LUNAWAT & CO.

Chartered Accountants CA. PRAMOD JAIN

20th August 2016, Bhopal FCA, FCS, FCMA, LL.B, MIMA, DISA
 Lunawat & Co.
WHAT IS TAX AUDIT??

S. 10 (23C) (iv), (v), (vi) or (via),

Section 10A,

Section 12A(1)(b),

Section 44AB

Section 80-
80-IA,

Section 80-
80-IB,

Section 80-
80-IC,

Section 80-
80-ID,

Section 80JJAA,

Section 80LA,

Section 92E

Section 115JB
 Lunawat & Co.
LEGISLATION ON TAR AY 2016-
2016-17
•Business
Business – exceeds 1 Crore
•Profession
Profession – exceeds 25 Lacs
S. 44AB •Business
Business u/s 44AD; deemed profit < 8% and TI >ANCT
•Business
Business u/s 44AE / 44BB / 44BBB; income is <
deemed profits

•Prescribing
Prescribing the Forms for Report u/s
Rule 6G 44AB

Form 3CA • Report in case of a person who is required to

get his A/cs
A/cs audited under any law

Form 3CB •Report

Report in any other case

•Particulars
Particulars as required u/F 3CA or
Form 3CD 3CB
 Lunawat & Co.

TAR CEILING

60
45
30
 ICAI clarified in 2011 that audit
prescribed under any statute (like DVAT,
2004), not covered
 44AD / 44AE audit not covered in limit
 Lunawat & Co.
APPLICABILITY OF 44AD /44AB FOR AY 2016-
2016-17
Mfg. - Turnover – 120L; NP -5L; 80-
80-IA – 3 L; TI-
TI-
2.40L • AD - No
• AB - Yes

Trading-
Trading- Turnover – 110L; NP -3L; Architect –
Fee – 30 L; NP-
NP- 5 L; TI-
TI-7L • AD - No
• AB - Yes

Doctor – Trading Turnover – 80L - NP – 3L; Fee

– 27 L – NP 5 L; TI-
TI- 8 L • AD - No
• AB - Yes

Trading – Turnover – 150 L; NP 1.5 L – Does

not file ITR • AD - No
• AB - Yes
 Lunawat & Co.
APPLICABILITY OF 44AD /44AB FOR AY 2016-
2016-17

Trading; Turnover – 50L; NP – 3L; TI-

TI- (-)1.5L. • AD - No
Files ITR • AB - No

Manufacturing; Turnover – 80L; NP - 9L;

80IC - 4L; TI-
TI-4L • AD - No
• AB - No

Mfg – TO – 40 L, NP – 1 L; Trading-
Trading-TO – 40
L, NP-
NP-1 L; Exports – TO – 50 L, NP – 1 L • AD - No
• AB - Yes

Trading; Turnover -60L; Commission - 2L; NP-

NP-
3L; TI 4L • AD – No
• AB - No
 Lunawat & Co.
APPLICABILITY OF 44AD / 44AB FOR AY 2016-
2016-17

Manufact
uring –
80L ; NP
– 8L

Commissi
on – 2 L;
NP-
NP- 1L

Trading – Professio
25 L ; NP-
NP- n – 21 L ;
3L NP – 5 L
 Lunawat & Co.
SECTION 44AB CHANGES–
CHANGES– AY 2017-
2017-18
• 44AB limit for profession increased to 50Lacs
• Audit of professionals below fifty lacs if receipt
below 50 Lacs and s. 44ADA benefit not taken
• If benefit u/s 44AD not claimed in 1 year then
cannot claim in next 5 years. In such case to
maintain books if income exceeds maximum
amount not chargeable to tax
• Provision for assesses covered u/s 44AD(4)
 Lunawat & Co.
APPLICABILITY-
APPLICABILITY-44AD /44AB FOR AY 2017-
2017-18

AY 2017-
2017-18 – T – Rs.
Rs. 120 Lacs . P
– 10 L, TI – 9 L •Y/N

AY 2018-
2018-19 – T – Rs.
Rs. 120 Lacs . P
– 8 L, TI – 6 L •N/Y

AY 2019-
2019-20 – T – Rs.
Rs. 70 Lacs . P –
10 L, TI – 9 L •N/Y

AY 2020-
2020-21 – T – Rs.
Rs. 60 Lacs . P –
10 L, TI – 2 L
•N/N
Lunawat & Co.
 Lunawat & Co.
WHO CAN CONDUCT AUDIT

W.e.f.
W.e.f. 1st June 2015

Accountant as defined in Explanation
below S. 288 (2)

A Chartered Accountant as defined in
section 2 (1) (b) of the Chartered
Accountants Act, 1949 who holds a valid
certificate of practice u/s 6 (1) of that Act

CA in practice (can represent)
 Lunawat & Co.
QUALIFICATION - CA

T.D.
Venkata Rao v. Union of India [1999]
237 ITR 315 (SC):
(SC):

Chartered Accountants, by reason of their training
have special aptitude in the matter of audits. It is
reasonable that they, who form a class by
themselves, should be required to audit the accounts
of businesses…. There is no material on record and
indeed in our view, there cannot be that an income-
income-
tax practitioner has the same expertise as chartered
accountants in the matter of accounts. …and it must
be pointed out that these income-
income-tax practitioners
are still entitled to be authorised representatives of
assessees.”
assessees
 Lunawat & Co.
DISQUALIFICATION - COMPANIES
 Lunawat & Co.
DISQUALIFICATION – OTHERS

Assessee himself

In case of a firm - any partner of the firm

In case of AOP - member of the association

In case of HUF - member of the family

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

(cc);

Relative of any of above persons

Other than above, person who is competent

to verify return u/s 139/140;

Officer or employee of assessee;
assessee;
 Lunawat & Co.
RELATIVE – INCOME TAX AUDITOR

Spouse of the individual;

Brother or sister of the individual;

Brother or sister of the spouse of the individual;

Any lineal ascendant or descendant of the

individual;

Any lineal ascendant or descendant of the
spouse of the individual;

Spouse of a person referred above

Any lineal descendant of a brother or sister of

either the individual or of spouse of individual
 Lunawat & Co.
DISQUALIFICATIONS - OTHERS

Who is a partner, or who is in employment, of an
officer or employee of assessee;
assessee;

Who has been convicted by a court of an offence
involving fraud and a period of 10 years has not
elapsed from the date of such conviction

An individual who, or his relative or partner

Is holding any security of or interest in assessee–
assessee–
Relative face value - Rs.
Rs. 1 L

Is indebted to the assessee.
assessee. Relative – Rs.
Rs. l L

Has given a guarantee /provided security . Relative –
1L
 Lunawat & Co.
DISQUALIFICATIONS – TAX AUDITOR

A person or a firm who, whether directly or
indirectly, has business relationship with
assessee.
assessee. i.e., any transaction entered into for
commercial purpose except:

In nature of professional services permitted

In the ordinary course of business of co.
co. at ALP like

sale of products or

services

To auditor,
auditor, as customer, in the ordinary course of
business,
business, by companies engaged in business of
telecommunications, airlines, hospitals, hotels &
such other similar businesses
 Lunawat & Co.
???

Can a CA in practice who is giving
accounting services to a company conduct
tax audit of that company?

Can an internal auditor of a company issue
Form 15CB certificate for that company?

Can a CA in practice who is giving
accounting services to a company issue
certificate in Form 29B for MAT
calculation?
 Lunawat & Co.

Audit Reports

Companies
Other Acts
Act

Non-
Non- Tax
CARO LLP Society
CARO Audit

Form Form
3CA 3CB
 Lunawat & Co.
FORM 3CA
 Reporting period for PL amended from 31st March to
period wise.
 Examination of books by auditor included before
giving opinion
 Opinion now to be given subject to observations /
qualifications, no annexures
 Stamp / Seal of auditor required
 Name of signatory to be given. FRN??
 To be signed by person eligible as per s. 44AB
(earlier CA, auditor as per Companies Act, other
person entitled to audit
 Lunawat & Co.
FORM 3CB
 Same as Form 3CA except examination
of books
 Opinion subject to observations /
qualifications to be given:

Financial Statements – 3(a)

Form 3CD – 5

 SA 700?
 Lunawat & Co.
SA 700
 Assessee’s Responsibility for the Financial Statements
and the Statement of Particulars in Form 3CD
1. The assessee is responsible for the preparation of the
aforesaid financial statements that give a true and fair
view of the financial position and financial performance
(if applicable) in accordance with the applicable
Accounting Standards issued by the Institute of
Chartered Accountants of India. This responsibility
includes the design,
design, implementation and maintenance
of internal control relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
 Lunawat & Co.
SA 700
2. The assessee is also responsible for the
preparation of the statement of particulars
required to be furnished under section 44AB of
the Income-
Income-tax Act, 1961 annexed herewith in
Form No. 3CD read with Rule 6G(1)(b) of
Income Tax Rules, 1962 that give true and
correct particulars as per the provisions of the
Income-
Income-tax Act, 1961 read with Rules,
Rules,
Notifications , circulars etc that are to be
included in the Statement.
Statement.
 Lunawat & Co.
SA 700
 Tax Auditor’s Responsibility
3. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have conducted this audit in accordance
with the Standards on Auditing issued by the
Institute of Chartered Accountants of India.
Those Standards require that we comply with
ethical requirements and plan and perform the
audit to obtain reasonable assurance about
whether the financial statements are free from
material misstatement.
misstatement.
 Lunawat & Co.
SA 700
4. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material
misstatement of the financial statements,
statements, whether due to
fraud or error. In making those risk assessments,
assessments, the auditor
considers internal control relevant to the preparation and fair
presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances but
not for the purposes of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall
presentation of the financial statements.
 Lunawat & Co.
SA 700
5. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our audit opinion.
6. We are also responsible for verifying the statement
of particulars required to be furnished under section
44AB of the Income-
Income-tax Act, 1961 annexed herewith
in Form No. 3CD read with Rule 6G (1) (b) of Income-
Income-
tax Rules, 1962. We have conducted my/our
verification of the statement in accordance with
Guidance Note on Tax Audit under section 44AB of
the Income-
Income-tax Act, 1961, issued by the Institute of
Chartered Accountants of India.
India.
 Lunawat & Co.
QUALIFICATIONS IN REPORT -1
 Proper books of account, to enable reporting in
form 3CD, have not been maintained by the
assessee.
assessee.
 All the information and explanations which to the
best of my/our knowledge and belief were
necessary for the purpose of my/our audit has
been provided by the assessee.
assessee.
 Documents necessary to verify the reportable
transaction were not made available.
available.
 Proper stock records are not maintained by the
assessee.
 Lunawat & Co.
QUALIFICATIONS IN REPORT - 2
 Valuation of closing stock is not possible.
possible.
 Yield/percentage of wastage is not ascertainable.
ascertainable.
 Records necessary to verify personal nature of
expenses not maintained by the assessee
 TDS returns could not be verified by with the books
of account.
account.
 Records produced for verification of payments
through account payee cheque were not sufficient
 Amount of expense related to exempted income
u/s 14A of Income tax Act, 1961 could not be
ascertained
 Lunawat & Co.
QUALIFICATIONS IN REPORT - 3
 Creditors under Micro, Small and Medium
Enterprises Development Act, 2006 are not
ascertainable
 Prior period expenses are not ascertainable from
books of account
 Fair market value of shares u/s 56(2) (viia
(viia)
viia) / (viib
(viib)
viib)
is not ascertainable.
ascertainable.
 Reports of audits carried by Excise/Service tax
Department were not made available
 GP ratio is not ascertainable from the financial
statements prepared by the assessee.
 Lunawat & Co.
QUALIFICATIONS IN REPORT - 4
 Information regarding demand raised or refund
issued during the previous year under any tax laws
other than Income-
Income-tax act, 1961 and Wealth tax
Act, 1957 were not made available
 Others
 Mandatory that observations in 3CD on which
opinion cannot be given be reported in Form 3CA /
Form 3CB
 Lunawat & Co.
FORM 3CD – OVERVIEW

Part A 1 -8 2 New

3CD
5 New

Part B 9-41
Amendme
nts
 Lunawat & Co.
FORM 3CD – OVERVIEW
 Purpose was to facilitate determination of
income from business or profession
 Now Capital Gain – 50C and other sources
also covered – 56 (shares)
 Read and understand all clauses and
relevant sections
 Obtain Form 3CD duly authenticated by
assessee
 New 143(1) – Tax Audit Report adjustment
 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 4
 Indirect Tax Registration Nos to be given
if liable to pay i.e.,

Central Excise Duty,

Central Customs Duty,

Service Tax,

Sales Tax /VAT – State Wise,

State Excise Duty – State Wise

Others Indirect tax.

 Is it indirect tax audit?

 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 8
 Relevant clause u/s 44AB under which audit
is done to be given
a) Business – exceeds Rs.
Rs. 1 Cr.
b) Profession – exceeds Rs.
Rs. 25 Lacs
c) Lower deemed profits u/s
1) 44AE,
2) 44BB,
3) 44BBB
d) Lower deemed profits u/s 44AD and income
exceeds maximum amount not chargeable to
tax
 Lunawat & Co.
FORM 3CD –CLAUSE - 11
 Whether books prescribed u/s 44AA? If yes, list of
books prescribed.
 List of books maintained &address at which maintained
 List of books of a/cs
a/cs & nature of relevant documents
examined.
 S. 2(12A) - books or books of a/c includes ledgers, day-
day-
books, cash books, account-
account-books & other books,
whether kept in written form or ..electronic.
 Relevant documents - directly related to transactions
reflected in books of a/cs
a/cs like invoice,
invoice, bank statements,
statements,
vouchers, dr. note,
note, cr. note,
note, inventory register,
register,
agreements /contracts or any other document on basis
of which preliminary entries are passed in books of a/cs
a/cs
 Lunawat & Co.
FORM 3CD –CLAUSE - 13
 Method of accounting employed in previous year
 Change in method of accounting applied

 If, yes, effect thereof on profit / loss

 Deviation in method of accounting from

accounting standards prescribed u/s 145 and
effect thereof on P/L
 Change in method of valuation of inventories to
be reported?
 Change in accounting policy to be reported?

 ICDS?
 Lunawat & Co.
FORM 3CD –CLAUSE - 14
 Method of valuation of closing stock
S. N Particulars + in profit - in profit
1 Increase in cost of opening stock on inclusion of excise duty 20
on which CENVAT credit is available/availed
2 Increase in purchase cost of RM on inclusion of excise duty 180
on which CEN VAT credit is available/availed
3 Increase in sales of FG on inclusion of excise duty 180

4 Excise duty paid - sale of FG as result of its inclusion in sales - 180

5 Increase in closing stock of RM on inclusion of excise duty 40 -
6 Increase in closing stock of FG on inclusion of excise duty 60 -
7 Increase in excise duty on closing stock of FG as a result of - 60
its inclusion in closing stock of FG
8 Accounting of CENVT credit availed and utilised on RM 160 -
consumed in payment of excise duty on FG accounted on
basis of RM consumed
Total 440 440
 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 15
 Conversion of capital asset into stock in
trade
 Accounting of inventories in books?

AtCarrying cost

FMV

 Ifother than carrying cost then

qualification regarding non-
non- compliance
of AS-
AS-2
 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 17
 Land or building or both transferred at
less that the circle rate u/s 43CA or 50C.
 Detail to be given:

Detailof property with complete address

Consideration received or accrued

Value adopted or assessed / assessable

 Builders !!!
 Lunawat & Co.
FORM 3CD – CLAUSE - 18
 Depreciation allowable – Additional Dep.
 Actual Cost or WDV

Car 1st Insurance

Interest upto asset put to use

S. 35 capital assets not to be included

 Additions/deductions during year with dates ; in

case of any addition of an asset, date put to use;
including adjustments on a/c of

CENVAT / VAT credits claimed & allowed - reconcile

Change in rate of exchange of currency – AS 11/43A

Subsidy / grant / reimbursement, etc

 Lunawat & Co.
FORM 3CD – CLAUSE - 19
 Amounts admissible. Details:

Amounts debited to PL

Amounts admissible under IT provisions and
also fulfils conditions

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

S. 35AD(specified business) added

S. 35CCC (agricultural extension project)

added

S. 35CCD (skill development project) added
 Lunawat & Co.
FORM 3CD – CLAUSE - 19
 S. 35 (scientific research) bifurcated into –

35(1)(i
35(1)(i) – revenue expenditure

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

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

35(1)(iii) – 125% of amount paid for research in
social science or statistical research…..

35(1)(iv) – Capital expenditure

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

Laboratory….

35(2AB) – Company in bio technology or Mfg..200%
 Lunawat & Co.
FORM 3CD – CLAUSE – 21(A)
 Furnishthe details of amounts debited
to the profit and loss account, being in
the nature of Capital, personal,
advertisement expenditure club fee,
etc:
etc:

Loss on sale of Assets

Fee for increase in authorised Capital

Loss on sale of investments

 Lunawat & Co.
FORM 3CD – CLAUSE – 21(B)
 S. 40(a) bifurcated into (i (i), (ia
(ia),
ia), (ic
(ic),
ic), (iia
(iia),
iia), (iib
(iib),
iib),
(iii), (iv), (v). 40(a)(i
40(a)(i) - details:
 Payment on which tax not deducted
 Payment on which tax has been deducted but has not been
paid during P.Y. or in subsequent year before the expiry of
time prescribed u/s 200(1)
 Apart from date, amount and nature of payment,
payment, name &
address of payee, PAN if available also to be given
 Amount of tax deducted (when deducted) also to be given

 Full amount disallowable–

disallowable– 139(1)
139(1) ??–
??– 15CA /15CB reliance
 Amounts inadmissible u/s 40(ia
40(ia)
ia) – 30%
30% - all
payments covered now
 Lunawat & Co.
FORM 3CD – CLAUSE – 21(B)
 S. 40(a)(ic
40(a)(ic)
ic) - FBT
 S. 40(a)(iia
40(a)(iia)
iia) - WT
 S. 40(a)(iib
40(a)(iib)
iib) – Royalty etc. to SG
 S. 40(a)(iii) – Salaries paid outside India or to
Non-
Non- residents if tax not paid on it or not
deducted u/C XVIIB – details to be given
 S. 40(a)(iv) – Payment to PF or other fund
unless assessee has made effective
arrangement for TDS if chargeable under head
salaries
 Lunawat & Co.
FORM 3CD – CLAUSE – 21(B)
 S. 40(a)(v) – Tax paid by employer u/s
10(10CC)
 Disallowance u/s 40A(3)

No certificate required now.

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

Detail to be given:
 Date of payment
 Nature of payment

 Amount

 Name of Payee

 PAN (if available)

 40A(3A) also covered – same details

 Lunawat & Co.
FORM 3CD – CLAUSE – 25
 Profit chargeable u/s 41 – details required:

Name of person; Amount of income; relevant sub- sub-section

Description of transaction; Computation, if any

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

S. 41(1)(b) - Cessation of trading liab.

liab. by successor assessee

S. 41(2) – Balancing Charge

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

claimed

S. 41(4) – Recovery of bad debts

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

36(1)(viii)

S. 41 (5) – After closure of business if income u/ss
u/ss 1,3,4,
4A, then can be set off against loss
 Lunawat & Co.
FORM 3CD – CLAUSE – 26
 S. 43B. Amounts covered:

CST, VAT, Excise, ServiceTax,
ServiceTax, Customs, Propertytax etc

Sum payable as an employer by way of contribution
to any PF or superannuation fund or gratuity fund etc

Bonus or commission payable by assessee to its
employees for services rendered, where such sum
would not have been payable to him as profits ...

Interest on any loan from PFI, a state financial
corporation or a state inds.
inds. investment corp., Banks.

Sum payable by the assessee as an employer in lieu
of any leave at the credit of his employee.

Interest converted into loan. Allowed u/s 43B??
 Lunawat & Co.
FORM 3CD – CLAUSE – 27(A)
 CENVAT Credit – reconcile with registers and
books
CENVAT Amount Treatment in
Profit & Loss
/Accounts
Opening balance

CENVAT Availed

CENVAT utilized

Closing/outstanding
Balance
 Lunawat & Co.

RELATED PARTY

Accounting Companies
Income Tax
Standards Act

AS 18 S. 2(76) 40A(2)(b)

S. 184 S. 188
 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 28
 Details of shares received without / inadequate
consideration u/s 56(2)(viia
56(2)(viia).
viia). Is it for all assesses?

Take care of transactions not regarded as transfer for this purpose
– 47 (via), (vic
(vic),
vic), (vicb
(vicb),
vicb), (vid) & (vii)
 Not stated in Form, required in Utility –

Name of the person from whom shares are received

PAN, if available

Name of company whose shares are received

CIN

No. of Shares

Amount of consideration paid

FMV of shares
 If without consideration, it may not be accounted in books.
Reporting to be made.
 Reporting only difference exceeds Rs.
Rs. 50K
 Lunawat & Co.
FORM 3CD – NEW CLAUSE - 29
 Details of consideration received in excess of fair
value for issue of shares u/s 56(2)(viib
56(2)(viib)
viib) – only for
companies
 Details not given in Form, but in Utility:

Name of the person from whom consideration received
for issue of shares

PAN, if available

No.
No. of Shares received

Amount of consideration received

FMV of shares
 Would anything be reported under this?
 Use SA 620 – Using the work of an Auditor’s Expert
 Lunawat & Co.
CLAUSE 31 - S. 269SS/T
 Advance against immovable property in cash for Rs.
Rs.
20000/-
20000/- covered? Reportable in Form 3CD?

Yes, No
 Loan received by NEFT / RTGS??

No
 Share application money advance??

No if adequate documents
 Sale proceeds collected by selling agent?

No
 Advance received against sale of goods?? Companies
Act 2013??

No
 Lunawat & Co.
CLAUSE 31 - S. 269SS/T
 ABC P. Ltd receives cash from Mr. A an agriculturist?

Yes
 Security deposit received against contracts?

Yes – deposit
 Amount retained by contractee against
performance??

No as amount not received
 ABC P. Ltd repays loan payable on demand in cash?

No
 Loan in name of Mr A transferred in name of Mr B
by accounting entry?

Yes
 Lunawat & Co.
FORM 3CD – AMENDMENT - 34
 TDS – Total revamped.
 TCS added.
 Reconcile it with:

TDS Returns

Financial Statements

Clause 21(b) – 40(a) / 40(ia
40(ia)
ia)
 34(a) if required to deduct or collect tax as per
provisions of Chapter XVIIB or XVIIBB furnish:
1. TAN
2. Section
3. Nature of payment or receipt
 Lunawat & Co.
FORM 3CD – AMENDMENT - 34
 34 (b) – If TDS / TCS Statement not furnished
within prescribed time,
time, furnish:

TAN

Type of Form

Due date of furnishing

Date of furnishing, if furnished

Whether the TDS / TCS Statement

contains information about all transactions
which are required to be reported –
Transporters??? – yes / no??
 Lunawat & Co.
FORM 3CD – AMENDMENT - 34
4. Total amount of payment or receipt specified in 3
5. Total amount on which tax was required to be
deducted / collected under 4
6. Total amount on which tax was deducted / collected at
specified rate out of 5
7. Amount of tax deducted or collected out of 6
8. Amount on which tax was deducted / collected at less
than specified rate out of 7
9. Amount of tax deducted or collected on 8
10. Amount of tax deducted or collected but not deposited
out of 6 & 8
 Lunawat & Co.
TDS EXAMPLE
Section Nature Total Total Total Amou Amt on Amount Amt of
(2) of amt of amt on amt on nt of which tax of tax tax ded.
ded.
Paymen paymen which which tax ded. deducte or coll.
was ded.
t t or tax was tax was deduct / coll/
coll/ at d or but not
(3) ded. / ed out
receipt required ded. < than collecte deposit
(4) to be coll. at of 6 specified d on 8 ed out
deducte specifie (7) rate out (9) of 6 & 8
d out of d rate of 7 (10)
4 out of 5 (8)
(5) (6)

194 C Tpt.
Tpt. 15 Cr 0 0 0 0 0 0

194 C Cont. 25 L 15 L 10 L 10000 5 Lacs 5000 0

194A Intt.
Intt. 5 Crs 6 Lacs 5 Lacs 50K 1 Lac 5000 0

194I Rent 25 L 20 L 15 L 1.5 L 5L 10000 10000

194J FTS 1L 1L 0 0 0 0 0
 Lunawat & Co.
FORM 3CD – AMENDMENT - 34
 34 (c) – Whether the assessee is liable to pay
u/s 201(1A) or section 206C(7), if yes, please
furnish :-:-
Amount of Amount paid Date of
TAN Interest Payable out of Col. (2) Payment
(1) (2) (3) (4)
NA.

 Check TRACES
 Lunawat & Co.

FORM 3CD – NEW CLAUSES

 39 - Details,
etails, if any, of disqualification or
disagreement on any matter / item /
value / quantity as may be reported /
identified by the auditor in audit under s.
72A – service tax
 41 - Details of demand raised / refund
issued under any tax laws other than IT &
WT with relevant proceedings
 Lunawat & Co.
REVIEWING
 Statutory audit report qualification,
notes to accounts, adverse remarks and
disclaimers in report
 Qualifications in cost audit report

 Audit u/s 72A

72A of service tax
 Demand raised or refund issued in any
law.
law.
 Online compliance websites for dues,
compliances, etc
 Lunawat & Co.
DISCLAIMERS
 It is not possible to verify whether the taking or
accepting of loan or deposit or repayment of the
same have been made otherwise than by account
payee cheque or bank draft as necessary evidence is
not in the possession of the assessee.
assessee.
 We have verified the compliance with the provisions
of Chapter XVII-
XVII-B and XVII-
XVII-BB regarding deduction /
collection of tax at source and regarding the payment
thereof to the credit of the Central Government in
accordance with the Auditing Standards generally
accepted in India which include test checks and the
concept of materiality
 ….
 Lunawat & Co.
AUDIT PROCEDURE
 Appointment
 Engagement Letter
 Understanding of Client
 Understanding the Engagement
 Authorizations
 Confirmations
 Management Representations
 Certificates
 Reports
Lunawat & Co.
Lunawat & Co.
 CA. Pramod Jain
[email protected]
+91 9811073867

© 2016 CA. Pramod Jain, Lunawat & Co

 CA. Pramod Jain
[email protected]
+91 9811073867

© 2016 CA. Pramod Jain, Lunawat & Co