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- Changes in Tax Audit Report - AY 2018-19 | Form 3CD FY- 2017-18
Changes in Tax Audit Report - AY 2018-19 | Form 3CD FY- 2017-18
The Central Board of Direct Taxes (CBDT) has issued a notification 33/2018 on 20th July, 2018 making considerable important changes in Tax Audit Report (TAR) – Form 3CD, whereby the government has added few new clauses and amend some old ones which are applicable from 20th August, 2018.
The key amendments made in TAR format are as under:-
Revised TAR Clause No. |
Corresponding requirements for mentioned Clause No. |
Explanation |
4 |
GSTIN to be mentioned |
Here, GST Registration no. is to be mentioned by person if he is liable to pay GST and a registered taxpayer. |
19 |
Reporting of deductions under section 32AD |
In this clause, disclosure is to be made in respect of deduction claimed u/s 32AD of IT Act, 1961 i.e
|
24 |
Reporting of deemed gains under section 32AD |
|
26 |
Disclosure of any sum payable to Indian Railways for the use of railway asset (deduction allowed on actual payment basis u/s 43B of IT Act, 1961) |
This clause has been added in order to report allowability of any sum due to Indian railways for use of their asset on actual payment basis. |
29A |
Reporting regarding amount chargeable u/s 56(2)(ix) as “Income from other sources” |
Under this clause, the amount which was received as advance against a Capital Asset and later on forfeited and no transfer of such capital asset taken place has to be reported. |
29B |
Reporting regarding amount chargeable u/s 56(2)(x) as “Income from other sources” |
Under this clause, if any movable/ immovable property or any sum of money is transferred by one person to another person for no consideration or inadequate consideration then nature and amount of such transaction has to be reported. |
30A |
Details about Secondary Adjustments to Transfer Price u/s 92CE |
As per Sec 92CE, if there is any primary transfer pricing adjustments made in case of an assessee by assessee himself or assessing officer then assessee is also required to make secondary adjustment provided:
The following information required to be reported under this clause:
|
30B |
Reporting of interest expenditure incurred exceeding Rs. 1 Crore u/s 94B |
Sec 94B has been introduced in the act to limit the interest expense deduction claimed by an entity to its associated enterprises. Which further restricted to:
which ever is less. However, exemption in interest expense claimed up to Rs. 1 Crore is provided to entities having low level of interest expense on the amount borrowed from their non-resident associated enterprises. Further, taxpayers in banking and insurance business are excluded from the scope of this provision. The assessee on whom this section is applicable is required to disclose the following information:
|
30C# |
Reporting regarding Impermissible avoidance arrangements u/s 96 |
This clause requires the reporting of Impermissible Avoidance Arrangements as per GAAR (General Anti Avoidance Rule) provisions. If arrangement falls within the ambit of such rules, then nature of such arrangement and amount of tax benefit in aggregate arising to all parties of arrangement must be reported here. |
31(ba), 31(bb), 31(bc), 31(bd) |
Reporting of cash receipt or cash payment exceeding limit specified u/s 269ST |
Under this clause reporting of particulars regarding each receipt as well as each payment made in cash or cheque or bank draft (not being account payee cheque or account payee bank draft) is required to be made if it exceeds the limit as specified u/s 269ST i.e. Rs. 2 Lakh. |
34(b) |
Details of transaction not reported in TDS/TCS returns |
Previously under this clause only answer is to be given in Yes/No regarding TDS/TCS return furnished by taxpayer contains details of all transactions or not. But from now all taxpayer who have furnished TDS/TCS return require to disclose the details of all transactions which are reportable but not reported in TDS/TCS returns. |
36A |
Disclosure of amount received as Deemed Dividend u/s 2(22)(e) |
The companies in which public are not substantially interested makes any payment by way of loans and advances to person who holds 10% or more voting power or to the person in which he is substantially interested then any payment to the extent of accumulated profits shall be considered as deemed dividend which is required to be reported under this clause. |
42 |
Reporting of details of transactions not disclosed in Form no.# 61, 61A and 61B |
Form No#61- Statement containing particulars of declaration received in Form No-60 Form No#61A – Statement of Specified Financial Transactions by specified reporting persons. Form No#61B – Statement of reportable account by prescribed reporting financial institution for a calendar year. Here in this clause all the transactions which are reportable but are not reported in these forms have to be reported. |
43 |
Reporting details relating to furnishing of CbCR (Country by Country Reporting) by the taxpayer or its parent entity or alternate reporting entity |
As per Section 286, there are few companies who are liable to comply with CbCR requirements in which they need to file Form#3CEAC and 3CEAD. The entities on whom this section is applicable are require to disclose in TAR:
|
44# |
Reporting breakup of total expenditure into expenditure with registered and unregistered entities under GST |
Under this clause information regarding breakup of total expenditure incurred into expenditure with registered entities (including covered under composition scheme or exemption list) and not registered entities under GST. |
Note: # CBDT defers Clause 30C and 44 of revised Form 3CD up to 31st March, 2019.
Here we discussed in detail the amendments made in Form 3CD clause wise. However, if still you have any queries or need our professional assistance in getting your tax audit done then kindly reach us at info@hubco.in or you may drop your query here.
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