Download pdf - Critical issues in Presumptive Taxation & Tax Audit

CA. PRAMOD JAINFCA, FCS, FCMA, LL.B, MIMA, DISA

CA. PRAMOD JAINFCA, FCS, FCMA, LL.B, MIMA, DISA

LUNAWAT & CO.Chartered AccountantsChartered AccountantsChartered AccountantsChartered Accountants

LUNAWAT & CO.Chartered AccountantsChartered AccountantsChartered AccountantsChartered Accountants23232323thththth March 2017, March 2017, March 2017, March 2017, AlwarAlwarAlwarAlwar23232323thththth March 2017, March 2017, March 2017, March 2017, AlwarAlwarAlwarAlwar

CRITICAL ISSUESCRITICAL ISSUES

WHAT IS TAX AUDIT??WHAT IS TAX AUDIT??WHAT IS TAX AUDIT??WHAT IS TAX AUDIT??� S. 10 (23C) (iv), (v), (vi) or (via),S. 10 (23C) (iv), (v), (vi) or (via),S. 10 (23C) (iv), (v), (vi) or (via),S. 10 (23C) (iv), (v), (vi) or (via),

� Section 10A, Section 10A, Section 10A, Section 10A,

� Section 12A(1)(b), Section 12A(1)(b), Section 12A(1)(b), Section 12A(1)(b),

� Section 44ABSection 44ABSection 44ABSection 44AB

� Section 80Section 80Section 80Section 80----IA, IA, IA, IA,

� Section 80Section 80Section 80Section 80----IB, IB, IB, IB,

� Section 80Section 80Section 80Section 80----IC, IC, IC, IC,

� Section 80Section 80Section 80Section 80----ID, ID, ID, ID,

� Section 80JJAA, Section 80JJAA, Section 80JJAA, Section 80JJAA,

� Section 80LA, Section 80LA, Section 80LA, Section 80LA,

� Section 92ESection 92ESection 92ESection 92E

� Section 115JBSection 115JBSection 115JBSection 115JB

� Section 115JCSection 115JCSection 115JCSection 115JC

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LEGISLATION FOR AY 2017LEGISLATION FOR AY 2017LEGISLATION FOR AY 2017LEGISLATION FOR AY 2017----18181818•Business Business Business Business –––– exceeds exceeds exceeds exceeds RsRsRsRs. 1 Crore. 1 Crore. 1 Crore. 1 Crore

•Profession Profession Profession Profession –––– exceeds exceeds exceeds exceeds RsRsRsRs. 50 L . 50 L . 50 L . 50 L

•Business u/s 44AD; deemed profit < 8% Business u/s 44AD; deemed profit < 8% Business u/s 44AD; deemed profit < 8% Business u/s 44AD; deemed profit < 8% /6% & /6% & /6% & /6% & TI >ANCTTI >ANCTTI >ANCTTI >ANCT

•Business u/s 44AE / 44BB / 44BBB; income is < Business u/s 44AE / 44BB / 44BBB; income is < Business u/s 44AE / 44BB / 44BBB; income is < Business u/s 44AE / 44BB / 44BBB; income is < deemed profitsdeemed profitsdeemed profitsdeemed profits

•Profession u/s 44ADA; deemed profit < 50% & TI >ANCTProfession u/s 44ADA; deemed profit < 50% & TI >ANCTProfession u/s 44ADA; deemed profit < 50% & TI >ANCTProfession u/s 44ADA; deemed profit < 50% & TI >ANCT

S. 44ABS. 44ABS. 44ABS. 44AB

•Prescribing the Forms for Report u/s Prescribing the Forms for Report u/s Prescribing the Forms for Report u/s Prescribing the Forms for Report u/s 44AB44AB44AB44ABRule 6GRule 6GRule 6GRule 6G

• Report in case of a person who is required to Report in case of a person who is required to Report in case of a person who is required to Report in case of a person who is required to get his A/get his A/get his A/get his A/cscscscs audited under any lawaudited under any lawaudited under any lawaudited under any lawForm 3CAForm 3CAForm 3CAForm 3CA

•Report in any other caseReport in any other caseReport in any other caseReport in any other caseForm 3CBForm 3CBForm 3CBForm 3CB•Particulars as required u/F 3CA or Particulars as required u/F 3CA or Particulars as required u/F 3CA or Particulars as required u/F 3CA or 3CB3CB3CB3CBForm 3CDForm 3CDForm 3CDForm 3CD

•Penalty ½% maximum Penalty ½% maximum Penalty ½% maximum Penalty ½% maximum RsRsRsRs. 1.50 L. 1.50 L. 1.50 L. 1.50 LS. 271BS. 271BS. 271BS. 271B

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TAR CEILINGTAR CEILINGTAR CEILINGTAR CEILING

� ICAI clarified in 2011 that audit ICAI clarified in 2011 that audit ICAI clarified in 2011 that audit ICAI clarified in 2011 that audit

prescribed under any statute (like DVAT, prescribed under any statute (like DVAT, prescribed under any statute (like DVAT, prescribed under any statute (like DVAT,

2004), not covered2004), not covered2004), not covered2004), not covered

� 44AD / 44AE audit not covered in limit44AD / 44AE audit not covered in limit44AD / 44AE audit not covered in limit44AD / 44AE audit not covered in limit

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304560

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PRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATION

•PGBP other than PGBP other than PGBP other than PGBP other than professionals and agentsprofessionals and agentsprofessionals and agentsprofessionals and agents44AD44AD44AD44AD

•ProfessionalsProfessionalsProfessionalsProfessionals44ADA44ADA44ADA44ADA

•Goods CarriagesGoods CarriagesGoods CarriagesGoods Carriages44AE44AE44AE44AE

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PRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATIONPRESUMPTIVE TAXATION

• Section 44ADSection 44ADSection 44ADSection 44AD

• If income If income If income If income CLAIMEDCLAIMEDCLAIMEDCLAIMED to be under to be under to be under to be under

presumptive taxation, then:presumptive taxation, then:presumptive taxation, then:presumptive taxation, then:

• No books of accounts u/s 44AANo books of accounts u/s 44AANo books of accounts u/s 44AANo books of accounts u/s 44AA

• No audit u/s 44ABNo audit u/s 44ABNo audit u/s 44ABNo audit u/s 44AB

• Deemed income of 8%/6%& aboveDeemed income of 8%/6%& aboveDeemed income of 8%/6%& aboveDeemed income of 8%/6%& above

• All deductions u/s 30 to 38 All deductions u/s 30 to 38 All deductions u/s 30 to 38 All deductions u/s 30 to 38

deemed to have been given full deemed to have been given full deemed to have been given full deemed to have been given full

effect.effect.effect.effect.

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PRESUMPTIVE TAXATION PRESUMPTIVE TAXATION PRESUMPTIVE TAXATION PRESUMPTIVE TAXATION ---- CHANGESCHANGESCHANGESCHANGES

• Limit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 CrLimit u/s 44AD increased from 1 Cr to 2 Cr

• S. 44ADA introduced for Professionals S. 44ADA introduced for Professionals S. 44ADA introduced for Professionals S. 44ADA introduced for Professionals –––– Limit Limit Limit Limit

50 Lacs 50 Lacs 50 Lacs 50 Lacs –––– Deemed Income Deemed Income Deemed Income Deemed Income ----50%50%50%50%

• For firms For firms For firms For firms ---- partners salary & interest not partners salary & interest not partners salary & interest not partners salary & interest not

allowable for business as well as professionalallowable for business as well as professionalallowable for business as well as professionalallowable for business as well as professional

• If benefit u/s 44AD not claimed in 1 year then If benefit u/s 44AD not claimed in 1 year then If benefit u/s 44AD not claimed in 1 year then If benefit u/s 44AD not claimed in 1 year then

cannot claim in next 5 years. In such case to cannot claim in next 5 years. In such case to cannot claim in next 5 years. In such case to cannot claim in next 5 years. In such case to

maintain books if income > maximum amount maintain books if income > maximum amount maintain books if income > maximum amount maintain books if income > maximum amount

not chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44ABnot chargeable to tax and audit u/s 44AB

• No similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADANo similar clause for professionals u/s 44ADA

• Advance Tax for 44AD /44ADAAdvance Tax for 44AD /44ADAAdvance Tax for 44AD /44ADAAdvance Tax for 44AD /44ADA–––– 15151515thththth MarchMarchMarchMarch

•AD AD AD AD ---- NoNoNoNo

•AB AB AB AB ---- NoNoNoNo

Trading; Turnover Trading; Turnover Trading; Turnover Trading; Turnover –––– 50L; NP 50L; NP 50L; NP 50L; NP –––– 3L; TI3L; TI3L; TI3L; TI---- ((((----)1.5L. )1.5L. )1.5L. )1.5L. Files ITRFiles ITRFiles ITRFiles ITR



Manufacturing; Turnover Manufacturing; Turnover Manufacturing; Turnover Manufacturing; Turnover –––– 80L; NP 80L; NP 80L; NP 80L; NP ---- 9L; 9L; 9L; 9L; 80IC 80IC 80IC 80IC ---- 4L; TI4L; TI4L; TI4L; TI----4L4L4L4L


•AB AB AB AB ---- YesYesYesYes

MfgMfgMfgMfg –––– TO TO TO TO –––– 40 L, NP 40 L, NP 40 L, NP 40 L, NP –––– 1 L; Trading1 L; Trading1 L; Trading1 L; Trading----TO TO TO TO –––– 40 40 40 40 L, NPL, NPL, NPL, NP----1 L; Exports 1 L; Exports 1 L; Exports 1 L; Exports –––– TO TO TO TO –––– 50 L, NP 50 L, NP 50 L, NP 50 L, NP –––– 1 L1 L1 L1 L

•AD AD AD AD –––– NoNoNoNo


Trading; Turnover Trading; Turnover Trading; Turnover Trading; Turnover ----60L; Commission 60L; Commission 60L; Commission 60L; Commission ---- 2L; NP2L; NP2L; NP2L; NP----3L; TI 4L 3L; TI 4L 3L; TI 4L 3L; TI 4L

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APPLICABILITY OF 44AD /44AB FOR AY 2017APPLICABILITY OF 44AD /44AB FOR AY 2017APPLICABILITY OF 44AD /44AB FOR AY 2017APPLICABILITY OF 44AD /44AB FOR AY 2017----18181818

APPLICABILITY OF 44AD(44ADA) /44ABAPPLICABILITY OF 44AD(44ADA) /44ABAPPLICABILITY OF 44AD(44ADA) /44ABAPPLICABILITY OF 44AD(44ADA) /44AB ---- AY 2017AY 2017AY 2017AY 2017----18181818

• AD AD AD AD ---- NoNoNoNo

• AB AB AB AB ---- YesYesYesYes

Mfg. Mfg. Mfg. Mfg. ---- Turnover Turnover Turnover Turnover –––– 120L; NP 120L; NP 120L; NP 120L; NP –––– 10 L; 8010 L; 8010 L; 8010 L; 80----IA IA IA IA –––– 7 L; 7 L; 7 L; 7 L; TITITITI----2.40L2.40L2.40L2.40L

• AD AD AD AD –––– NoNoNoNo

• ADA ADA ADA ADA ---- NoNoNoNo


TradingTradingTradingTrading---- Turnover Turnover Turnover Turnover –––– 90L; NP 90L; NP 90L; NP 90L; NP ----3L; Architect 3L; Architect 3L; Architect 3L; Architect ––––Fee Fee Fee Fee –––– 55 L; NP55 L; NP55 L; NP55 L; NP---- 15 L; TI15 L; TI15 L; TI15 L; TI----7L7L7L7L

• AD AD AD AD –––– NoNoNoNo

• ADA ADA ADA ADA ---- YesYesYesYes


Doctor Doctor Doctor Doctor –––– Trading Turnover Trading Turnover Trading Turnover Trading Turnover –––– 120L 120L 120L 120L ---- NP NP NP NP –––– 8 L; 8 L; 8 L; 8 L; Fee Fee Fee Fee –––– 27 L 27 L 27 L 27 L –––– NP 15 L; TINP 15 L; TINP 15 L; TINP 15 L; TI---- 20 L20 L20 L20 L

• AD AD AD AD ---- NoNoNoNo


Trading; Turnover Trading; Turnover Trading; Turnover Trading; Turnover ----120L; Commission 120L; Commission 120L; Commission 120L; Commission ---- 2L; NP2L; NP2L; NP2L; NP----5L; TI 4L 5L; TI 4L 5L; TI 4L 5L; TI 4L

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APPLICABILITY OF 44AD / 44AB FOR AY 2017APPLICABILITY OF 44AD / 44AB FOR AY 2017APPLICABILITY OF 44AD / 44AB FOR AY 2017APPLICABILITY OF 44AD / 44AB FOR AY 2017----18181818

ManufactManufactManufactManufacturing uring uring uring ––––

120L ; NP 120L ; NP 120L ; NP 120L ; NP –––– 12L12L12L12L

Trading Trading Trading Trading ––––85 L ; NP85 L ; NP85 L ; NP85 L ; NP----

8 L8 L8 L8 L

CommissiCommissiCommissiCommission on on on –––– 2 L; 2 L; 2 L; 2 L; NPNPNPNP---- 1L1L1L1L

ProfessioProfessioProfessioProfession n n n –––– 21 L ; 21 L ; 21 L ; 21 L ; NP NP NP NP –––– 5 L5 L5 L5 L

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SECTION 44AB CHANGESSECTION 44AB CHANGESSECTION 44AB CHANGESSECTION 44AB CHANGES–––– AY 2017AY 2017AY 2017AY 2017----18181818• 44AB limit for profession increased to 44AB limit for profession increased to 44AB limit for profession increased to 44AB limit for profession increased to

50Lacs50Lacs50Lacs50Lacs

• Audit of professionals below Audit of professionals below Audit of professionals below Audit of professionals below RsRsRsRs. 50 Lacs if . 50 Lacs if . 50 Lacs if . 50 Lacs if

receipt below 50 Lacs and s. 44ADA benefit receipt below 50 Lacs and s. 44ADA benefit receipt below 50 Lacs and s. 44ADA benefit receipt below 50 Lacs and s. 44ADA benefit

not takennot takennot takennot taken

• If benefit u/s 44AD not claimed in 1 year If benefit u/s 44AD not claimed in 1 year If benefit u/s 44AD not claimed in 1 year If benefit u/s 44AD not claimed in 1 year

then cannot claim in next 5 years. In such then cannot claim in next 5 years. In such then cannot claim in next 5 years. In such then cannot claim in next 5 years. In such

case to maintain books if income exceeds case to maintain books if income exceeds case to maintain books if income exceeds case to maintain books if income exceeds

maximum amount not chargeable to tax maximum amount not chargeable to tax maximum amount not chargeable to tax maximum amount not chargeable to tax ––––

s. 44AD(4)s. 44AD(4)s. 44AD(4)s. 44AD(4)

• Provision for assesses covered u/s 44AD(4)Provision for assesses covered u/s 44AD(4)Provision for assesses covered u/s 44AD(4)Provision for assesses covered u/s 44AD(4)

S. 44AD FINANCE BILL 2017S. 44AD FINANCE BILL 2017S. 44AD FINANCE BILL 2017S. 44AD FINANCE BILL 2017

�S. 44AD amended to provide deeming S. 44AD amended to provide deeming S. 44AD amended to provide deeming S. 44AD amended to provide deeming

profit of 6% in case of profit of 6% in case of profit of 6% in case of profit of 6% in case of amount of total amount of total amount of total amount of total

turnover or gross turnover or gross turnover or gross turnover or gross receipts received receipts received receipts received receipts received by an by an by an by an

account payee cheque or an account account payee cheque or an account account payee cheque or an account account payee cheque or an account

payee bank draft or use of electronic payee bank draft or use of electronic payee bank draft or use of electronic payee bank draft or use of electronic

clearing system through a bank account clearing system through a bank account clearing system through a bank account clearing system through a bank account

�during during during during the previous year or before the due the previous year or before the due the previous year or before the due the previous year or before the due

date specified in 139(1)date specified in 139(1)date specified in 139(1)date specified in 139(1)

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APPLICABILITYAPPLICABILITYAPPLICABILITYAPPLICABILITY----44AD /44AB FOR AY 201744AD /44AB FOR AY 201744AD /44AB FOR AY 201744AD /44AB FOR AY 2017----18181818

•Y/N

AY 2017AY 2017AY 2017AY 2017----18 18 18 18 –––– T T T T –––– RsRsRsRs. 120 Lacs . P . 120 Lacs . P . 120 Lacs . P . 120 Lacs . P –––– 10 L, TI 10 L, TI 10 L, TI 10 L, TI –––– 9 L 9 L 9 L 9 L

•N/Y

AY 2018AY 2018AY 2018AY 2018----19 19 19 19 –––– T T T T –––– RsRsRsRs. 120 Lacs . P . 120 Lacs . P . 120 Lacs . P . 120 Lacs . P –––– 8 L, TI 8 L, TI 8 L, TI 8 L, TI –––– 6 L 6 L 6 L 6 L

•N/Y

AY 2019AY 2019AY 2019AY 2019----20 20 20 20 –––– T T T T –––– RsRsRsRs. 70 Lacs . P . 70 Lacs . P . 70 Lacs . P . 70 Lacs . P ––––10 L, TI 10 L, TI 10 L, TI 10 L, TI –––– 9 L9 L9 L9 L

•N/N

AY 2020AY 2020AY 2020AY 2020----21 21 21 21 –––– T T T T –––– RsRsRsRs. 60 Lacs . P . 60 Lacs . P . 60 Lacs . P . 60 Lacs . P ––––10 L, TI 10 L, TI 10 L, TI 10 L, TI –––– 2 L 2 L 2 L 2 L

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SECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALSSECTION 44AD ESSENTIALS• Should be eligible Should be eligible Should be eligible Should be eligible assesseeassesseeassesseeassessee

• Ind., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); andInd., HUF, Firm (except LLP); and

• No s. 10A, 10AA, 10B, 10BA & No s. 10A, 10AA, 10B, 10BA & No s. 10A, 10AA, 10B, 10BA & No s. 10A, 10AA, 10B, 10BA & ChpChpChpChp VIA Part CVIA Part CVIA Part CVIA Part C

• Should be doing eligible businessShould be doing eligible businessShould be doing eligible businessShould be doing eligible business

• Any except 44AE; andAny except 44AE; andAny except 44AE; andAny except 44AE; and

• Turnover Turnover Turnover Turnover < < < < 2 2 2 2 CrsCrsCrsCrs

• Section not applicable to a person carrying:Section not applicable to a person carrying:Section not applicable to a person carrying:Section not applicable to a person carrying:

• ProfessionProfessionProfessionProfession

• Commission or brokerageCommission or brokerageCommission or brokerageCommission or brokerage

• Agency businessAgency businessAgency businessAgency business

• Deemed profit 8% / 6% or moreDeemed profit 8% / 6% or moreDeemed profit 8% / 6% or moreDeemed profit 8% / 6% or more

• Commensurate with bank account !!!Commensurate with bank account !!!Commensurate with bank account !!!Commensurate with bank account !!!

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SECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALSSECTION 44ADA ESSENTIALS

• Should be engaged in Should be engaged in Should be engaged in Should be engaged in

profession profession profession profession –––– section 44AA section 44AA section 44AA section 44AA

read with rule 6Fread with rule 6Fread with rule 6Fread with rule 6F

• Gross receipt Gross receipt Gross receipt Gross receipt < < < < 50 Lakhs50 Lakhs50 Lakhs50 Lakhs

• Deemed profit 50% or moreDeemed profit 50% or moreDeemed profit 50% or moreDeemed profit 50% or more

• Commensurate with bank Commensurate with bank Commensurate with bank Commensurate with bank

account !!!account !!!account !!!account !!!

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PROFESSIONPROFESSIONPROFESSIONPROFESSION• Section 44AA read with Rule 6FSection 44AA read with Rule 6FSection 44AA read with Rule 6FSection 44AA read with Rule 6F

• AccountancyAccountancyAccountancyAccountancy

• ArchitecturalArchitecturalArchitecturalArchitectural

• Authorised RepresentativeAuthorised RepresentativeAuthorised RepresentativeAuthorised Representative

• Company SecretaryCompany SecretaryCompany SecretaryCompany Secretary

• EngineeringEngineeringEngineeringEngineering

• Film Artist, actors, cameramen, editor……Film Artist, actors, cameramen, editor……Film Artist, actors, cameramen, editor……Film Artist, actors, cameramen, editor……

• Interior DecorationInterior DecorationInterior DecorationInterior Decoration

• LegalLegalLegalLegal

• MedicalMedicalMedicalMedical

• Technical ConsultancyTechnical ConsultancyTechnical ConsultancyTechnical Consultancy

• Information TechnologyInformation TechnologyInformation TechnologyInformation Technology

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PROFESSIONPROFESSIONPROFESSIONPROFESSION• Held as businessHeld as businessHeld as businessHeld as business

• Advertising agentAdvertising agentAdvertising agentAdvertising agent

• Clearing, forwarding & shipping agentsClearing, forwarding & shipping agentsClearing, forwarding & shipping agentsClearing, forwarding & shipping agents

• Insurance agentsInsurance agentsInsurance agentsInsurance agents

• Travel agentTravel agentTravel agentTravel agent

• Stock and share brokingStock and share brokingStock and share brokingStock and share broking

• Courier agencyCourier agencyCourier agencyCourier agency

• Nursing HomeNursing HomeNursing HomeNursing Home

• Are they covered u/s 44AD??Are they covered u/s 44AD??Are they covered u/s 44AD??Are they covered u/s 44AD??

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WHO CAN CONDUCT AUDITWHO CAN CONDUCT AUDITWHO CAN CONDUCT AUDITWHO CAN CONDUCT AUDIT

�W.e.fW.e.fW.e.fW.e.f. 1. 1. 1. 1stststst June 2015June 2015June 2015June 2015

� Accountant Accountant Accountant Accountant as defined in Explanation as defined in Explanation as defined in Explanation as defined in Explanation

below S. 288 (2)below S. 288 (2)below S. 288 (2)below S. 288 (2)

� A A A A CCCChartered Accountant hartered Accountant hartered Accountant hartered Accountant as defined in as defined in as defined in as defined in

section section section section 2 2 2 2 (1) (b) of (1) (b) of (1) (b) of (1) (b) of the Chartered the Chartered the Chartered the Chartered

Accountants Act, 1949 who holds a valid Accountants Act, 1949 who holds a valid Accountants Act, 1949 who holds a valid Accountants Act, 1949 who holds a valid

certificate of practice certificate of practice certificate of practice certificate of practice u/s u/s u/s u/s 6 6 6 6 (1) of (1) of (1) of (1) of that that that that ActActActAct

� CA in practice (can represent)CA in practice (can represent)CA in practice (can represent)CA in practice (can represent)

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QUALIFICATION QUALIFICATION QUALIFICATION QUALIFICATION ---- CACACACA� T.D. T.D. T.D. T.D. VenkataVenkataVenkataVenkata Rao v. Union of India [1999] Rao v. Union of India [1999] Rao v. Union of India [1999] Rao v. Union of India [1999]

237 ITR 315 (SC237 ITR 315 (SC237 ITR 315 (SC237 ITR 315 (SC):):):):

� Chartered Chartered Chartered Chartered Accountants, by reason of their training Accountants, by reason of their training Accountants, by reason of their training Accountants, by reason of their training

have special aptitude in the matter of audits. It is have special aptitude in the matter of audits. It is have special aptitude in the matter of audits. It is have special aptitude in the matter of audits. It is

reasonable that they, who form a class by reasonable that they, who form a class by reasonable that they, who form a class by reasonable that they, who form a class by

themselves, should be required to audit the accounts themselves, should be required to audit the accounts themselves, should be required to audit the accounts themselves, should be required to audit the accounts

of businesses…. There is no material on record and of businesses…. There is no material on record and of businesses…. There is no material on record and of businesses…. There is no material on record and

indeed in our view, there cannot be that an incomeindeed in our view, there cannot be that an incomeindeed in our view, there cannot be that an incomeindeed in our view, there cannot be that an income----

tax practitioner has the same expertise as chartered tax practitioner has the same expertise as chartered tax practitioner has the same expertise as chartered tax practitioner has the same expertise as chartered

accountants in the matter of accounts. …and it must accountants in the matter of accounts. …and it must accountants in the matter of accounts. …and it must accountants in the matter of accounts. …and it must

be pointed out that these incomebe pointed out that these incomebe pointed out that these incomebe pointed out that these income----tax practitioners tax practitioners tax practitioners tax practitioners

are still entitled to be authorised representatives of are still entitled to be authorised representatives of are still entitled to be authorised representatives of are still entitled to be authorised representatives of

assesseesassesseesassesseesassessees.”

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DISQUALIFICATION DISQUALIFICATION DISQUALIFICATION DISQUALIFICATION ---- COMPANIES COMPANIES COMPANIES COMPANIES Lunawat & Co.

DISQUALIFICATION DISQUALIFICATION DISQUALIFICATION DISQUALIFICATION –––– OTHERSOTHERSOTHERSOTHERS� AssesseeAssesseeAssesseeAssessee himself himself himself himself

� In In In In case of case of case of case of a a a a firm firm firm firm ---- any partner of the any partner of the any partner of the any partner of the firmfirmfirmfirm

� In case of AOP In case of AOP In case of AOP In case of AOP ---- member member member member of the association of the association of the association of the association

� In case of HUF In case of HUF In case of HUF In case of HUF ---- member of the familymember of the familymember of the familymember of the family

� Person Person Person Person referred to in referred to in referred to in referred to in section 13(3)(a),(b),(c), section 13(3)(a),(b),(c), section 13(3)(a),(b),(c), section 13(3)(a),(b),(c),

(cc);(cc);(cc);(cc);

� Relative of any of above personsRelative of any of above personsRelative of any of above personsRelative of any of above persons

� Other than above, person Other than above, person Other than above, person Other than above, person who is competent who is competent who is competent who is competent

to verify to verify to verify to verify return u/s 139/140; return u/s 139/140; return u/s 139/140; return u/s 139/140;

� Officer Officer Officer Officer or employee of or employee of or employee of or employee of assesseeassesseeassesseeassessee;;;;

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RELATIVE RELATIVE RELATIVE RELATIVE –––– INCOME TAX AUDITORINCOME TAX AUDITORINCOME TAX AUDITORINCOME TAX AUDITOR

� SSSSpouse pouse pouse pouse of the individual;of the individual;of the individual;of the individual;

� BBBBrother rother rother rother or sister of the individual;or sister of the individual;or sister of the individual;or sister of the individual;

� BBBBrother rother rother rother or sister of the spouse of the individual;or sister of the spouse of the individual;or sister of the spouse of the individual;or sister of the spouse of the individual;

� AAAAny ny ny ny lineal ascendant or descendant of the lineal ascendant or descendant of the lineal ascendant or descendant of the lineal ascendant or descendant of the

individual;individual;individual;individual;

� AAAAny ny ny ny lineal ascendant or descendant of the lineal ascendant or descendant of the lineal ascendant or descendant of the lineal ascendant or descendant of the

spouse of the individual;spouse of the individual;spouse of the individual;spouse of the individual;

� SSSSpouse pouse pouse pouse of a person referred of a person referred of a person referred of a person referred aboveaboveaboveabove

� AAAAny ny ny ny lineal descendant of a brother or sister of lineal descendant of a brother or sister of lineal descendant of a brother or sister of lineal descendant of a brother or sister of

either the individual or of either the individual or of either the individual or of either the individual or of spouse of individualspouse of individualspouse of individualspouse of individual

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DISQUALIFICATIONS DISQUALIFICATIONS DISQUALIFICATIONS DISQUALIFICATIONS ---- OTHERSOTHERSOTHERSOTHERS

� WWWWho ho ho ho is a partner, or who is in employment, of an is a partner, or who is in employment, of an is a partner, or who is in employment, of an is a partner, or who is in employment, of an

officer or employee of officer or employee of officer or employee of officer or employee of assesseeassesseeassesseeassessee;;;;

� WWWWho ho ho ho has been convicted by a court of an offence has been convicted by a court of an offence has been convicted by a court of an offence has been convicted by a court of an offence

involving fraud and a period of 10 years has not involving fraud and a period of 10 years has not involving fraud and a period of 10 years has not involving fraud and a period of 10 years has not

elapsed from the date of such convictionelapsed from the date of such convictionelapsed from the date of such convictionelapsed from the date of such conviction

� An An An An individual who, or his relative or partnerindividual who, or his relative or partnerindividual who, or his relative or partnerindividual who, or his relative or partner

� Is Is Is Is holding any security of or interest in holding any security of or interest in holding any security of or interest in holding any security of or interest in assesseeassesseeassesseeassessee––––

Relative Relative Relative Relative face value face value face value face value ---- RsRsRsRs. 1 L. 1 L. 1 L. 1 L

� Is indebted to the Is indebted to the Is indebted to the Is indebted to the assesseeassesseeassesseeassessee. Relative . Relative . Relative . Relative –––– RsRsRsRs. l . l . l . l LLLL

� Has given a guarantee /provided security Has given a guarantee /provided security Has given a guarantee /provided security Has given a guarantee /provided security . Relative . Relative . Relative . Relative ––––

1 1 1 1 LLLL

Lunawat & Co.

� AAAA person or a firm who, whether directly or person or a firm who, whether directly or person or a firm who, whether directly or person or a firm who, whether directly or

indirectly, has business relationship with indirectly, has business relationship with indirectly, has business relationship with indirectly, has business relationship with

assesseeassesseeassesseeassessee. i.e., . i.e., . i.e., . i.e., any transaction entered into for any transaction entered into for any transaction entered into for any transaction entered into for

commercial purpose except:commercial purpose except:commercial purpose except:commercial purpose except:

� In nature of professional services permittedIn nature of professional services permittedIn nature of professional services permittedIn nature of professional services permitted

� IIIIn n n n the the the the ordinary course of business of ordinary course of business of ordinary course of business of ordinary course of business of cocococo. . . . at at at at ALP ALP ALP ALP like like like like

� sale sale sale sale of products or of products or of products or of products or

� services services services services

� TTTTo o o o auditorauditorauditorauditor, as customer, in the ordinary course of , as customer, in the ordinary course of , as customer, in the ordinary course of , as customer, in the ordinary course of

businessbusinessbusinessbusiness, by companies engaged in , by companies engaged in , by companies engaged in , by companies engaged in business business business business of of of of

telecommunications, airlines, hospitals, hotels telecommunications, airlines, hospitals, hotels telecommunications, airlines, hospitals, hotels telecommunications, airlines, hospitals, hotels & & & &

such other similar businessessuch other similar businessessuch other similar businessessuch other similar businesses

Lunawat & Co.

DISQUALIFICATIONS DISQUALIFICATIONS DISQUALIFICATIONS DISQUALIFICATIONS –––– TAX AUDITORTAX AUDITORTAX AUDITORTAX AUDITOR

????????????

� Can a CA in practice who is giving Can a CA in practice who is giving Can a CA in practice who is giving Can a CA in practice who is giving

accounting services to a company conduct accounting services to a company conduct accounting services to a company conduct accounting services to a company conduct

tax audit of that company?tax audit of that company?tax audit of that company?tax audit of that company?

� Can an internal auditor of a company issue Can an internal auditor of a company issue Can an internal auditor of a company issue Can an internal auditor of a company issue

Form 15CB certificate for that company?Form 15CB certificate for that company?Form 15CB certificate for that company?Form 15CB certificate for that company?

� Can a CA in practice who is giving Can a CA in practice who is giving Can a CA in practice who is giving Can a CA in practice who is giving

accounting services to a company accounting services to a company accounting services to a company accounting services to a company issue issue issue issue

certificate in Form 29B for MAT certificate in Form 29B for MAT certificate in Form 29B for MAT certificate in Form 29B for MAT

calculation?calculation?calculation?calculation?

Lunawat & Co.

Lunawat & Co.

Audit ReportsAudit ReportsAudit ReportsAudit Reports

Companies Companies Companies Companies ActActActAct

CAROCAROCAROCARONonNonNonNon----CAROCAROCAROCARO

Other ActsOther ActsOther ActsOther Acts

Tax Tax Tax Tax AuditAuditAuditAudit

Form Form Form Form 3CA3CA3CA3CA

Form Form Form Form 3CB3CB3CB3CB

LLPLLPLLPLLP SocietySocietySocietySociety

FORM 3CAFORM 3CAFORM 3CAFORM 3CA� Total 3ParasTotal 3ParasTotal 3ParasTotal 3Paras

� Reporting period for PL amended from 31Reporting period for PL amended from 31Reporting period for PL amended from 31Reporting period for PL amended from 31stststst March to March to March to March to

period wise.period wise.period wise.period wise.

� Examination of books by auditor included before Examination of books by auditor included before Examination of books by auditor included before Examination of books by auditor included before

giving opiniongiving opiniongiving opiniongiving opinion

� Opinion now to be given subject to observations / Opinion now to be given subject to observations / Opinion now to be given subject to observations / Opinion now to be given subject to observations /

qualifications, no annexures … Para 3qualifications, no annexures … Para 3qualifications, no annexures … Para 3qualifications, no annexures … Para 3

� Name of signatory to be given. FRN??Name of signatory to be given. FRN??Name of signatory to be given. FRN??Name of signatory to be given. FRN??

� To be signed by person eligible as per s. 44AB To be signed by person eligible as per s. 44AB To be signed by person eligible as per s. 44AB To be signed by person eligible as per s. 44AB

(earlier CA, auditor as per Companies Act, other (earlier CA, auditor as per Companies Act, other (earlier CA, auditor as per Companies Act, other (earlier CA, auditor as per Companies Act, other

person entitled to auditperson entitled to auditperson entitled to auditperson entitled to audit

Lunawat & Co.

FORM 3CBFORM 3CBFORM 3CBFORM 3CB

�Total 5 ParasTotal 5 ParasTotal 5 ParasTotal 5 Paras

�Same as Form 3CA except examination Same as Form 3CA except examination Same as Form 3CA except examination Same as Form 3CA except examination

of booksof booksof booksof books

�Opinion subject to observations / Opinion subject to observations / Opinion subject to observations / Opinion subject to observations /

qualifications to be given:qualifications to be given:qualifications to be given:qualifications to be given:

�Financial Statements Financial Statements Financial Statements Financial Statements –––– 3(a)3(a)3(a)3(a)

�Form 3CD Form 3CD Form 3CD Form 3CD –––– 5555

�SA 700?SA 700?SA 700?SA 700?

Lunawat & Co.

SA 700SA 700SA 700SA 700� Assessee’sAssessee’sAssessee’sAssessee’s Responsibility for the Financial Statements Responsibility for the Financial Statements Responsibility for the Financial Statements Responsibility for the Financial Statements

and and and and the Statement the Statement the Statement the Statement of Particulars in Form 3CDof Particulars in Form 3CDof Particulars in Form 3CDof Particulars in Form 3CD

1.1.1.1. TheTheTheThe assessee is responsible for the preparation of the assessee is responsible for the preparation of the assessee is responsible for the preparation of the assessee is responsible for the preparation of the

aforesaid financial aforesaid financial aforesaid financial aforesaid financial statements statements statements statements that give a true and fair that give a true and fair that give a true and fair that give a true and fair

view of the view of the view of the view of the financial position financial position financial position financial position and financial performance and financial performance and financial performance and financial performance

(if applicable) in accordance (if applicable) in accordance (if applicable) in accordance (if applicable) in accordance with the with the with the with the applicable applicable applicable applicable

Accounting Standards issued by the Institute Accounting Standards issued by the Institute Accounting Standards issued by the Institute Accounting Standards issued by the Institute of of of of

Chartered Chartered Chartered Chartered Accountants of Accountants of Accountants of Accountants of India. India. India. India. This responsibility This responsibility This responsibility This responsibility

includes includes includes includes the designthe designthe designthe design, implementation and maintenance , implementation and maintenance , implementation and maintenance , implementation and maintenance

of internal control relevant of internal control relevant of internal control relevant of internal control relevant to the to the to the to the preparation and preparation and preparation and preparation and

presentation of the financial statements that presentation of the financial statements that presentation of the financial statements that presentation of the financial statements that give a give a give a give a true true true true

and fair view and are free from material misstatement, and fair view and are free from material misstatement, and fair view and are free from material misstatement, and fair view and are free from material misstatement,

whether due whether due whether due whether due to fraud or error.to fraud or error.to fraud or error.to fraud or error.

Lunawat & Co.

SA 700SA 700SA 700SA 7002.2.2.2. TheTheTheThe assessee is also responsible for the assessee is also responsible for the assessee is also responsible for the assessee is also responsible for the

preparation of the preparation of the preparation of the preparation of the statement of statement of statement of statement of particulars particulars particulars particulars

required to be furnished under section 44ABrequired to be furnished under section 44ABrequired to be furnished under section 44ABrequired to be furnished under section 44AB of of of of

the the the the IncomeIncomeIncomeIncome----tax Act, 1961 annexed herewith in tax Act, 1961 annexed herewith in tax Act, 1961 annexed herewith in tax Act, 1961 annexed herewith in

Form No. 3CD read Form No. 3CD read Form No. 3CD read Form No. 3CD read with Rule with Rule with Rule with Rule 6G(1)(b) of 6G(1)(b) of 6G(1)(b) of 6G(1)(b) of

Income Tax Rules, 1962 that give true and Income Tax Rules, 1962 that give true and Income Tax Rules, 1962 that give true and Income Tax Rules, 1962 that give true and

correct particulars correct particulars correct particulars correct particulars as per the provisions of the as per the provisions of the as per the provisions of the as per the provisions of the

IncomeIncomeIncomeIncome----tax Act, 1961 read tax Act, 1961 read tax Act, 1961 read tax Act, 1961 read with Ruleswith Ruleswith Ruleswith Rules, , , ,

Notifications , circulars Notifications , circulars Notifications , circulars Notifications , circulars etcetcetcetc that are to be that are to be that are to be that are to be

included in included in included in included in the Statementthe Statementthe Statementthe Statement....

Lunawat & Co.

SA 700SA 700SA 700SA 700� Tax Auditor’s ResponsibilityTax Auditor’s ResponsibilityTax Auditor’s ResponsibilityTax Auditor’s Responsibility

3.3.3.3. Our Our Our Our responsibility is to express an opinion on responsibility is to express an opinion on responsibility is to express an opinion on responsibility is to express an opinion on

these these these these financial statements financial statements financial statements financial statements based on based on based on based on our our our our audit. audit. audit. audit.

We We We We have conducted this audit have conducted this audit have conducted this audit have conducted this audit in accordance in accordance in accordance in accordance

with the Standards on Auditing issued by the with the Standards on Auditing issued by the with the Standards on Auditing issued by the with the Standards on Auditing issued by the

Institute Institute Institute Institute of Chartered of Chartered of Chartered of Chartered Accountants of India. Accountants of India. Accountants of India. Accountants of India.

Those Standards require that Those Standards require that Those Standards require that Those Standards require that we comply we comply we comply we comply with with with with

ethical requirements and plan and perform the ethical requirements and plan and perform the ethical requirements and plan and perform the ethical requirements and plan and perform the

audit audit audit audit to obtain to obtain to obtain to obtain reasonable assurance about reasonable assurance about reasonable assurance about reasonable assurance about

whether the financial whether the financial whether the financial whether the financial statements are statements are statements are statements are free from free from free from free from

material misstatementmaterial misstatementmaterial misstatementmaterial misstatement....

Lunawat & Co.

SA 700SA 700SA 700SA 7004.4.4.4. An audit involves performing procedures to obtain audit An audit involves performing procedures to obtain audit An audit involves performing procedures to obtain audit An audit involves performing procedures to obtain audit

evidence evidence evidence evidence about about about about the amounts and disclosures in the financial the amounts and disclosures in the financial the amounts and disclosures in the financial the amounts and disclosures in the financial

statements. statements. statements. statements. The procedures The procedures The procedures The procedures selected depend on the auditor’s selected depend on the auditor’s selected depend on the auditor’s selected depend on the auditor’s

judgment, including judgment, including judgment, including judgment, including the assessment the assessment the assessment the assessment of the risks of material of the risks of material of the risks of material of the risks of material

misstatement of the misstatement of the misstatement of the misstatement of the financial statementsfinancial statementsfinancial statementsfinancial statements, whether due to , whether due to , whether due to , whether due to

fraud or error. In making those fraud or error. In making those fraud or error. In making those fraud or error. In making those risk assessmentsrisk assessmentsrisk assessmentsrisk assessments, the auditor , the auditor , the auditor , the auditor

considers internal control relevant to considers internal control relevant to considers internal control relevant to considers internal control relevant to the preparation the preparation the preparation the preparation and fair and fair and fair and fair

presentation of the financial statements in order presentation of the financial statements in order presentation of the financial statements in order presentation of the financial statements in order to design to design to design to design

audit procedures that are appropriate in the audit procedures that are appropriate in the audit procedures that are appropriate in the audit procedures that are appropriate in the circumstances but circumstances but circumstances but circumstances but

not not not not for the purposes of expressing an opinion on the for the purposes of expressing an opinion on the for the purposes of expressing an opinion on the for the purposes of expressing an opinion on the

effectiveness effectiveness effectiveness effectiveness of the of the of the of the entity’s internal control. An audit also entity’s internal control. An audit also entity’s internal control. An audit also entity’s internal control. An audit also

includes evaluating includes evaluating includes evaluating includes evaluating the appropriateness the appropriateness the appropriateness the appropriateness of accounting policies of accounting policies of accounting policies of accounting policies

used and the used and the used and the used and the reasonableness of reasonableness of reasonableness of reasonableness of the accounting estimates the accounting estimates the accounting estimates the accounting estimates

made by management, as well made by management, as well made by management, as well made by management, as well as evaluating as evaluating as evaluating as evaluating the overall the overall the overall the overall

presentation of the financial statements.presentation of the financial statements.presentation of the financial statements.presentation of the financial statements.

Lunawat & Co.

SA 700SA 700SA 700SA 7005.5.5.5. We We We We believe that the believe that the believe that the believe that the audit evidence audit evidence audit evidence audit evidence we we we we have obtained have obtained have obtained have obtained

is is is is sufficient and sufficient and sufficient and sufficient and appropriate appropriate appropriate appropriate to provide a basis for to provide a basis for to provide a basis for to provide a basis for

our our our our audit opinion.audit opinion.audit opinion.audit opinion.

6.6.6.6. We We We We are also are also are also are also responsible for verifying the statement responsible for verifying the statement responsible for verifying the statement responsible for verifying the statement

of of of of particulars required particulars required particulars required particulars required to be furnished under section to be furnished under section to be furnished under section to be furnished under section

44AB 44AB 44AB 44AB of the Incomeof the Incomeof the Incomeof the Income----tax tax tax tax Act, 1961 Act, 1961 Act, 1961 Act, 1961 annexed herewith annexed herewith annexed herewith annexed herewith

in Form No. 3CD read with Rule 6G (1) (b) in Form No. 3CD read with Rule 6G (1) (b) in Form No. 3CD read with Rule 6G (1) (b) in Form No. 3CD read with Rule 6G (1) (b) of Incomeof Incomeof Incomeof Income----

tax tax tax tax Rules, 1962. Rules, 1962. Rules, 1962. Rules, 1962. We We We We have have have have conducted my/our conducted my/our conducted my/our conducted my/our

verification verification verification verification of the of the of the of the statement in accordance with statement in accordance with statement in accordance with statement in accordance with

Guidance Note on Tax Audit Guidance Note on Tax Audit Guidance Note on Tax Audit Guidance Note on Tax Audit under section under section under section under section 44AB of 44AB of 44AB of 44AB of

the Incomethe Incomethe Incomethe Income----tax Act, 1961, issued by the Institute tax Act, 1961, issued by the Institute tax Act, 1961, issued by the Institute tax Act, 1961, issued by the Institute of of of of

Chartered Chartered Chartered Chartered Accountants of IndiaAccountants of IndiaAccountants of IndiaAccountants of India....

Lunawat & Co.

QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT ----1111

� Proper books of account, to enable reporting in Proper books of account, to enable reporting in Proper books of account, to enable reporting in Proper books of account, to enable reporting in

form 3CD, have not been maintained by the form 3CD, have not been maintained by the form 3CD, have not been maintained by the form 3CD, have not been maintained by the

assesseeassesseeassesseeassessee....

� All the information and explanations which to the All the information and explanations which to the All the information and explanations which to the All the information and explanations which to the

best of my/our knowledge and belief were best of my/our knowledge and belief were best of my/our knowledge and belief were best of my/our knowledge and belief were

necessary for the purpose of my/our audit has necessary for the purpose of my/our audit has necessary for the purpose of my/our audit has necessary for the purpose of my/our audit has

been provided by the assesseebeen provided by the assesseebeen provided by the assesseebeen provided by the assessee....

� Documents necessary to verify the reportable Documents necessary to verify the reportable Documents necessary to verify the reportable Documents necessary to verify the reportable

transaction were not made availabletransaction were not made availabletransaction were not made availabletransaction were not made available....

� Proper stock records are not maintained by the Proper stock records are not maintained by the Proper stock records are not maintained by the Proper stock records are not maintained by the

assessee.assessee.assessee.assessee.

Lunawat & Co.

QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT QUALIFICATIONS IN REPORT ---- 2222

� Valuation of closing stock is not possibleValuation of closing stock is not possibleValuation of closing stock is not possibleValuation of closing stock is not possible....

� Yield/percentage of wastage is not ascertainableYield/percentage of wastage is not ascertainableYield/percentage of wastage is not ascertainableYield/percentage of wastage is not ascertainable....

� Records necessary to verify personal nature of Records necessary to verify personal nature of Records necessary to verify personal nature of Records necessary to verify personal nature of

expenses not maintained by the expenses not maintained by the expenses not maintained by the expenses not maintained by the assesseeassesseeassesseeassessee

� TDS returns could not be verified by with the books TDS returns could not be verified by with the books TDS returns could not be verified by with the books TDS returns could not be verified by with the books

of accountof accountof accountof account....

� Records produced for verification of payments Records produced for verification of payments Records produced for verification of payments Records produced for verification of payments

through account payee through account payee through account payee through account payee chequechequechequecheque were not were not were not were not sufficientsufficientsufficientsufficient

� Amount of expense related to exempted income Amount of expense related to exempted income Amount of expense related to exempted income Amount of expense related to exempted income

u/s 14A of Income tax Act, 1961 could not be u/s 14A of Income tax Act, 1961 could not be u/s 14A of Income tax Act, 1961 could not be u/s 14A of Income tax Act, 1961 could not be

ascertainedascertainedascertainedascertained

Lunawat & Co.


� Creditors under Micro, Small and Medium Creditors under Micro, Small and Medium Creditors under Micro, Small and Medium Creditors under Micro, Small and Medium

Enterprises Development Act, 2006 are not Enterprises Development Act, 2006 are not Enterprises Development Act, 2006 are not Enterprises Development Act, 2006 are not

ascertainableascertainableascertainableascertainable

� Prior period expenses are not ascertainable from Prior period expenses are not ascertainable from Prior period expenses are not ascertainable from Prior period expenses are not ascertainable from

books of books of books of books of accountaccountaccountaccount

� Fair market value of shares u/s 56(2) (Fair market value of shares u/s 56(2) (Fair market value of shares u/s 56(2) (Fair market value of shares u/s 56(2) (viiaviiaviiaviia) / () / () / () / (viibviibviibviib) ) ) )

is not ascertainableis not ascertainableis not ascertainableis not ascertainable....

� Reports of audits carried by Excise/Service tax Reports of audits carried by Excise/Service tax Reports of audits carried by Excise/Service tax Reports of audits carried by Excise/Service tax

Department were not made Department were not made Department were not made Department were not made availableavailableavailableavailable

� GP ratio is not ascertainable from the financial GP ratio is not ascertainable from the financial GP ratio is not ascertainable from the financial GP ratio is not ascertainable from the financial

statements prepared by the assessee.statements prepared by the assessee.statements prepared by the assessee.statements prepared by the assessee.

Lunawat & Co.


� Information regarding demand raised or refund Information regarding demand raised or refund Information regarding demand raised or refund Information regarding demand raised or refund

issued during the previous year under any tax laws issued during the previous year under any tax laws issued during the previous year under any tax laws issued during the previous year under any tax laws

other than Incomeother than Incomeother than Incomeother than Income----tax act, 1961 and Wealth tax tax act, 1961 and Wealth tax tax act, 1961 and Wealth tax tax act, 1961 and Wealth tax

Act, 1957 were not made Act, 1957 were not made Act, 1957 were not made Act, 1957 were not made availableavailableavailableavailable

� OthersOthersOthersOthers

� Mandatory that observations in 3CD on which Mandatory that observations in 3CD on which Mandatory that observations in 3CD on which Mandatory that observations in 3CD on which

opinion cannot be given be reported in Form 3CA / opinion cannot be given be reported in Form 3CA / opinion cannot be given be reported in Form 3CA / opinion cannot be given be reported in Form 3CA /

Form 3CBForm 3CBForm 3CBForm 3CB

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– OVERVIEWOVERVIEWOVERVIEWOVERVIEWLunawat & Co.

3CD3CD3CD3CD

Part APart APart APart A 1111----8888 2 New 2 New 2 New 2 New

Part BPart BPart BPart B 9999----41414141

5 New5 New5 New5 New

AmendmeAmendmeAmendmeAmendmentsntsntsnts

Clause 13 Clause 13 Clause 13 Clause 13 w.e.fw.e.fw.e.fw.e.f. . . .

1.4.20171.4.20171.4.20171.4.2017

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– OVERVIEWOVERVIEWOVERVIEWOVERVIEW�Purpose was to facilitate determination of Purpose was to facilitate determination of Purpose was to facilitate determination of Purpose was to facilitate determination of

income from business or professionincome from business or professionincome from business or professionincome from business or profession

�Now Capital Gain Now Capital Gain Now Capital Gain Now Capital Gain –––– 50C and other sources 50C and other sources 50C and other sources 50C and other sources

also covered also covered also covered also covered –––– 56 (shares)56 (shares)56 (shares)56 (shares)

�Read and understand all clauses and Read and understand all clauses and Read and understand all clauses and Read and understand all clauses and

relevant sectionsrelevant sectionsrelevant sectionsrelevant sections

�Obtain Form 3CD duly authenticated by Obtain Form 3CD duly authenticated by Obtain Form 3CD duly authenticated by Obtain Form 3CD duly authenticated by

assesseeassesseeassesseeassessee

�New 143(1) New 143(1) New 143(1) New 143(1) –––– Tax Audit Report adjustmentTax Audit Report adjustmentTax Audit Report adjustmentTax Audit Report adjustment

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– NEW CLAUSE NEW CLAUSE NEW CLAUSE NEW CLAUSE ---- 4444

� Indirect Tax Registration Indirect Tax Registration Indirect Tax Registration Indirect Tax Registration NosNosNosNos to be givento be givento be givento be given

if liable to if liable to if liable to if liable to pay pay pay pay i.e., i.e., i.e., i.e.,

�Central Central Central Central Excise Duty, Excise Duty, Excise Duty, Excise Duty,

�Central Customs Duty, Central Customs Duty, Central Customs Duty, Central Customs Duty,

�Service Tax, Service Tax, Service Tax, Service Tax,

�Sales Tax /VAT Sales Tax /VAT Sales Tax /VAT Sales Tax /VAT –––– State Wise,State Wise,State Wise,State Wise,

�State Excise Duty State Excise Duty State Excise Duty State Excise Duty –––– State Wise State Wise State Wise State Wise

�Others Indirect tax.Others Indirect tax.Others Indirect tax.Others Indirect tax.

� Is it indirect tax audit?Is it indirect tax audit?Is it indirect tax audit?Is it indirect tax audit?

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– NEW CLAUSE NEW CLAUSE NEW CLAUSE NEW CLAUSE ---- 8888�RRRRelevant clause u/s 44AB under which elevant clause u/s 44AB under which elevant clause u/s 44AB under which elevant clause u/s 44AB under which

audit is done to be given audit is done to be given audit is done to be given audit is done to be given

a)a)a)a) Business Business Business Business –––– exceeds exceeds exceeds exceeds RsRsRsRs. 1 Cr.. 1 Cr.. 1 Cr.. 1 Cr.

b)b)b)b) Profession Profession Profession Profession –––– exceeds exceeds exceeds exceeds RsRsRsRs. 50 Lacs. 50 Lacs. 50 Lacs. 50 Lacs

c)c)c)c) Lower deemed profits u/s Lower deemed profits u/s Lower deemed profits u/s Lower deemed profits u/s

1)1)1)1) 44AE, 44AE, 44AE, 44AE,

2)2)2)2) 44BB, 44BB, 44BB, 44BB,

3)3)3)3) 44BBB44BBB44BBB44BBB

d)d)d)d) Lower deemed profits u/s 44AD & income Lower deemed profits u/s 44AD & income Lower deemed profits u/s 44AD & income Lower deemed profits u/s 44AD & income

exceeds maximum exceeds maximum exceeds maximum exceeds maximum amtamtamtamt not chargeable to taxnot chargeable to taxnot chargeable to taxnot chargeable to tax

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD ––––CLAUSE CLAUSE CLAUSE CLAUSE ---- 11111111� Whether books prescribed u/s 44AA? If yes, list of Whether books prescribed u/s 44AA? If yes, list of Whether books prescribed u/s 44AA? If yes, list of Whether books prescribed u/s 44AA? If yes, list of

books prescribed.books prescribed.books prescribed.books prescribed.

� List of books maintained &address at which maintainedList of books maintained &address at which maintainedList of books maintained &address at which maintainedList of books maintained &address at which maintained

� List of books of a/List of books of a/List of books of a/List of books of a/cscscscs & nature of relevant documents & nature of relevant documents & nature of relevant documents & nature of relevant documents

examined.examined.examined.examined.

� S. 2(12A) S. 2(12A) S. 2(12A) S. 2(12A) ---- books books books books or books of or books of or books of or books of a/c a/c a/c a/c includes ledgers, dayincludes ledgers, dayincludes ledgers, dayincludes ledgers, day----

books, cash books, accountbooks, cash books, accountbooks, cash books, accountbooks, cash books, account----books books books books & & & & other books, other books, other books, other books,

whether kept in whether kept in whether kept in whether kept in written written written written form or ..electronic.form or ..electronic.form or ..electronic.form or ..electronic.

� Relevant documents Relevant documents Relevant documents Relevant documents ---- directly directly directly directly related to transactions related to transactions related to transactions related to transactions

reflected reflected reflected reflected in in in in books of books of books of books of a/a/a/a/cscscscs like invoicelike invoicelike invoicelike invoice, , , , bank bank bank bank statementsstatementsstatementsstatements, , , ,

vouchers, vouchers, vouchers, vouchers, dr. notedr. notedr. notedr. note, , , , cr. notecr. notecr. notecr. note, inventory register, inventory register, inventory register, inventory register, , , ,

agreements /contracts agreements /contracts agreements /contracts agreements /contracts or any other document on or any other document on or any other document on or any other document on basis basis basis basis

of which preliminary entries are passed in of which preliminary entries are passed in of which preliminary entries are passed in of which preliminary entries are passed in books books books books of of of of a/a/a/a/cscscscs

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD ––––CLAUSE CLAUSE CLAUSE CLAUSE ---- 13131313� Method of accounting employed in previous yearMethod of accounting employed in previous yearMethod of accounting employed in previous yearMethod of accounting employed in previous year

� Change in method of accounting appliedChange in method of accounting appliedChange in method of accounting appliedChange in method of accounting applied

� If, yes, effect thereof on profit / lossIf, yes, effect thereof on profit / lossIf, yes, effect thereof on profit / lossIf, yes, effect thereof on profit / loss

� Deviation in method of accounting from Deviation in method of accounting from Deviation in method of accounting from Deviation in method of accounting from

accounting standards prescribed u/s 145 and accounting standards prescribed u/s 145 and accounting standards prescribed u/s 145 and accounting standards prescribed u/s 145 and

effect thereof on P/Leffect thereof on P/Leffect thereof on P/Leffect thereof on P/L

� Change in method of valuation of inventories to Change in method of valuation of inventories to Change in method of valuation of inventories to Change in method of valuation of inventories to

be reported?be reported?be reported?be reported?

� Change in accounting policy to be reported?Change in accounting policy to be reported?Change in accounting policy to be reported?Change in accounting policy to be reported?

� ICDS reporting brought in ICDS reporting brought in ICDS reporting brought in ICDS reporting brought in w.e.fw.e.fw.e.fw.e.f. 1.4.2017. 1.4.2017. 1.4.2017. 1.4.2017

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD ––––CLAUSE CLAUSE CLAUSE CLAUSE ---- 13131313�((((d) d) d) d) –––– whether any adjustment is required to whether any adjustment is required to whether any adjustment is required to whether any adjustment is required to

be made to the profits or loss for complying be made to the profits or loss for complying be made to the profits or loss for complying be made to the profits or loss for complying

with the ICDS notified u/s 145(2)with the ICDS notified u/s 145(2)with the ICDS notified u/s 145(2)with the ICDS notified u/s 145(2)

� (e) (e) (e) (e) –––– Is, yes, give detailsIs, yes, give detailsIs, yes, give detailsIs, yes, give details

� (f) (f) (f) (f) –––– Disclosure as per ICDSDisclosure as per ICDSDisclosure as per ICDSDisclosure as per ICDS

�For 8 standardsFor 8 standardsFor 8 standardsFor 8 standards

�Two omitted as no disclosure required as per Two omitted as no disclosure required as per Two omitted as no disclosure required as per Two omitted as no disclosure required as per

the standard:the standard:the standard:the standard:

�Changes in Foreign Exchange RatesChanges in Foreign Exchange RatesChanges in Foreign Exchange RatesChanges in Foreign Exchange Rates

�SecuritiesSecuritiesSecuritiesSecurities

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD ––––CLAUSE CLAUSE CLAUSE CLAUSE –––– 13 13 13 13 ---- ICDSICDSICDSICDSLunawat & Co.

ICD

S

Name of ICDS Increase

in Profit

Decrease

in Profit

Net

(Rs.)

I Accounting Policies

II Valuation of Inventories

III Construction Contracts

IV Revenue Recognition

V Tangible Fixed Assets

VI Changes in Foreign Exchange Rates

VII Government Grants

VIII Securities

IX Borrowing Costs

X Provisions, Contingent Liab. & Assets

Total


�Conversion of capital asset into stock in Conversion of capital asset into stock in Conversion of capital asset into stock in Conversion of capital asset into stock in

tradetradetradetrade

�Accounting of inventories in books?Accounting of inventories in books?Accounting of inventories in books?Accounting of inventories in books?

�At Carrying costAt Carrying costAt Carrying costAt Carrying cost

�FMVFMVFMVFMV

� If other than carrying cost then If other than carrying cost then If other than carrying cost then If other than carrying cost then

qualification regarding nonqualification regarding nonqualification regarding nonqualification regarding non---- compliance compliance compliance compliance

of ASof ASof ASof AS----2222

Lunawat & Co.


�LLLLand or building or both transferred at and or building or both transferred at and or building or both transferred at and or building or both transferred at

less that the circle rate u/s 43CA or 50C. less that the circle rate u/s 43CA or 50C. less that the circle rate u/s 43CA or 50C. less that the circle rate u/s 43CA or 50C.

�Detail to be given:Detail to be given:Detail to be given:Detail to be given:

�Detail of property with complete addressDetail of property with complete addressDetail of property with complete addressDetail of property with complete address

�Consideration received or accruedConsideration received or accruedConsideration received or accruedConsideration received or accrued

�Value adopted or assessed / assessableValue adopted or assessed / assessableValue adopted or assessed / assessableValue adopted or assessed / assessable

�Builders !!!Builders !!!Builders !!!Builders !!!

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE ---- 18181818� Depreciation allowable Depreciation allowable Depreciation allowable Depreciation allowable –––– Additional Dep.Additional Dep.Additional Dep.Additional Dep.

� Actual Cost or WDV Actual Cost or WDV Actual Cost or WDV Actual Cost or WDV

� Car 1Car 1Car 1Car 1stststst InsuranceInsuranceInsuranceInsurance

� Interest Interest Interest Interest uptouptouptoupto asset put to useasset put to useasset put to useasset put to use

� S. 35 capital assets not to be includedS. 35 capital assets not to be includedS. 35 capital assets not to be includedS. 35 capital assets not to be included

� Additions/deductions during Additions/deductions during Additions/deductions during Additions/deductions during year year year year with dates ; in with dates ; in with dates ; in with dates ; in

case of any addition of an asset, date put to use; case of any addition of an asset, date put to use; case of any addition of an asset, date put to use; case of any addition of an asset, date put to use;

including adjustments on including adjustments on including adjustments on including adjustments on a/c a/c a/c a/c ofofofof

� CENVAT / VAT credits CENVAT / VAT credits CENVAT / VAT credits CENVAT / VAT credits claimed claimed claimed claimed & allowed & allowed & allowed & allowed ---- reconcilereconcilereconcilereconcile

� Change in rate of exchange of Change in rate of exchange of Change in rate of exchange of Change in rate of exchange of currencycurrencycurrencycurrency –––– AS 11/43AAS 11/43AAS 11/43AAS 11/43A

� Subsidy Subsidy Subsidy Subsidy / / / / grant /grant /grant /grant / reimbursement, reimbursement, reimbursement, reimbursement, etcetcetcetc

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE ---- 19191919�Amounts admissible. Details:Amounts admissible. Details:Amounts admissible. Details:Amounts admissible. Details:

�Amounts debited to PLAmounts debited to PLAmounts debited to PLAmounts debited to PL

�Amounts admissible under IT provisions and Amounts admissible under IT provisions and Amounts admissible under IT provisions and Amounts admissible under IT provisions and

also fulfils conditionsalso fulfils conditionsalso fulfils conditionsalso fulfils conditions

�S. 32AC (investment in new Plant & Mach) S. 32AC (investment in new Plant & Mach) S. 32AC (investment in new Plant & Mach) S. 32AC (investment in new Plant & Mach)

addedaddedaddedadded

�S. 35AD(specified business) addedS. 35AD(specified business) addedS. 35AD(specified business) addedS. 35AD(specified business) added

�S. 35CCC (agricultural extension project) S. 35CCC (agricultural extension project) S. 35CCC (agricultural extension project) S. 35CCC (agricultural extension project)

addedaddedaddedadded

�S. 35CCD (skill development project) addedS. 35CCD (skill development project) addedS. 35CCD (skill development project) addedS. 35CCD (skill development project) added

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE ---- 19191919� S. 35 (scientific research) bifurcated into S. 35 (scientific research) bifurcated into S. 35 (scientific research) bifurcated into S. 35 (scientific research) bifurcated into ––––

� 35(1)(35(1)(35(1)(35(1)(iiii) ) ) ) –––– revenue expenditurerevenue expenditurerevenue expenditurerevenue expenditure

� 35(1)(ii) 35(1)(ii) 35(1)(ii) 35(1)(ii) –––– 175% of amount paid to University, 175% of amount paid to University, 175% of amount paid to University, 175% of amount paid to University, etcetcetcetc

� 35(1)(35(1)(35(1)(35(1)(iiaiiaiiaiia) ) ) ) –––– 125% of amount paid to company…125% of amount paid to company…125% of amount paid to company…125% of amount paid to company…

� 35(1)(iii) 35(1)(iii) 35(1)(iii) 35(1)(iii) –––– 125% of amount paid for research in 125% of amount paid for research in 125% of amount paid for research in 125% of amount paid for research in

social science or statistical research…..social science or statistical research…..social science or statistical research…..social science or statistical research…..

� 35(1)(iv) 35(1)(iv) 35(1)(iv) 35(1)(iv) –––– Capital expenditureCapital expenditureCapital expenditureCapital expenditure

� 35(2AA) 35(2AA) 35(2AA) 35(2AA) –––– 200% of sum paid to National 200% of sum paid to National 200% of sum paid to National 200% of sum paid to National

Laboratory….Laboratory….Laboratory….Laboratory….

� 35(2AB) 35(2AB) 35(2AB) 35(2AB) –––– Company in bio technology or Mfg..200%Company in bio technology or Mfg..200%Company in bio technology or Mfg..200%Company in bio technology or Mfg..200%

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 21(A)21(A)21(A)21(A)

�Furnish Furnish Furnish Furnish the details of amounts debited the details of amounts debited the details of amounts debited the details of amounts debited

to the profit and loss account, being in to the profit and loss account, being in to the profit and loss account, being in to the profit and loss account, being in

the nature of Capital, personal, the nature of Capital, personal, the nature of Capital, personal, the nature of Capital, personal,

advertisement expenditure advertisement expenditure advertisement expenditure advertisement expenditure club fee, club fee, club fee, club fee,

etcetcetcetc::::

�Loss on sale of AssetsLoss on sale of AssetsLoss on sale of AssetsLoss on sale of Assets

�Fee for increase in authorised CapitalFee for increase in authorised CapitalFee for increase in authorised CapitalFee for increase in authorised Capital

�Loss on sale of investmentsLoss on sale of investmentsLoss on sale of investmentsLoss on sale of investments

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 21(B)21(B)21(B)21(B)� S. 40(a) bifurcated into (S. 40(a) bifurcated into (S. 40(a) bifurcated into (S. 40(a) bifurcated into (iiii), (), (), (), (iaiaiaia), (), (), (), (icicicic), (), (), (), (iiaiiaiiaiia), (), (), (), (iibiibiibiib), ), ), ),

(iii), (iv), (v). (iii), (iv), (v). (iii), (iv), (v). (iii), (iv), (v). 40(a)(40(a)(40(a)(40(a)(iiii) ) ) ) ---- details:details:details:details:

�Payment Payment Payment Payment on which on which on which on which tax not deductedtax not deductedtax not deductedtax not deducted

�PPPPayment on which ayment on which ayment on which ayment on which tax has been deducted but has not been tax has been deducted but has not been tax has been deducted but has not been tax has been deducted but has not been

paid paid paid paid during P.Y. or in subsequent year before the expiry of during P.Y. or in subsequent year before the expiry of during P.Y. or in subsequent year before the expiry of during P.Y. or in subsequent year before the expiry of

time prescribed u/s 200(1) time prescribed u/s 200(1) time prescribed u/s 200(1) time prescribed u/s 200(1)

�Apart from date, amount and nature of paymentApart from date, amount and nature of paymentApart from date, amount and nature of paymentApart from date, amount and nature of payment, , , , name & name & name & name &

address of payee, PAN if available address of payee, PAN if available address of payee, PAN if available address of payee, PAN if available also to be given also to be given also to be given also to be given

�Amount Amount Amount Amount of tax deducted (when deducted) also to be givenof tax deducted (when deducted) also to be givenof tax deducted (when deducted) also to be givenof tax deducted (when deducted) also to be given

�Full Full Full Full amount amount amount amount disallowabledisallowabledisallowabledisallowable–––– 139(1139(1139(1139(1) ??) ??) ??) ??–––– 15CA /15CB reliance15CA /15CB reliance15CA /15CB reliance15CA /15CB reliance

� Amounts Amounts Amounts Amounts inadmissible u/s 40(inadmissible u/s 40(inadmissible u/s 40(inadmissible u/s 40(iaiaiaia) ) ) ) –––– 30303030% % % % ---- all all all all

payments covered nowpayments covered nowpayments covered nowpayments covered now

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 21(B)21(B)21(B)21(B)� S. 40(a)(S. 40(a)(S. 40(a)(S. 40(a)(icicicic) ) ) ) ---- FBTFBTFBTFBT

� S. 40(a)(S. 40(a)(S. 40(a)(S. 40(a)(iiaiiaiiaiia) ) ) ) ---- WTWTWTWT

� S. 40(a)(S. 40(a)(S. 40(a)(S. 40(a)(iibiibiibiib) ) ) ) –––– Royalty etc. to SGRoyalty etc. to SGRoyalty etc. to SGRoyalty etc. to SG

� S. 40(a)(iii) S. 40(a)(iii) S. 40(a)(iii) S. 40(a)(iii) –––– Salaries paid outside India or to Salaries paid outside India or to Salaries paid outside India or to Salaries paid outside India or to

NonNonNonNon---- residents if tax not paid on it or not residents if tax not paid on it or not residents if tax not paid on it or not residents if tax not paid on it or not

deducted u/C XVIIB deducted u/C XVIIB deducted u/C XVIIB deducted u/C XVIIB –––– details to be givendetails to be givendetails to be givendetails to be given

� S. 40(a)(iv) S. 40(a)(iv) S. 40(a)(iv) S. 40(a)(iv) –––– Payment to PF or other fund Payment to PF or other fund Payment to PF or other fund Payment to PF or other fund

unless unless unless unless assesseeassesseeassesseeassessee has made effective has made effective has made effective has made effective

arrangement for TDS if chargeable under head arrangement for TDS if chargeable under head arrangement for TDS if chargeable under head arrangement for TDS if chargeable under head

salariessalariessalariessalaries

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 21(B)21(B)21(B)21(B)� S. 40(a)(v) S. 40(a)(v) S. 40(a)(v) S. 40(a)(v) –––– Tax paid by employer u/s Tax paid by employer u/s Tax paid by employer u/s Tax paid by employer u/s

10(10CC)10(10CC)10(10CC)10(10CC)

� Disallowance u/s 40A(3)Disallowance u/s 40A(3)Disallowance u/s 40A(3)Disallowance u/s 40A(3)

�No certificate required now. No certificate required now. No certificate required now. No certificate required now.

�However to be obtained and mention in 3CD & 3CBHowever to be obtained and mention in 3CD & 3CBHowever to be obtained and mention in 3CD & 3CBHowever to be obtained and mention in 3CD & 3CB

�Detail to be given:Detail to be given:Detail to be given:Detail to be given:

�Date of paymentDate of paymentDate of paymentDate of payment

�Nature of paymentNature of paymentNature of paymentNature of payment

�AmountAmountAmountAmount

�Name of PayeeName of PayeeName of PayeeName of Payee

�PAN (if available)PAN (if available)PAN (if available)PAN (if available)

� 40A(3A) also covered 40A(3A) also covered 40A(3A) also covered 40A(3A) also covered –––– same detailssame detailssame detailssame details

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 25252525� Profit chargeable u/s 41 Profit chargeable u/s 41 Profit chargeable u/s 41 Profit chargeable u/s 41 –––– details required:details required:details required:details required:

� Name of person; Amount of income; relevant subName of person; Amount of income; relevant subName of person; Amount of income; relevant subName of person; Amount of income; relevant sub----sectionsectionsectionsection

� Description of transaction; Computation, if anyDescription of transaction; Computation, if anyDescription of transaction; Computation, if anyDescription of transaction; Computation, if any

� S. 41(1)(a) S. 41(1)(a) S. 41(1)(a) S. 41(1)(a) –––– Cessation of trading liability by Cessation of trading liability by Cessation of trading liability by Cessation of trading liability by assesseeassesseeassesseeassessee

� S. 41(1)(b) S. 41(1)(b) S. 41(1)(b) S. 41(1)(b) ---- Cessation of trading Cessation of trading Cessation of trading Cessation of trading liabliabliabliab. by successor . by successor . by successor . by successor assesseeassesseeassesseeassessee

� S. 41(2) S. 41(2) S. 41(2) S. 41(2) –––– Balancing ChargeBalancing ChargeBalancing ChargeBalancing Charge

� S. 41(3) S. 41(3) S. 41(3) S. 41(3) –––– Asset used u/s 35 sold Asset used u/s 35 sold Asset used u/s 35 sold Asset used u/s 35 sold –––– to extent of deduction to extent of deduction to extent of deduction to extent of deduction

claimedclaimedclaimedclaimed

� S. 41(4) S. 41(4) S. 41(4) S. 41(4) –––– Recovery of bad debtsRecovery of bad debtsRecovery of bad debtsRecovery of bad debts

� S. 41(4A) S. 41(4A) S. 41(4A) S. 41(4A) –––– Amount withdrawn from special reserve u/s Amount withdrawn from special reserve u/s Amount withdrawn from special reserve u/s Amount withdrawn from special reserve u/s

36(1)(viii)36(1)(viii)36(1)(viii)36(1)(viii)

� S. 41 (5) S. 41 (5) S. 41 (5) S. 41 (5) –––– After closure of business if income u/After closure of business if income u/After closure of business if income u/After closure of business if income u/ssssssss 1,3,4, 1,3,4, 1,3,4, 1,3,4,

4A, then can be set off against loss4A, then can be set off against loss4A, then can be set off against loss4A, then can be set off against loss

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 26262626� S. 43B. Amounts covered:S. 43B. Amounts covered:S. 43B. Amounts covered:S. 43B. Amounts covered:

� CST, VAT, Excise, CST, VAT, Excise, CST, VAT, Excise, CST, VAT, Excise, ServiceTaxServiceTaxServiceTaxServiceTax, Customs, , Customs, , Customs, , Customs, PropertytaxPropertytaxPropertytaxPropertytax etcetcetcetc

� Sum Sum Sum Sum payable as an employer by way of contribution payable as an employer by way of contribution payable as an employer by way of contribution payable as an employer by way of contribution

to any to any to any to any PF or PF or PF or PF or superannuation fund or gratuity fund superannuation fund or gratuity fund superannuation fund or gratuity fund superannuation fund or gratuity fund etcetcetcetc

� BBBBonus onus onus onus or commission payable or commission payable or commission payable or commission payable by by by by assesseeassesseeassesseeassessee to its to its to its to its

employees for services rendered, where employees for services rendered, where employees for services rendered, where employees for services rendered, where such sum such sum such sum such sum

would not have been payable to him as profits would not have been payable to him as profits would not have been payable to him as profits would not have been payable to him as profits ............

� Interest on any loan from PFI, a state financial Interest on any loan from PFI, a state financial Interest on any loan from PFI, a state financial Interest on any loan from PFI, a state financial

corporation or a state corporation or a state corporation or a state corporation or a state indsindsindsinds. investment corp., Banks.. investment corp., Banks.. investment corp., Banks.. investment corp., Banks.

� Sum payable by the Sum payable by the Sum payable by the Sum payable by the assesseeassesseeassesseeassessee as an employer in lieu as an employer in lieu as an employer in lieu as an employer in lieu

of any leave at the credit of his employee.of any leave at the credit of his employee.of any leave at the credit of his employee.of any leave at the credit of his employee.

� Interest converted into loan. Allowed u/s 43B??Interest converted into loan. Allowed u/s 43B??Interest converted into loan. Allowed u/s 43B??Interest converted into loan. Allowed u/s 43B??

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE CLAUSE CLAUSE CLAUSE –––– 27(A)27(A)27(A)27(A)� CENVAT Credit CENVAT Credit CENVAT Credit CENVAT Credit –––– reconcile with registers and reconcile with registers and reconcile with registers and reconcile with registers and

booksbooksbooksbooks

Lunawat & Co.

CENVATCENVATCENVATCENVAT AmountAmountAmountAmount Treatment in Treatment in Treatment in Treatment in

Profit & Loss Profit & Loss Profit & Loss Profit & Loss

/Accounts/Accounts/Accounts/Accounts

Opening balanceOpening balanceOpening balanceOpening balance

CENVAT AvailedCENVAT AvailedCENVAT AvailedCENVAT Availed

CENVAT utilizedCENVAT utilizedCENVAT utilizedCENVAT utilized

Closing/outstanding Closing/outstanding Closing/outstanding Closing/outstanding

BalanceBalanceBalanceBalance

RELATED PARTYRELATED PARTYRELATED PARTYRELATED PARTY

Accounting Accounting Accounting Accounting StandardsStandardsStandardsStandards

AS 18AS 18AS 18AS 18

Companies Companies Companies Companies ActActActAct

S. 2(76)S. 2(76)S. 2(76)S. 2(76)

S. 184S. 184S. 184S. 184 S. 188S. 188S. 188S. 188

Income TaxIncome TaxIncome TaxIncome Tax

40A(2)(b)40A(2)(b)40A(2)(b)40A(2)(b)

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– NEW CLAUSE NEW CLAUSE NEW CLAUSE NEW CLAUSE ---- 28282828� DDDDetails of shares received without / inadequate etails of shares received without / inadequate etails of shares received without / inadequate etails of shares received without / inadequate

consideration u/s 56(2)(consideration u/s 56(2)(consideration u/s 56(2)(consideration u/s 56(2)(viiaviiaviiaviia). ). ). ). Is it for all assesses?Is it for all assesses?Is it for all assesses?Is it for all assesses?

� Take care of transactions not regarded as transfer for this purpose Take care of transactions not regarded as transfer for this purpose Take care of transactions not regarded as transfer for this purpose Take care of transactions not regarded as transfer for this purpose –––– 47 (via), (47 (via), (47 (via), (47 (via), (vicvicvicvic), (), (), (), (vicbvicbvicbvicb), (vid) & (vii)), (vid) & (vii)), (vid) & (vii)), (vid) & (vii)

� Not Not Not Not stated in Form, stated in Form, stated in Form, stated in Form, required required required required in in in in Utility Utility Utility Utility ––––� Name of the person from whom shares are receivedName of the person from whom shares are receivedName of the person from whom shares are receivedName of the person from whom shares are received

� PAN, if availablePAN, if availablePAN, if availablePAN, if available

� Name of company whose shares are receivedName of company whose shares are receivedName of company whose shares are receivedName of company whose shares are received

� CINCINCINCIN

� No. of SharesNo. of SharesNo. of SharesNo. of Shares

� Amount of consideration paidAmount of consideration paidAmount of consideration paidAmount of consideration paid

� FMV of sharesFMV of sharesFMV of sharesFMV of shares

� If If If If without consideration, it may not be accounted in books. without consideration, it may not be accounted in books. without consideration, it may not be accounted in books. without consideration, it may not be accounted in books. Reporting to be made.Reporting to be made.Reporting to be made.Reporting to be made.

� Reporting only difference exceeds Reporting only difference exceeds Reporting only difference exceeds Reporting only difference exceeds RsRsRsRs. 50K. 50K. 50K. 50K

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– NEW CLAUSE NEW CLAUSE NEW CLAUSE NEW CLAUSE ---- 29292929� Details of consideration received in excess of fair Details of consideration received in excess of fair Details of consideration received in excess of fair Details of consideration received in excess of fair

value for issue of shares u/s 56(2)(value for issue of shares u/s 56(2)(value for issue of shares u/s 56(2)(value for issue of shares u/s 56(2)(viibviibviibviib) ) ) ) –––– only for only for only for only for

companiescompaniescompaniescompanies

� Details not given in Form, but in Utility:Details not given in Form, but in Utility:Details not given in Form, but in Utility:Details not given in Form, but in Utility:

� Name of the person from whom Name of the person from whom Name of the person from whom Name of the person from whom consideration received for consideration received for consideration received for consideration received for

issue of shares issue of shares issue of shares issue of shares

� PAN, if availablePAN, if availablePAN, if availablePAN, if available

� NoNoNoNo. of . of . of . of Shares receivedShares receivedShares receivedShares received

� Amount of consideration Amount of consideration Amount of consideration Amount of consideration receivedreceivedreceivedreceived

� FMV of FMV of FMV of FMV of sharessharessharesshares

� Would anything be reported under this?Would anything be reported under this?Would anything be reported under this?Would anything be reported under this?

� Use SA 620 Use SA 620 Use SA 620 Use SA 620 –––– Using the work of an Auditor’s ExpertUsing the work of an Auditor’s ExpertUsing the work of an Auditor’s ExpertUsing the work of an Auditor’s Expert

Lunawat & Co.

CLAUSE 31 CLAUSE 31 CLAUSE 31 CLAUSE 31 ---- S. 269SS/TS. 269SS/TS. 269SS/TS. 269SS/T� Advance against immovable property in cash for Advance against immovable property in cash for Advance against immovable property in cash for Advance against immovable property in cash for RsRsRsRs. . . .

20000/20000/20000/20000/---- covered? Reportable in Form 3CD?covered? Reportable in Form 3CD?covered? Reportable in Form 3CD?covered? Reportable in Form 3CD?� Yes, NoYes, NoYes, NoYes, No

� Loan received by NEFT / RTGS??Loan received by NEFT / RTGS??Loan received by NEFT / RTGS??Loan received by NEFT / RTGS??� NoNoNoNo

� Share application money advance??Share application money advance??Share application money advance??Share application money advance??� No if adequate documentsNo if adequate documentsNo if adequate documentsNo if adequate documents

� Sale proceeds collected by selling agent?Sale proceeds collected by selling agent?Sale proceeds collected by selling agent?Sale proceeds collected by selling agent?� NoNoNoNo

� Advance received against sale of goods?? Companies Advance received against sale of goods?? Companies Advance received against sale of goods?? Companies Advance received against sale of goods?? Companies

Act 2013??Act 2013??Act 2013??Act 2013??� NoNoNoNo

Lunawat & Co.

CLAUSE 31 CLAUSE 31 CLAUSE 31 CLAUSE 31 ---- S. 269SS/TS. 269SS/TS. 269SS/TS. 269SS/T

� ABC P. Ltd receives cash from ABC P. Ltd receives cash from ABC P. Ltd receives cash from ABC P. Ltd receives cash from Mr. A an Mr. A an Mr. A an Mr. A an agriculturist?agriculturist?agriculturist?agriculturist?� YesYesYesYes

� Security deposit received against contracts?Security deposit received against contracts?Security deposit received against contracts?Security deposit received against contracts?� Yes Yes Yes Yes –––– depositdepositdepositdeposit

� Amount retained by Amount retained by Amount retained by Amount retained by contracteecontracteecontracteecontractee against against against against

performance??performance??performance??performance??� No as amount not receivedNo as amount not receivedNo as amount not receivedNo as amount not received

� ABC P. Ltd repays loan payable on demand in cash?ABC P. Ltd repays loan payable on demand in cash?ABC P. Ltd repays loan payable on demand in cash?ABC P. Ltd repays loan payable on demand in cash?� NoNoNoNo

� Loan in name of Mr A transferred in name of Mr B Loan in name of Mr A transferred in name of Mr B Loan in name of Mr A transferred in name of Mr B Loan in name of Mr A transferred in name of Mr B

by accounting entry?by accounting entry?by accounting entry?by accounting entry?� YesYesYesYes

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– AMENDMENT AMENDMENT AMENDMENT AMENDMENT ---- 34343434� TDS TDS TDS TDS –––– Total Total Total Total revamped. revamped. revamped. revamped.

� TCS added. TCS added. TCS added. TCS added.

� Reconcile it with:Reconcile it with:Reconcile it with:Reconcile it with:

� TDS ReturnsTDS ReturnsTDS ReturnsTDS Returns

� Financial StatementsFinancial StatementsFinancial StatementsFinancial Statements

� Clause 21(b) Clause 21(b) Clause 21(b) Clause 21(b) –––– 40(a) / 40(40(a) / 40(40(a) / 40(40(a) / 40(iaiaiaia))))

� 34(a) if required to 34(a) if required to 34(a) if required to 34(a) if required to deduct or collect taxdeduct or collect taxdeduct or collect taxdeduct or collect tax as per as per as per as per

provisions of Chapter XVIIB or XVIIBB furnish:provisions of Chapter XVIIB or XVIIBB furnish:provisions of Chapter XVIIB or XVIIBB furnish:provisions of Chapter XVIIB or XVIIBB furnish:

1.1.1.1. TANTANTANTAN

2.2.2.2. SectionSectionSectionSection

3.3.3.3. Nature of payment or receiptNature of payment or receiptNature of payment or receiptNature of payment or receipt

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– AMENDMENT AMENDMENT AMENDMENT AMENDMENT ---- 343434344.4.4.4. Total Total Total Total amount of payment or receipt specified in 3amount of payment or receipt specified in 3amount of payment or receipt specified in 3amount of payment or receipt specified in 3

5.5.5.5. Total amount on which tax was required to be Total amount on which tax was required to be Total amount on which tax was required to be Total amount on which tax was required to be

deducted / collected under 4deducted / collected under 4deducted / collected under 4deducted / collected under 4

6.6.6.6. Total amount on which tax was deducted / collected at Total amount on which tax was deducted / collected at Total amount on which tax was deducted / collected at Total amount on which tax was deducted / collected at

specified rate out of specified rate out of specified rate out of specified rate out of 5555

7.7.7.7. Amount Amount Amount Amount of tax deducted or collected out of of tax deducted or collected out of of tax deducted or collected out of of tax deducted or collected out of 6666

8.8.8.8. Amount on which tax was deducted / collected at less Amount on which tax was deducted / collected at less Amount on which tax was deducted / collected at less Amount on which tax was deducted / collected at less

than specified rate out of 7than specified rate out of 7than specified rate out of 7than specified rate out of 7

9.9.9.9. Amount of tax deducted or collected on 8Amount of tax deducted or collected on 8Amount of tax deducted or collected on 8Amount of tax deducted or collected on 8

10.10.10.10. Amount of tax deducted or collected but not deposited Amount of tax deducted or collected but not deposited Amount of tax deducted or collected but not deposited Amount of tax deducted or collected but not deposited

out of 6 & 8out of 6 & 8out of 6 & 8out of 6 & 8

Lunawat & Co.

TDS EXAMPLETDS EXAMPLETDS EXAMPLETDS EXAMPLESectionSectionSectionSection

(2)(2)(2)(2)

Nature Nature Nature Nature

of of of of

PaymenPaymenPaymenPaymen

tttt

(3)(3)(3)(3)

Total Total Total Total

amtamtamtamt of of of of

paymenpaymenpaymenpaymen

t or t or t or t or

receipt receipt receipt receipt

(4) (4) (4) (4)


amtamtamtamt on on on on

which which which which

tax was tax was tax was tax was

required required required required

to be to be to be to be

deductedeductedeductededucte

d out of d out of d out of d out of

4 4 4 4

(5)(5)(5)(5)


amtamtamtamt on on on on

which which which which

tax was tax was tax was tax was

deddeddedded. / . / . / . /

coll. coll. coll. coll. at at at at

specifiespecifiespecifiespecifie

d rate d rate d rate d rate

out of 5 out of 5 out of 5 out of 5

(6)(6)(6)(6)

AmouAmouAmouAmou

nt of nt of nt of nt of

tax tax tax tax

deductdeductdeductdeduct

ed out ed out ed out ed out

of 6 of 6 of 6 of 6

(7)(7)(7)(7)

AmtAmtAmtAmt on on on on

which tax which tax which tax which tax

was was was was deddeddedded. . . .

/ / / / collcollcollcoll/ at / at / at / at

< than < than < than < than

specified specified specified specified

rate out rate out rate out rate out

of 7of 7of 7of 7

(8)(8)(8)(8)

Amount Amount Amount Amount

of tax of tax of tax of tax

deductedeductedeductededucte

d or d or d or d or

collectecollectecollectecollecte

d on 8d on 8d on 8d on 8

(9)(9)(9)(9)

AmtAmtAmtAmt of of of of

tax tax tax tax deddeddedded. . . .

or coll. or coll. or coll. or coll.

but not but not but not but not

depositdepositdepositdeposit

ed out ed out ed out ed out

of 6 & 8of 6 & 8of 6 & 8of 6 & 8

(10)(10)(10)(10)

194 C194 C194 C194 C TptTptTptTpt.... 15 Cr15 Cr15 Cr15 Cr 0000 0000 0000 0000 0000 0000

194 C194 C194 C194 C Cont.Cont.Cont.Cont. 25 L25 L25 L25 L 15 L15 L15 L15 L 10 L10 L10 L10 L 10000100001000010000 5 5 5 5 LacsLacsLacsLacs 5000500050005000 0000

194A194A194A194A InttInttInttIntt.... 5 5 5 5 CrsCrsCrsCrs 6 6 6 6 LacsLacsLacsLacs 5 5 5 5 LacsLacsLacsLacs 50K50K50K50K 1111 LacLacLacLac 5000500050005000 0000

194I194I194I194I RentRentRentRent 25 L25 L25 L25 L 20 L20 L20 L20 L 15 L15 L15 L15 L 1.5 L1.5 L1.5 L1.5 L 5 L5 L5 L5 L 10000100001000010000 10000100001000010000

194J194J194J194J FTSFTSFTSFTS 1 L1 L1 L1 L 1 L1 L1 L1 L 0000 0000 0000 0000 0000

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– AMENDMENT AMENDMENT AMENDMENT AMENDMENT ---- 34343434

� 34 34 34 34 ((((b) b) b) b) –––– If TDS If TDS If TDS If TDS / TCS / TCS / TCS / TCS Statement Statement Statement Statement not not not not furnished furnished furnished furnished

within prescribed within prescribed within prescribed within prescribed timetimetimetime, , , , furnish: furnish: furnish: furnish:

� TANTANTANTAN

� Type of FormType of FormType of FormType of Form

�Due date of furnishingDue date of furnishingDue date of furnishingDue date of furnishing

�Date of furnishing, if furnishedDate of furnishing, if furnishedDate of furnishing, if furnishedDate of furnishing, if furnished

�Whether Whether Whether Whether the the the the TDS / TCS Statement TDS / TCS Statement TDS / TCS Statement TDS / TCS Statement

contains information contains information contains information contains information about all transactions about all transactions about all transactions about all transactions

which which which which are required to are required to are required to are required to be be be be reported reported reported reported ––––

Transporters??? Transporters??? Transporters??? Transporters??? –––– yes / no??yes / no??yes / no??yes / no??

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– AMENDMENT AMENDMENT AMENDMENT AMENDMENT ---- 34343434

� 34 34 34 34 (c) (c) (c) (c) –––– Whether the Whether the Whether the Whether the assesseeassesseeassesseeassessee is liable to pay is liable to pay is liable to pay is liable to pay

u/s 201(1A) or section 206C(7), if yes, please u/s 201(1A) or section 206C(7), if yes, please u/s 201(1A) or section 206C(7), if yes, please u/s 201(1A) or section 206C(7), if yes, please

furnish :furnish :furnish :furnish :----

Lunawat & Co.

TANTANTANTAN

Amount of Amount of Amount of Amount of

Interest PayableInterest PayableInterest PayableInterest Payable

Amount paid Amount paid Amount paid Amount paid

out of Col. (2)out of Col. (2)out of Col. (2)out of Col. (2)

Date of Date of Date of Date of

PaymentPaymentPaymentPayment

(1)(1)(1)(1) (2)(2)(2)(2) (3)(3)(3)(3) (4)(4)(4)(4)

NA.NA.NA.NA.

� Check TRACESCheck TRACESCheck TRACESCheck TRACES

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE 40CLAUSE 40CLAUSE 40CLAUSE 40� Ratios:Ratios:Ratios:Ratios:

� Total Turnover of the Total Turnover of the Total Turnover of the Total Turnover of the assesseeassesseeassesseeassessee

�GP / TurnoverGP / TurnoverGP / TurnoverGP / Turnover

�NP / TurnoverNP / TurnoverNP / TurnoverNP / Turnover

� StockStockStockStock----inininin----trade / Turnovertrade / Turnovertrade / Turnovertrade / Turnover

�Material Consumed / Finished Goods producedMaterial Consumed / Finished Goods producedMaterial Consumed / Finished Goods producedMaterial Consumed / Finished Goods produced

� To be given for all To be given for all To be given for all To be given for all assesseesassesseesassesseesassessees????????????

�Only Manufacturing & TradingOnly Manufacturing & TradingOnly Manufacturing & TradingOnly Manufacturing & Trading

� Ratios in value onlyRatios in value onlyRatios in value onlyRatios in value only

� To be given for business as wholeTo be given for business as wholeTo be given for business as wholeTo be given for business as whole

� Calculation Calculation Calculation Calculation of the ratios are also to be statedof the ratios are also to be statedof the ratios are also to be statedof the ratios are also to be stated

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– CLAUSE 40CLAUSE 40CLAUSE 40CLAUSE 40� NP NP NP NP –––– before / after tax?before / after tax?before / after tax?before / after tax?

� BeforeBeforeBeforeBefore

� StockStockStockStock----inininin----trade includes what items?trade includes what items?trade includes what items?trade includes what items?

�Only finished goodsOnly finished goodsOnly finished goodsOnly finished goods

� Material consumed Material consumed Material consumed Material consumed would include would include would include would include RM RM RM RM consumed, stores, spare parts and consumed, stores, spare parts and consumed, stores, spare parts and consumed, stores, spare parts and loose toolsloose toolsloose toolsloose tools

� Relevant previous year figures are to be taken Relevant previous year figures are to be taken Relevant previous year figures are to be taken Relevant previous year figures are to be taken from last previous year audit report. from last previous year audit report. from last previous year audit report. from last previous year audit report.

� In case the preceding In case the preceding In case the preceding In case the preceding PY is PY is PY is PY is not subject to not subject to not subject to not subject to audit, nothing should be mentioned in audit, nothing should be mentioned in audit, nothing should be mentioned in audit, nothing should be mentioned in relevant relevant relevant relevant columncolumncolumncolumn

Lunawat & Co.

FORM 3CD FORM 3CD FORM 3CD FORM 3CD –––– NEW CLAUSESNEW CLAUSESNEW CLAUSESNEW CLAUSES

� 39 39 39 39 ---- DDDDetailsetailsetailsetails, if any, of disqualification , if any, of disqualification , if any, of disqualification , if any, of disqualification or or or or

disagreement disagreement disagreement disagreement on any on any on any on any matter / item / matter / item / matter / item / matter / item /

value / quantity value / quantity value / quantity value / quantity as may as may as may as may be reported / be reported / be reported / be reported /

identified identified identified identified by the by the by the by the auditor in audit under s. auditor in audit under s. auditor in audit under s. auditor in audit under s.

72A 72A 72A 72A –––– service taxservice taxservice taxservice tax

� 41 41 41 41 ---- DDDDetails etails etails etails of demand raised of demand raised of demand raised of demand raised / / / / refund refund refund refund

issued under issued under issued under issued under any tax laws other than any tax laws other than any tax laws other than any tax laws other than IT & IT & IT & IT &

WT with relevant proceedingsWT with relevant proceedingsWT with relevant proceedingsWT with relevant proceedings

Lunawat & Co.

REVIEWREVIEWREVIEWREVIEW� Statutory Statutory Statutory Statutory audit report audit report audit report audit report qualification, qualification, qualification, qualification,

notes to accounts, adverse remarks notes to accounts, adverse remarks notes to accounts, adverse remarks notes to accounts, adverse remarks and and and and

disclaimers in reportdisclaimers in reportdisclaimers in reportdisclaimers in report

�QualificationsQualificationsQualificationsQualifications inininin costcostcostcost auditauditauditaudit reportreportreportreport

�AuditAuditAuditAudit u/su/su/su/s 72727272AAAA ofofofof serviceserviceserviceservice taxtaxtaxtax

�DemandDemandDemandDemand raisedraisedraisedraised orororor refundrefundrefundrefund issuedissuedissuedissued inininin anyanyanyany

lawlawlawlaw....

�OnlineOnlineOnlineOnline compliancecompliancecompliancecompliance websiteswebsiteswebsiteswebsites forforforfor dues,dues,dues,dues,

compliances,compliances,compliances,compliances, etcetcetcetc

Lunawat & Co.

DISCLAIMERSDISCLAIMERSDISCLAIMERSDISCLAIMERS� It is not possible to verify whether the taking or It is not possible to verify whether the taking or It is not possible to verify whether the taking or It is not possible to verify whether the taking or

accepting of loan or deposit or repayment of the accepting of loan or deposit or repayment of the accepting of loan or deposit or repayment of the accepting of loan or deposit or repayment of the same have been made otherwise than by account same have been made otherwise than by account same have been made otherwise than by account same have been made otherwise than by account payee payee payee payee chequechequechequecheque or bank draft as necessary evidence is or bank draft as necessary evidence is or bank draft as necessary evidence is or bank draft as necessary evidence is not in the possession of the not in the possession of the not in the possession of the not in the possession of the assesseeassesseeassesseeassessee. . . .

� We have verified the compliance with the provisions We have verified the compliance with the provisions We have verified the compliance with the provisions We have verified the compliance with the provisions of Chapter XVIIof Chapter XVIIof Chapter XVIIof Chapter XVII----B and XVIIB and XVIIB and XVIIB and XVII----BB regarding deduction / BB regarding deduction / BB regarding deduction / BB regarding deduction / collection of tax at source and regarding the payment collection of tax at source and regarding the payment collection of tax at source and regarding the payment collection of tax at source and regarding the payment thereof to the credit of the Central Government in thereof to the credit of the Central Government in thereof to the credit of the Central Government in thereof to the credit of the Central Government in accordance with the Auditing Standards generally accordance with the Auditing Standards generally accordance with the Auditing Standards generally accordance with the Auditing Standards generally accepted in India which include test checks and the accepted in India which include test checks and the accepted in India which include test checks and the accepted in India which include test checks and the concept of materialityconcept of materialityconcept of materialityconcept of materiality

� …………....

Lunawat & Co.

AUDIT PROCEDUREAUDIT PROCEDUREAUDIT PROCEDUREAUDIT PROCEDURE� AppointmentAppointmentAppointmentAppointment

� Engagement LetterEngagement LetterEngagement LetterEngagement Letter

� Understanding of ClientUnderstanding of ClientUnderstanding of ClientUnderstanding of Client

� Understanding the EngagementUnderstanding the EngagementUnderstanding the EngagementUnderstanding the Engagement

� AuthorizationsAuthorizationsAuthorizationsAuthorizations

� ConfirmationsConfirmationsConfirmationsConfirmations

�Management RepresentationsManagement RepresentationsManagement RepresentationsManagement Representations

� CertificatesCertificatesCertificatesCertificates

� ReportsReportsReportsReports

� Billing /CollectionBilling /CollectionBilling /CollectionBilling /Collection

Lunawat & Co.

Lunawat & Co.

Lunawat & Co.

CA. Pramod JainCA. Pramod JainCA. Pramod JainCA. Pramod [email protected]@[email protected]@lunawat.com

+91 9811073867+91 9811073867+91 9811073867+91 9811073867

© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co© 2017 CA. Pramod Jain, Lunawat & Co