The CBDT has notified new Form No. 3CD prescribing some new clauses and substituting
some existing clauses requiring the tax auditors to furnish more and detailed
information . The new Form 3CD requires reporting of
all disallowable payments even if they are not debited to profit and loss
account. The additional/amended reporting as prescribed in the new Form No. 3CD are as under:
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(1)
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Registration number
in case of indirect tax liability [clause 4]:
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To furnish the registration No(s). if Assessee is
liable to pay indirect taxes (like excise duty, service tax, sales tax,
customs duty, etc.) or any other identification number allotted .
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(2)
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Relevant clauses of
section 44AB ,
under which audit has been conducted to be reported. [clause 8]
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(3)
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Address at which
books of account are kept to be
reported.
[clause 11(b)]
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(4)
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Nature of documents
examined by the tax auditor,to be specified. [clause 11(c) ]
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(5)
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Change in method of
accounting/stock valuation [clause 13 and 14]:
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The impact on financial statements to be
reported for the changes in method of accounting and method of stock
valuation.
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(6)
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Transfer of
land/building for less than stamp duty value [clause 17]:
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The details of land
or building transferred by assessee for less than stamp duty value (under
section 43CA or under section 50C) to be reported .
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(7)
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To Report deduction
under Sections 32AC/35AD/35CCC/35D[clause 19].
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(8)
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Disallowances even if they are not debited to profit and loss account
[clause
21 ]
to be reported for the following
disallowable payments:
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(i)
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Disallowance for
TDS default under Section 40(a)
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(ii)
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Disallowance for
cash payments above Rs. 20000 under section 40A(3)
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(iii)
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Disallowance for provision
for gratuity under section 40A(7)
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(iv)
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Disallowance under
Section 40A(9)
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(v)
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Particulars of any
liability of a contingent nature
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(vi)
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Amount of deduction
inadmissible under section 14A wrt expenses on exempt incomes.
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(vii)
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Interest inadmissible
under the proviso to section 36(1)(iii)
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(9)
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Deemed income under
Section 32AC Investment Allowance [clause 24 ]:
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To report deemed income which results from sale or
transfer of new asset, (if asset was acquired and installed by the assessee
for the purpose of claiming deductions under Section 32AC) within a period of
five years from the date of its installation.
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(10)
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Receipt of unlisted
shares [clause
28]:
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To report all
unlisted shares received by assessee either for inadequate consideration or
without consideration in view of section 56(2)(viia).
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(11)
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Issue of shares
above fair market value [clause 29]:
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To report all transactions of issue of shares where
consideration received by assessee exceeds its fair market value in view of
section 56(2)(viib).
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(12)
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Speculation business losses as
referred to in Section 73 [clause 32(c)]
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(13)
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Losses incurred as referred
to in Section 73A from business specified under section 35AD to be
reported. [clause 32(d)]
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(14)
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To Reporting deductions
claimed under Sections 10A/10AA [clause 33]:
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(15)
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Compliance with TCS
(Tax collected at source) provisions in addition to TDS provisions. [clause 34(a)]
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(16)
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To report on the
Timely Filing of TDS and TCS Returns. [clause 34(b)]
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(17)
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TAN no. of Assessee-in-default
if liable to pay interest, the interest payable
and interest actually paid under Section 201(1A) or 206C(7) to be reported
[clause 34(c) ].
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(18)
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Dividend
Distribution Tax [clause 36 ]:
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To report the
following reductions as referred to in Section 115-O(1A):
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i)
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Dividend received
by domestic company from its subsidiary, and
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ii)
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The amount of
dividend paid to any person for or on behalf of the New Pension System Trust
referred to in Section 10(44).
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(19)
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Cost Audits Service
Tax Audit Qualification [clause 37,38 and 39]:
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(i)
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Cost audit: The attachment of
copy of cost audit report along with Form has been substituted with reporting
only the qualifications in cost audit report BUT even when audit cost was
carried out voluntarily..
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(ii)
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Cost Audit under
Central Excise Act : The attachment of
copy of cost audit report along with Form has been substituted with reporting
of qualifications in cost audit report .
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(iii)
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Special Audit under
Service Tax(If
any service-tax audit is carried out in relation to valuation of taxable services):
To report any qualifications made in relation to valuation of taxable
services.
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(20)
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Comparative Ratios [clause 40].:
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To report total
turnover and ratios of preceding financial year as well in addition to current year figures ,
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(21)
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Demand raised or
refund issued under any other tax
laws (other
than Income Tax Act, 1961 and Wealth Tax Act, 1957): [clause 41]
to be reported along with details of relevant proceedings.
Contributed by CA Sarthak Ahuja
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