FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE
Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

How many Tax Audit Reports a CA Can sign

How many Tax Audit Reports a CA Can sign

 How many Tax Audit Reports a CA Can sign – ICAI has received number of queries asking about How many Tax Audit Reports a CA Can sign?.
How many Tax Audit Reports a CA Can sign

How many Tax Audit Reports a CA Can sign

Revised Tax Audit Report Form 3CD for AY 2017-18 in Excel applicable from 19-07-2017

Revised Tax Audit Report Form 3CD for AY 2017-18 in Excel reflecting effect of adjustments and disclosures on account of ICDS notified u/s 145(2) and more details of loan/deposits/advances u/s 269SS, 269T effective from 19th July, 2017

CBDT vide Notification No. 88/2016-Income Tax dated 29th September, 2016 has modified the Tax audit report. Further amendments have been made vide Notification No. 88/2017 dated 3rd July, 2017.

In clause 13 D of 3CD Report, for sub-clause (d), the following shall be substituted, namely —

  • Sub-clause (d) :

Whether any adjustment is required to be made to the profits or loss for complying with the provisions of income computation and disclosure standards notified under section 145(2)

  • Sub-clause (e) :

If answer to (d) above is in the affirmative, give details of such adjustments:

Increase in profit (Rs.)Decrease in profit(Rs.)Net effect (Rs.)
ICDS IAccounting Policies
ICDS IIValuation of Inventories
ICDS IIIConstruction Contracts
ICDS IVRevenue Recognition
ICDS VTangible Fixed Assets
ICDS VIChanges in Foreign Exchange Rates
ICDS VIIGovernments Grants
ICDS VIIISecurities
ICDS IXBorrowing Costs
ICDS XProvisions, Contingent Liabilities and Contingent Assets
Total
  • Sub-clause (f) :

Disclosure as per ICDS:

(i)ICDS I-Accounting Policies
(ii)ICDS II-Valuation of Inventories
(iii)ICDS III-Construction Contracts
(iv)ICDS IV-Revenue Recognition
(v)ICDS V-Tangible Fixed Assets
(vi)ICDS VII-Governments Grants
(vii)ICDS IX Borrowing Costs
(viii )ICDS X-Provisions, Contingent Liabilities and Contingent Assets”.

How many Tax Audit Reports a CA Can sign

 How many Tax Audit Reports a CA Can sign  –Ethical Board of ICAI has issued a clarification which is reproduced as below for your reference.

Question: If there are 10 partners in a firm of Chartered Accountants, then how many tax audits reports can each partner sign in a financial year?

Answer:

As per Chapter VI of Council General Guidelines, 2008 (Tax Audit Assignments under Section 44AB of the Income Tax Act, 1961), a member of the Institute in practice shall not accept, in a financial year, more than the specified number of tax audit assignments as prescribed under Section 44AB of the Income Tax Act, 1961. The specified number of tax audit assignments under Section 44AB of the Income Tax Act, 1961 is 60.

It is further provided in Chapter VI of Council General Guidelines, 2008 that in case of firm of Chartered Accountants in practice, specified number of tax audit assignments means 60 tax audit assignments per partner of the firm, in a financial year.

Therefore, if there are 10 partners in a firm of Chartered Accountants in practice, then all the partners of the firm can collectively sign 600 tax audit reports. This maximum limit of 600 tax audit assignments may be distributed between the partners in any manner whatsoever. For instance, 1 partner can individually sign 600 tax audit reports in case remaining 9 partners are not signing any tax audit report. How many Tax Audit Reports a CA Can sign.

It is needless to say that the tax audit assignment should be in accordance with the Standard on Quality Control (SQC) 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Changes in new clause 31 of Form 3CD

  • Substitution of clause 31 in Form 3CD vide Notification No 58/2017 dated 3.7.2017 effective from 19.7.2017 read with Notification No 60/2017 dated 6.7.2017 and Clause 31 of Form 3CD hasbeen substituted to include within its fold, reporting requirements taking into consideration theamendments effected in section 269SS and 269T, including within its scope payments relating to immovable property transactions.  Further, the scope of reporting in relation to section 269T, relating to repayment of loan or deposit or specified advance, has been increased to also require reporting by the recipient of such loan or deposit or specified advance which has been repaid.So far, such reporting was required only by the payer.
123
Erstwhile Clause 31New Clause 31Changes in New Clause 31
Reporting RequirementReporting Requirement
(a)Particulars of each loan or deposit in an amount exceeding the limit specified in section 269SS taken or accepted during the previous year(a)Particulars of each loan or deposit in an amount exceeding the limit specified in section 269SS taken or accepted during the previous yearSub-clause (a) of new clause 31 requires reporting on whether such loan or deposit is taken by cheque, bank draft or ECS.  Thereafter, if the same is by cheque or bank draft, whether the same was taken or accepted by way of account payee cheque/bank draft has to be reported.  Corresponding sub-clause (a) of erstwhile clause 31 directly required reporting of whether loan or deposit was taken or acceptedotherwise than by account payee cheque or bank draft.
(b)Particulars of each specified sum in an amount exceeding the limit specified in section 269SS taken or accepted during the previous year New reporting requirement: 
Consequent to substitution of section 269SS by the Finance Act 2015 including within its scope specified sum receivable in relation to transfer of an immovable property,  sub-clause (b) of new clause 31 requires  reporting of particulars of each specified sum in an amount exceeding the limit specified in section 269SS taken or accepted during the previous year.
(b)Particulars of each repayment of loan or deposit in an amount exceeding the limit specified in section 269T made during the previous year(c)Particulars of each repayment of loan or deposit or specified advance in an amount exceeding the limit specified in section 269T made during the previous yearSub-clause (c) of new clause 31 contains reporting requirement akin to sub-clause (b) of erstwhile clause 31.Sub-clause (c) of new clause 31 requires reporting on whether repayment is made by cheque, bank draft or ECS.  Thereafter, if the same is by cheque or bank draft, then, whether the same is by way of account payee cheque/account payee bank draft has to be reported.

Corresponding sub-clause (b) of erstwhile clause 31 directly required reporting of whether repayment was made otherwise than byaccount payee cheque or bank draft.

(c)Whether the taking or accepting loan or deposit or repayment of the same were made by account payee cheque or account payee bank draft  based on the examination of books of account and other relevant documentsThere is no separate sub-clause in new clause 31 in line with sub-clause (c) of erstwhile clause 31.
(d) Particulars of repayment of loan or deposit or specified advance in an amount exceeding the limit specified in section 269T received otherwise than by a cheque or bank draft or use of ECS through a bank account  during the previous year.(i) name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) amount of loan or deposit or any specified advance received otherwise than by a cheque or bank draft or use of electronic clearing system through a bank account during the previous year.

New reporting requirement –The reporting requirement in respect of section 269T was earlier required only in case of the person making the repayment of loan or deposit or any specified advance. Under the new clause 31, reporting is also to be done by the recipient.  The recipient has to furnish the name, address and PAN (if available with him) of the payerand the amount of loan or deposit or any specified advance received –

(1)   under sub-clause (d),  in case the repayment   is received otherwise than by a cheque or bank draft or ECS

(2)   under  sub-clause (e),in case repayment is received  by a cheque or bank draft, which is not an account payee cheque or account payee bank draft

(e) Particulars of repayment of loan or deposit or specified advance in an amount exceeding the limit specified in section 269T received by a cheque or bank draft which is not an account payee cheque or bank draft during the previous year.(i) name, address and Permanent Account Number (if available with the assessee) of the payer;

(ii) amount of loan or deposit or any specified advance received by a cheque or a bank draft which is not an account payee cheque or account payee bank draft during the previous year.

How many Tax Audit Reports a CA Can sign

At CAKART www.cakart.in you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit www.cakart.in and chat with our counsellors any time. We are happy to help you make successful in your exams.

.

www.cakart.in.

Click Here to download FREE CA CS CMA Text Books.

Leave a comment

Your email address will not be published. Required fields are marked *