Revised Forms 3CA, 3CB, 3CD: Tax Audit Report FY 2017-18/ AY 2018-19

Revised Formats of Tax Audit Report: Forms 3CA, 3CB and 3CD (FY 2017-18/ AY 2018-19)

CBDT has notified revised Tax Audit Report Forms (3CA, 3CB, 3CD) from time to time. On 20 July 2018, Form 3CD has been further revised (applicable w.e.f. 20 Aug. 2018) expanding scope of reporting relating to GST, GAAR, SFT, Cash Transactions, Transfer Pricing, etc., for FY 2017-18/ AY 2018-19. However, subsequently CBDT has deferred implementation of Clauses 30C (GAAR) and 44 (GST) of revised Form 3CD, upto 31 March 2020.

Revised Tax Audit Report Forms (3CA, 3CB, 3CD) Applicable w.e.f. 20 Aug. 2018/ 1 April 2020

* Form 3CD revised on 20 July 2018 applicable w.e.f. 20 Aug. 2018. However, on 17 Aug. 2018/ 14 May 2019, CBDT defers implementation of newly inserted Clause 30C (GAAR) and 44 (GST) upto 31 March 2019/ 31 March 2020: CBDT further defers Clause 30C (GAAR)/ Clause 44 (GST) of Revised 3CD upto 31 March 2020

ICAI Suggestions to CBDT on ‘Revised Form 3CD’ with request to implement next year

ICAI has submitted a Representation Letter to the CBDT making certain suggestions on recently revised format of Tax Audit Report in Form No. 3CD (applicable from 20 August 2018), notified on 20 July, 2018, including to defer implementation of such changes by one year, i.e. from AY 2019-20. The contents of the ICAI’s Representation Letter, however, are not yet shared on ‘ICAI Website’.

Reportedly, the ICAI has requested/ represented the CBDT that many clauses/ sub-clauses have been modified/ inserted to effect substantial changes in the format of tax audit report along with introduction of additional disclosure requirements, applicable w.e.f. 20 aug. 2018, which may not be practicable for smooth implementation/ compliance in the middle of the peak filing time of AY 2018-19. Also, the ICAI has to review all such amendments and issue revised Guidance Note on Tax audit for adherence by its Members.

Besides, ICAI has submitted various suggestions/ concerns on the changes notified by the CBDT in Form 3CD, in respect of additional disclosure requirements and has requested for participation in the deliberation process.

Accordingly, we can look forward to deferment of effective date of some/ all of the recently notified changes in Form 3CD, by one year, i.e. revised 3CD to be applicable from AY 2019-20 instead of ongoing AY 2018-19.

CBDT Notifies Amendments in Form 3CD (Tax Audit Report), applicable from 20 Aug. 2018: Income-tax (8th Amendment) Rules, 2018

The CBDT has notified the Income-tax (8th Amendment) Rules, 2018 making substantial changes in the Format of Tax Audit Report (Form 3CD), whereby new/ revised reporting requirements relating to GST, SFT, Cash Transactions, Transfer Pricing, etc. have been prescribed, applicable w.e.f. 20 Aug. 2018. However, it may be noted that subsequently the CBDT has partly deferred implementation of revised Form 3CD upto 31 March 2019: CBDT defers Clause 30C and 44 of Revised Form 3CD upto 31 March 2019.

Summarised details of amendments made in Form 3CD, notified on 20 July 2018:

Sl. 3CD Point No. Remarks
1 4 (amended) GSTIN to be mentioned.
2 19 (amended) Allowances under Section 32AD to be reported (Addl  Depreciation, Inv. Allowance, etc.)
3 24 (amended) Deemed gains u/s 32AD to be reported.
4 26 (amended) Reporting of any sum payable to Railways u/s 43B(g) which is not allowable as deduction for non-payment.
5 29A (new) Reporting of amount chargeable u/s 56(2)(ix) as ‘income from other sources’
6 29B (new) Reporting of amount chargeable u/s 56(2)(x) as ‘income from other sources’
7 30A (new) Reporting details of Primary Adjustments to Transfer Price u/s 92CE(1)
8 30B (new) Reporting details of interest expenditure incurred exceeding one crore rupees as referred u/s  94B(1)
9 30C (new) Reporting details of impermissible avoidance arrangements, as referred to in section 96
10 31(ba), 31(bb), 31(bc), 31(bd) (new) Reporting details of each cash receipt or payment in excess of the limit specified u/s 269ST
11 31(c), 31(d), 31(e) (amended) Clauses amended.
12 34(b) (amended) Reporting details of transactions not disclosed in TDS/ TCS Returns
13 36A (new) Reporting details of any dividend receipts u/s 2(22)(e)
14 42 (new) Reporting details of transactions not disclosed/ specified in Form No. 61/ 61A/ 61B
15 43 (new) Reporting whether assessee or its parent entity or alternate reporting entity is liable to furnish the report (CbCR) u/s 286(2)
16 44 (new) Reporting Break-up of total expenditure into expenditure with registered or not registered entities under the GST

Income Tax (8th Amendment) Rules, 2018 (Changes in Form 3CD): CBDT Notification No. 33/2018 dt. 20 July 2018

Related Posts:

ITR/ Tax Audit (TAR) Due Date further Extended upto 31 Oct. 2018 (AY 2018-19): CBDT

ICAI’s ‘Implementation Guide’ for ‘Revised Form 3CD’ Applicable from 20 Aug. 2018

CBDT’s Revised ICDS (applicable from AY 2017-18) along with Clarifications/ FAQs

Specified Number of Tax Audits (Ceiling Limit): Amendments/ Clarifications by ICAI

ICAI’s Revised Guidance Note on Tax Audit (2014 Edition) Applicable for AY 2018-19 also

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