audit, to give various details relating to GST.
ICAI Suggestions to CBDT on ‘Revised Form 3CD’ with request to implement next year
ICAI has submitted a Representation Letter to the CBDT making certain suggestions on recently revised format of Tax Audit Report in Form No. 3CD (applicable from 20 August 2018), notified on 20 July, 2018, including to defer implementation of such changes by one year, i.e. from AY 2019-20. The contents of the ICAI’s Representation Letter, however, are not yet shared on ‘ICAI Website’.
Reportedly, the ICAI has requested/ represented the CBDT that many clauses/ sub-clauses have been modified/ inserted to effect substantial changes in the format of tax audit report along with introduction of additional disclosure requirements, applicable w.e.f. 20 aug. 2018, which may not be practicable for smooth implementation/ compliance in the middle of the peak filing time of AY 2018-19. Also, the ICAI has to review all such amendments and issue revised Guidance Note on Tax audit for adherence by its Members.
Besides, ICAI has submitted various suggestions/ concerns on the changes notified by the CBDT in Form 3CD, in respect of additional disclosure requirements and has requested for participation in the deliberation process.
Accordingly, we can look forward to deferment of effective date of some/ all of the recently notified changes in Form 3CD, by one year, i.e. revised 3CD to be applicable from AY 2019-20 instead of ongoing AY 2018-19.
CBDT Notifies Amendments in Form 3CD (Tax Audit Report), applicable from 20 Aug. 2018: Income-tax (8th Amendment) Rules, 2018
The CBDT has notified the Income-tax (8th Amendment) Rules, 2018 making substantial changes in the Format of Tax Audit Report (Form 3CD), whereby new/ revised reporting requirements relating to GST, SFT, Cash Transactions, Transfer Pricing, etc. have been prescribed, applicable w.e.f. 20 Aug. 2018. However, it may be noted that subsequently the CBDT has partly deferred implementation of revised Form 3CD upto 31 March 2019: CBDT defers Clause 30C and 44 of Revised Form 3CD upto 31 March 2019.
Summarised details of amendments made in Form 3CD, notified on 20 July 2018:
|Sl.||3CD Point No.||Remarks|
|1||4 (amended)||GSTIN to be mentioned.|
|2||19 (amended)||Allowances under Section 32AD to be reported (Addl Depreciation, Inv. Allowance, etc.)|
|3||24 (amended)||Deemed gains u/s 32AD to be reported.|
|4||26 (amended)||Reporting of any sum payable to Railways u/s 43B(g) which is not allowable as deduction for non-payment.|
|5||29A (new)||Reporting of amount chargeable u/s 56(2)(ix) as ‘income from other sources’|
|6||29B (new)||Reporting of amount chargeable u/s 56(2)(x) as ‘income from other sources’|
|7||30A (new)||Reporting details of Primary Adjustments to Transfer Price u/s 92CE(1)|
|8||30B (new)||Reporting details of interest expenditure incurred exceeding one crore rupees as referred u/s 94B(1)|
|9||30C (new)||Reporting details of impermissible avoidance arrangements, as referred to in section 96|
|10||31(ba), 31(bb), 31(bc), 31(bd) (new)||Reporting details of each cash receipt or payment in excess of the limit specified u/s 269ST|
|11||31(c), 31(d), 31(e) (amended)||Clauses amended.|
|12||34(b) (amended)||Reporting details of transactions not disclosed in TDS/ TCS Returns|
|13||36A (new)||Reporting details of any dividend receipts u/s 2(22)(e)|
|14||42 (new)||Reporting details of transactions not disclosed/ specified in Form No. 61/ 61A/ 61B|
|15||43 (new)||Reporting whether assessee or its parent entity or alternate reporting entity is liable to furnish the report (CbCR) u/s 286(2)|
|16||44 (new)||Reporting Break-up of total expenditure into expenditure with registered or not registered entities under the GST|