ICAI has released ‘Implementation Guide’ for ‘Revised Tax audit Report (Form 3CD)’ applicable from 20 Aug. 2018. This guide will supplement the ICAI’s ‘Guidance Note on Tax Audit (2014)’ and provide clause-wise analysis of amendments in reporting requirements of Form 3CD notified by CBDT, for guidance of Members/ Taxpayers. However, subsequently the CBDT has deferred implementation of Clauses 30C (GAAR) and 44 (GST) of the revised Form 3CD upto 31 March 2019, based on representations received from stakeholders, like ICAI, etc.
It may be noted that ICAI has last revised the ‘Guidance Note on Tax Audit u/s 44AB‘ in the year 2014. Therefore, the ICAI has released this ‘Implementation Guide’ to support the Members to carry out ‘Tax Audits’ from 20 Aug. 2018 using the revised Form 3CD.
This guide deals with the amendments made by CBDT vide Notification No. 33/2018 dt. 20 July, 2018 only, which are applicable from 20 August 2018. Therefore, it is advisable that the existing ‘Guidance Note of ICAI on Tax Audit under section 44AB’ of the Income-tax Act, 1961 (last revised in 2014) is referred to in respect of the clause where there is no new change/ insertion is notified by CBDT. However, for amendments in Form 3CD applicable from 20 Aug. 2018, this Implementation Guide of ICAI needs to be referred to.
Gist of Amendments in Form No. 3CD covered by ICAI’s Implementation Guide
|Sl. No.||Revised/ New Clause in Form 3CD||Page No.|
|1||Clause 4 – Liability to GST and Furnishing of GST Number||3|
|2||Clause 19 – Amounts Admissible under Section 32AD||4|
|3||Clause 24 – Amounts deemed to be Profits and Gains under section 32AD||8|
|4||Clause 26 – Sums referred to in section 43B||9|
|5||Clause 29A – Amount Chargeable under section 56(2)(ix)||11|
|6||Clause 29B – Income chargeable under section 56(2)(x)||14|
|7||Clause 30A – Secondary Transfer Pricing Adjustments||20|
|8||Clause 30B – Limitation on Interest Deduction||26|
|9||Clauses 31(ba), (bb), (bc) and (bd)||30|
|10||Clauses 31(c), (d) and (e)||39|
|12||Clause 36A – Dividend Chargeable under section 2(22)(e)||43|
|13||Clause 42 – Furnishing of Form 61, 61A and 61B||49|