E-Filing Issues In Tax Audit – Problems And Solutions
( FREQUENTLY ASKED QUESTIONS ON E-FILLING OF TAX AUDIT REPORTS – TECHNICAL
ISSUES )
ISSUES )
BY CA NITESH MORE
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TECHNICAL ISSUES
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OTHER ISSUES
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1. Steps for
Filling Online Tax Audit Report
2. Software
Requirements
3. Problem in
Slowdown of System
4. Problem of
Mismatch in Name & DOB as Per ICAI and PAN Data
5. Attachments
6. Problem of
Negative Figures
7. Problem of
Providing Quantitative Details
8. Problem in
Entry of Large No. Of Fixed Assets
9. Problem in
Viewing Stock Figures
10. Problem of Depreciation in Webtel
Software
11. Problem of No Space for Commodity
12. Problem in Calculation of NP Ratio
13. Problem of Blank Fields in Saved
Draft Xml File
14. Problem of Viewing Data of Xml
before Uploading
15. Problem of Printing/Saving Uploaded
Xml File
16. Problem of Fakepath
17. Problem in Viewing Xml File from
Client’s Login
18. How to Print Uploaded Xml Files
19. Problem in Getting Activation
Link/SMS for Completing Registration
20. Unable to See Xml in Assessee’s
Login
21. Non Acceptance of Negative Figures
in Form 29B
22. Use of Special Characters
23. Problem of Non Generation of XML
24. Problem of Swapping Of Due Date and
Actual Date |
1. No. of Tax
Audit a CA can Sign? Issue of section 44AD
2. Online
Filling, Date of Signing and Date of Filling
3. Can a
Partner Sign On Behalf Of Other Partners?
4. Problem of
Two Tax Auditors of Same Assessee
5. Can Return
Be Filed After Due Date
6. Revision of
Tax Audit Report Once Filed
7. Offline
Filed Tax Audit Report To Be Submitted Online Again?
8. ITR 7 to Be Filed Online?
9. Mandatory
E-Filling of Trust, Society
10. Responsibility of Tax Auditor for
Delay in Uploading
11. Penalty for Non Furnishing of
Report
12. Waiver of Penalty for Non
Furnishing
13. Format of Maintenance of Records of
Tax Audit
14. Communication with Previous Auditor
15. Should CA Accept Tax Audit If
Undisputed Fees of Previous Auditor Not Paid
16. Tar of Pvt Ltd Company
17. Address for NRI Director in ITR
18. Pan of Relative for Unsecured Loan
19. Return Can Be Uploaded Before TAR
20. Problem of Three Tax Auditors of
Same Assessee
21. Problem of Different Methods of
Valuation of Stock in Two Firms
22. Approval of Tar by Assessee Is
Mandatory
23. How to Show Additional Depreciation
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1. STEPS FOR FILLING ONLINE TAX AUDIT
REPORT
REPORT
Q1. What are the steps to be followed
for E-filling of Tax Audit Report?
for E-filling of Tax Audit Report?
Ans.
Step 1- One Time Registration of Chartered Accountant at E-filling website
Step 2 – Login to Assessee account at
e-filling website and Add CA
e-filling website and Add CA
Step 3 – Downloading, Preparing Tax
Audit Report Utility & Generating XML file.
Audit Report Utility & Generating XML file.
Step 4 – Uploading XML file at E-filling
website from CA’s Login Id
website from CA’s Login Id
Step 5 – Approval of form uploaded by CA
at E-filling website from Assessee’s Login Id
at E-filling website from Assessee’s Login Id
Step 6 – Do not forget to file Income
Tax Return in Relevant ITR separately
Tax Return in Relevant ITR separately
2. SOFTWARE REQUIREMENTS
Q2. What are operating system and
runtime environment requirement for E-filling of Tax Audit Report?
runtime environment requirement for E-filling of Tax Audit Report?
Ans.
Operating System – Windows XP with Service Pack 3/ Windows 7/ Windows 8.
Runtime Environment – JRE 1.7 Update 6
and above, 32 Bit is required to run applets for offline forms to work.
and above, 32 Bit is required to run applets for offline forms to work.
3. PROBLEM IN SLOWDOWN OF SYSTEM
Q3. Our system becomes very slow during
working on e-utility. What should we do?
working on e-utility. What should we do?
Ans.
Remove all old versions of Java to improve performance. Better use Google
chrome. Can also use Mozilla Firefox.
4. PROBLEM OF MISMATCH IN NAME & DOB AS
PER ICAI AND PAN DATA
PER ICAI AND PAN DATA
Q4. I am unable to register as CA as
there is difference in name/date of birth as per ICAI and PAN data. What to do?
there is difference in name/date of birth as per ICAI and PAN data. What to do?
Ans.
It is requested to file form 49 amendment and get data rectified in PAN
immediately. Kindly also note that the day you receive a SMS that your pan
amendment has been approved, you will be able to register at site whether you
actually receive PAN or not.
5. ATTACHMENTS
Q5. What are the documents to be
attached to Tax Audit Report?
attached to Tax Audit Report?
Ans.
B/S, P&L, Schedules, Annexures, Notes, Cost Audit Report and Excise Audit
and Other Report, if any, scanned in pdf format after being duly signed by
Assessee and CA, whether digital or physical. Kindly note that word/excel file
can also be digitally signed.
6. PROBLEM OF NEGATIVE FIGURES
Q6. System is not accepting negative
figures in brackets i.e. “()”. What should we do?
figures in brackets i.e. “()”. What should we do?
Ans.
Use negative sign. i.e. minus “-“
7. PROBLEM OF PROVIDING QUANTITATIVE
DETAILS
DETAILS
Q7. Due to nature and complexity of the
business of the assessee, we do not have quantitative information about the
stock. The software is not accepting any comment and it is accepting only
numeric value. What should we do?
business of the assessee, we do not have quantitative information about the
stock. The software is not accepting any comment and it is accepting only
numeric value. What should we do?
Ans.
Kindly note that Quantitative details of only principle items is to be given.
However, in my opinion, if details are not available,
a) Write nil in online form 3CD &
b) Report why quantitative details is
not provided in the following two places:
not provided in the following two places:
i) In paper form 3CD &
ii) Notes to accounts
c) The Following Statement Should Be
Written In Paper Form 3CD As Well As Notes: “Due To Nature & Complexity of
Business of Assessee, It Is Not Possible To Provide Quantitative Details”
Written In Paper Form 3CD As Well As Notes: “Due To Nature & Complexity of
Business of Assessee, It Is Not Possible To Provide Quantitative Details”
8. PROBLEM IN ENTRY OF LARGE
NO. OF FIXED ASSETS
NO. OF FIXED ASSETS
Q8. An assessee had purchased, say 5000
assets. His details of purchase are there in schedule. Online form 3CD again
requires filling each purchase. It is a huge task resulting duplicity of work.
assets. His details of purchase are there in schedule. Online form 3CD again
requires filling each purchase. It is a huge task resulting duplicity of work.
Ans.
In view of our time constraint, such fixed assets may be grouped into
different blocks of assets and each of these groups can be further divided into
2 parts.
i. Assets put to use on or before 2nd
October: For ease of entry in online form 3CD, we will argue that all assets
were put to use on 2nd October, wherever possible.
ii. Assets put to use after 2nd October
(eligible for half of depreciation): For ease of entry in online form 3CD, we
will argue that all assets were put to use on 31st March, wherever possible.
It is also advised to attach the working
of calculation of depreciation under the Income Tax act, 1961 as a schedule so
that breakup of each group is easily visible to the IT department.
of calculation of depreciation under the Income Tax act, 1961 as a schedule so
that breakup of each group is easily visible to the IT department.
The above can be summarized in the
following steps:
following steps:
Step 1 – All fixed assets may be grouped
into different blocks of assets.
into different blocks of assets.
Step 2 – Each of these groups can be
further divided into 2 parts. (i) Assets put to use on or before 2nd October
(ii) assets put to use after 2nd October (eligible for half of depreciation)
further divided into 2 parts. (i) Assets put to use on or before 2nd October
(ii) assets put to use after 2nd October (eligible for half of depreciation)
Step 3 – For assets brought on or before
2nd October, we can argue that those assets were put to use on 2nd October and
accordingly relevant entries can be made in the online form 3CD.
2nd October, we can argue that those assets were put to use on 2nd October and
accordingly relevant entries can be made in the online form 3CD.
Step 4 – For assets brought after 2nd
October, we can argue that those assets were put to use on 31st March and
accordingly relevant entries can be made in the online form 3CD.
October, we can argue that those assets were put to use on 31st March and
accordingly relevant entries can be made in the online form 3CD.
Step 5 – Sale of assets for each of
group should be entered in a separate row while filling online form 3CD.
group should be entered in a separate row while filling online form 3CD.
Step 6 – It is also advised to attach
the working of calculation of depreciation under the Income Tax act, 1961, as a
schedule, so that breakup of each group is easily visible to the IT department.
the working of calculation of depreciation under the Income Tax act, 1961, as a
schedule, so that breakup of each group is easily visible to the IT department.
9. PROBLEM IN VIEWING STOCK FIGURES
Q9. I filled stock details in point 28A.
When after validating and saving, I reopen the form; only one stock figure is
displayed.
When after validating and saving, I reopen the form; only one stock figure is
displayed.
Ans.
It is the inherent problem of the software but your xml file contains the
correct data. Open the xml file in Internet Explorer and check it. You can edit
xml file, however you have to adopt unceremonious way to edit the xml file for
the necessary correction for the item in subsequent rows of point 28A. Therefore
it is advised to fill up point 28A before filling any other point from point 7
onwards.
10. PROBLEM OF DEPRECIATION IN WEBTEL
SOFTWARE
SOFTWARE
Q10. We have received demand relating
to AY 2012-13, for almost for all companies for which income tax return were
filled using Webtel software. The demand pertains to non-deduction of
deprecation u/s32 in the return processed u/s 143(1) by CPC Bangalore, as claim
by us in ITR 6. I just want to know if any other user of Webtel are also facing
same problem.
to AY 2012-13, for almost for all companies for which income tax return were
filled using Webtel software. The demand pertains to non-deduction of
deprecation u/s32 in the return processed u/s 143(1) by CPC Bangalore, as claim
by us in ITR 6. I just want to know if any other user of Webtel are also facing
same problem.
Ans.
The Problem Was Faced Many CA Using Webtel Software Due To Non Updation. I
Suggest Submitting Revised Return or Making Rectification U/S 154.
11. PROBLEM OF NO SPACE FOR COMMODITY
Q11. In online Form 3CD, nature of
business is to be mentioned i.e. Trading/Manufacturing & Retailer/ Wholesaler,
but there is no space given for a particular commodity, say, cloth/ medicine/
cement. What should we do?
business is to be mentioned i.e. Trading/Manufacturing & Retailer/ Wholesaler,
but there is no space given for a particular commodity, say, cloth/ medicine/
cement. What should we do?
Ans.
You can select, say, retailers & thereafter choose others (i.e. 104, 204, etc as
applicable).
12. PROBLEM IN CALCULATION OF NP RATIO
Q12. If any businessman having a cloth
business & also keeps photocopy machine/ agent of LIC, the income from photocopy
machine / commission received from LIC is used for calculating the NP ratio. If
so, then in this case GP ratio is less then NP ratio. So what to do about it?
business & also keeps photocopy machine/ agent of LIC, the income from photocopy
machine / commission received from LIC is used for calculating the NP ratio. If
so, then in this case GP ratio is less then NP ratio. So what to do about it?
Ans.
You have to calculate NP ratio as a
whole of the business for which tax audit was conducted.
whole of the business for which tax audit was conducted.
13. PROBLEM OF BLANK FIELDS IN SAVED
DRAFT XML FILE
DRAFT XML FILE
Q13. When we reopen draft saved xml
file, many fields which we had already entered is showing blank.
file, many fields which we had already entered is showing blank.
Ans.
The software has some inherent errors as
a result when we reopen draft saved xml file, it shows blank i.e. we have to
re-enter the fields again. These fields are 7(B), 8(B), 9(A), 10, 11(D), 12(B),
21(Notes), 22(A), 22 AND 23.
a result when we reopen draft saved xml file, it shows blank i.e. we have to
re-enter the fields again. These fields are 7(B), 8(B), 9(A), 10, 11(D), 12(B),
21(Notes), 22(A), 22 AND 23.
14. PROBLEM OF VIEWING DATA OF XML
BEFORE UPLOADING
BEFORE UPLOADING
Q14. How we can view data of XML before
uploading?
uploading?
Ans.
You can view the xml file of tax audit
report prepared in e utility of department. CA P.K. Agarwalla has prepared the
screen shots of the process to view the same. The process is as follows:
report prepared in e utility of department. CA P.K. Agarwalla has prepared the
screen shots of the process to view the same. The process is as follows:
Go to Programme à Microsoft Office
àMicrosoft Office Access 2003/2007 à New blank data base àClick blank data base
à A window with file name database1.accdb will appear on the right hand side
pane. à Click on create. Your new date base is saved by default in my Documents.
(You may save the same to your choice folder)
àMicrosoft Office Access 2003/2007 à New blank data base àClick blank data base
à A window with file name database1.accdb will appear on the right hand side
pane. à Click on create. Your new date base is saved by default in my Documents.
(You may save the same to your choice folder)
A new data base is opened. Go to and
click External data à Click XML file>Browse the xml file for which you want to
create/view or save the data àClick OKàImport XMLàClick OKàCheck the box “Save
import stepsӈ Close.
Your data base is ready, on the left
hand side pane the indexes for “All Tables” do appear. By clicking any Table/
any point you can easily view and save its contents presently appearing in the
XML file. Once the xml file is saved and the data base is reopened it will show
the updated entries lying in the XML file. If some member finds any error in the
tables he can easily make corrections opening the utility.
hand side pane the indexes for “All Tables” do appear. By clicking any Table/
any point you can easily view and save its contents presently appearing in the
XML file. Once the xml file is saved and the data base is reopened it will show
the updated entries lying in the XML file. If some member finds any error in the
tables he can easily make corrections opening the utility.
Detailed procedural step for Microsoft
Access Office 2007 as well as Microsoft Office 2003 is attached (2 files
attached – namely “Importing XML in MS Office 2003 version” & “Importing XML in
MS Office 2007 version” herewith for ready understanding.
15. PROBLEM OF PRINTING/SAVING UPLOADED
XML FILE
Q15. There is no provision for saving or
printing downloaded Forms 3CB-3CD, or XML file.
printing downloaded Forms 3CB-3CD, or XML file.
Ans.
U can save the work in middle by using
“Save Draft” Button. To view the print option opens the xml file in Microsoft
Access 2007 using new projects. U can find the Data in tabular form.
“Save Draft” Button. To view the print option opens the xml file in Microsoft
Access 2007 using new projects. U can find the Data in tabular form.
16. PROBLEM OF FAKEPATH
Q16. When we are uploading the 3CA and
3CD online one error is coming cannot read fake path file. I have placed the XML
file in c drive fakepath folder and using Google chrome for that. Please help on
the issue.
3CD online one error is coming cannot read fake path file. I have placed the XML
file in c drive fakepath folder and using Google chrome for that. Please help on
the issue.
Ans.
Kindly check the name of folder is
“fakepath” and not as fake path, in C drive.
“fakepath” and not as fake path, in C drive.
17. PROBLEM IN VIEWING XML FILE FROM
CLIENT’S LOGIN
CLIENT’S LOGIN
Q17. We uploaded form 3CD of a client.
When it is viewed from the client’s login (i.e. for approving or rejecting), the
dates in point no. 16(b) of form 3CD is getting interchanged (i.e. in the due
dates column actual dates are seen and vice versa). But there is no mistake at
our end. We have filled in the data in the income tax offline utility correctly
and generated xml.
When it is viewed from the client’s login (i.e. for approving or rejecting), the
dates in point no. 16(b) of form 3CD is getting interchanged (i.e. in the due
dates column actual dates are seen and vice versa). But there is no mistake at
our end. We have filled in the data in the income tax offline utility correctly
and generated xml.
Ans.
Your XML File contains the right data.
Do not worry, upload it.
Do not worry, upload it.
18. HOW TO PRINT UPLOADED XML FILES
Q18. CA has no option to print uploaded
xml files. How to print?
xml files. How to print?
Ans.
CA has no option to print uploaded xml
files. However, it can be printed from assessee’s login id, even before approval
by assessee as the said xml file can be downloaded, from assessee’s login id, in
the pdf format by default.
files. However, it can be printed from assessee’s login id, even before approval
by assessee as the said xml file can be downloaded, from assessee’s login id, in
the pdf format by default.
19. PROBLEM IN GETTING ACTIVATION LINK/SMS
FOR COMPLETING REGISTRATION
FOR COMPLETING REGISTRATION
Q19. A Chartered Accountant in practice
registered himself with his DSC in the e-filing website. But he neither received
any sms nor any activation link in his e-mail. When he tried again to register
himself, the message was that he is already registered. But when he tried to log
in, it was informed that the link is not activated. What should he do now?
registered himself with his DSC in the e-filing website. But he neither received
any sms nor any activation link in his e-mail. When he tried again to register
himself, the message was that he is already registered. But when he tried to log
in, it was informed that the link is not activated. What should he do now?
Ans.
Go to login page and enter your User ID
i.e. ARCA(Mem. No.) e.g. ARCA300700 and enter your Password as given then click
on “Resend Activation Link”. You will get a mail from the site. If it does not
work then reset your Password by sending mail at
validate@incometaxindia.gov.in.
i.e. ARCA(Mem. No.) e.g. ARCA300700 and enter your Password as given then click
on “Resend Activation Link”. You will get a mail from the site. If it does not
work then reset your Password by sending mail at
validate@incometaxindia.gov.in.
20. UNABLE TO SEE XML IN ASSESSEE’S
LOGIN
LOGIN
20. I had uploaded one Form 3CD, 10 days
back and same was reflecting in my log in and I also received message for
uploading. Now when I go to assessee log, same form is not available for
validation. When I try to re-file from my log in I am getting massage that you
are already submitted and assessee has not rejected/accepted.
back and same was reflecting in my log in and I also received message for
uploading. Now when I go to assessee log, same form is not available for
validation. When I try to re-file from my log in I am getting massage that you
are already submitted and assessee has not rejected/accepted.
Ans.
Kindly Go to Work lists and approve it.
21. NON ACCEPTANCE OF NEGATIVE FIGURES
IN FORM 29B
IN FORM 29B
Q21. In the department utility, the
point no.9 of Annexure A of Form 29B is not accepting negative figures.
point no.9 of Annexure A of Form 29B is not accepting negative figures.
Ans.
Kindly Type 0, Until Such Inherent Error
in Software Is Rectified By Department
in Software Is Rectified By Department
22. USE OF SPECIAL CHARACTERS
Q22. Can we use special characters while
typing address?
typing address?
Ans.
No, special characters are not allowed
while typing address.
while typing address.
23. PROBLEM OF NON GENERATION OF XML
Q23. The department utility is opening
the saved data and saving draft successfully but it does not generate XML file
when we click generate XML file
the saved data and saving draft successfully but it does not generate XML file
when we click generate XML file
Ans.
First validate it and generate
24. PROBLEM OF SWAPPING OF DUE DATE AND
ACTUAL DATE
ACTUAL DATE
Q24. I have noticed that under the
Clause No. 16(b) there is an error in the utility. The columns of due date and
actual date for payments as show in the utility have been reversed against the
actual data being generated in the XML file. The column headers should be
swapped. The same is also evident from the form being generated at the time of
approval.
Clause No. 16(b) there is an error in the utility. The columns of due date and
actual date for payments as show in the utility have been reversed against the
actual data being generated in the XML file. The column headers should be
swapped. The same is also evident from the form being generated at the time of
approval.
Ans.
This is the inherent problem. Kindly do
not swap the dates at the time of data entry. IT department had been
communicated with such problems.
not swap the dates at the time of data entry. IT department had been
communicated with such problems.
FREQUENTLY ASKED QUESTIONS ON E-FILLING OF TAX AUDIT REPORTS – OTHER ISSUES
1. NO. OF TAX AUDIT
Q1. Whether Tax Audit Report u/s 44AD
etc will be counted in the specified limits of 45 Tax Audits?
etc will be counted in the specified limits of 45 Tax Audits?
Ans.
As per Council Guidelines
No.1-CA(7)/02/2008, dated 8th August,2008, these will not be included and you
can file unlimited such Tax Audit Reports
No.1-CA(7)/02/2008, dated 8th August,2008, these will not be included and you
can file unlimited such Tax Audit Reports
Q2. What are the limits on signing of
Tax Audit Report?
Ans.
As per Council Guidelines
No.1-CA(7)/02/2008, dated 8th August,2008,
No.1-CA(7)/02/2008, dated 8th August,2008,
a) A CA can sign up to 45 Tax Audit.
b) In case of Partnership Firm, limit
will be 45 / Partner.
will be 45 / Partner.
c) Audit U/S 44AD, 44AE, 44AF will not
be included in the limit. (FROM FY 2012-13, SEC 44AF ISNOT APPLICABLE)
be included in the limit. (FROM FY 2012-13, SEC 44AF ISNOT APPLICABLE)
2. ONLINE FILLING, DATE OF SIGNING AND
DATE OF FILLING
DATE OF FILLING
Q3. What are the Tax Audit Reports which
are to be compulsorily filed online?
are to be compulsorily filed online?
Ans.
As per Notification No. 34/2013 dated
01/05/2013, & Notification No. 42/2013 dated 11/06/2013, Audit reports under
Sections 10 (23C) (iv), (v), (vi) or (via), 10A, 12A (1)(b), 44AB, 80-IA, 80-IB,
80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB are to be filed electronically. (It
covers audit report u/s 44AD, 44AE, 44AF also) (FROM FY 2012-13, SEC 44AF is not
applicable)
01/05/2013, & Notification No. 42/2013 dated 11/06/2013, Audit reports under
Sections 10 (23C) (iv), (v), (vi) or (via), 10A, 12A (1)(b), 44AB, 80-IA, 80-IB,
80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB are to be filed electronically. (It
covers audit report u/s 44AD, 44AE, 44AF also) (FROM FY 2012-13, SEC 44AF is not
applicable)
Q4. Should we sign Tax Audit Report on
30th September?
30th September?
Ans.
As the word “before” has been used in
sec. 44AB, we should not sign Tax Audit Report on 30th September. You should
sign Tax Audit Report before 30th September, since the assessee is required to
“obtain” Tax Audit Report before the due date i.e. 30th September.
sec. 44AB, we should not sign Tax Audit Report on 30th September. You should
sign Tax Audit Report before 30th September, since the assessee is required to
“obtain” Tax Audit Report before the due date i.e. 30th September.
Q5. Where audit is to be conducted u/s
92E, what is the last date of filling online Tax Audit Report?
92E, what is the last date of filling online Tax Audit Report?
Ans.
Normally, Tax Audit Report is to be
submitted by 30th September. However, for these assesses Report u/s 92E as well
as Tax Audit Report can be filled by 30th November.
submitted by 30th September. However, for these assesses Report u/s 92E as well
as Tax Audit Report can be filled by 30th November.
3. CAN A PARTNER SIGN ON BEHALF OF OTHER
PARTNERS
PARTNERS
Q6. Please advice in case of partnership
firm can only one partner sign all the reports?
firm can only one partner sign all the reports?
Ans.
a) Clause 12 Of Part I of Schedule I of
Chartered Accountants Act allow a partner to sign on behalf of (i) Other
Partner (ii) Firm
Chartered Accountants Act allow a partner to sign on behalf of (i) Other
Partner (ii) Firm
b) Sign can be either digital or
physical
physical
c) In my view, one partner can sign form
3CD etc. keeping in view the limit of 45 audits per partner.
3CD etc. keeping in view the limit of 45 audits per partner.
[Clause 12 of Part I of Schedule I of
Chartered Accountants Act states that “A CA in practice will be guilty if
he allows a person not being a member of the institute in practice, or a
member not being his partner to sign on his behalf or on behalf of his firm, any
balance-sheet, P&L a/c, report or financial statements”]
Chartered Accountants Act states that “A CA in practice will be guilty if
he allows a person not being a member of the institute in practice, or a
member not being his partner to sign on his behalf or on behalf of his firm, any
balance-sheet, P&L a/c, report or financial statements”]
4. PROBLEM OF TWO TAX AUDITORS OF SAME
ASSESSEE
ASSESSEE
Q7. An individual has two businesses
audited by two different tax auditors. How to submit Tax Audit Report?
audited by two different tax auditors. How to submit Tax Audit Report?
Ans.
In my view, you can follow the below
mentioned steps:
mentioned steps:
a) Combine data of two B/S, P/l, tax
audit report and submit as one
audit report and submit as one
b) If tax audit conducted by two CAs,
any CA can submit.
any CA can submit.
c) It is advised to attach physical
copies of both Tax Audit Reports too, for disclosure of the fact that (i) two
CAs have done Tax audit and (ii) that CA who is filling had relied on the work
of other CA
copies of both Tax Audit Reports too, for disclosure of the fact that (i) two
CAs have done Tax audit and (ii) that CA who is filling had relied on the work
of other CA
5. CAN RETURN BE FILED AFTER DUE DATE
Q8. Can Income tax Return be e-filed
after 30th September? However we will file Tax Audit Report within 30th
September?
after 30th September? However we will file Tax Audit Report within 30th
September?
Ans.
Yes, Online Tax Audit Report is to be
filed by 30th September to avoid penalty of Rs. 1.5 Lakhs or ½% of Turnover,
whichever is lower. However, return may be filed later. However, such return
will be treated as belated return.
filed by 30th September to avoid penalty of Rs. 1.5 Lakhs or ½% of Turnover,
whichever is lower. However, return may be filed later. However, such return
will be treated as belated return.
6. REVISION OF TAX AUDIT REPORT ONCE
FILED
FILED
Q9. Can online filed Tax Audit Report be
revised?
revised?
Ans.
A Tax Audit Report which has not been
approved by assessee can be revised. However after it has been approved by the
assessee, it should not be revised. However, there is no restriction by the
utility, as of now, to upload revised xml. So we should take due care, so that
correct data is uploaded in the first instance itself. However, members may
kindly note that, all the xml files uploaded will be there in their domain.
approved by assessee can be revised. However after it has been approved by the
assessee, it should not be revised. However, there is no restriction by the
utility, as of now, to upload revised xml. So we should take due care, so that
correct data is uploaded in the first instance itself. However, members may
kindly note that, all the xml files uploaded will be there in their domain.
7. OFFLINE FILED TAX AUDIT REPORT TO BE
SUBMITTED ONLINE AGAIN?
SUBMITTED ONLINE AGAIN?
Q10. I have uploaded 5 returns without
uploading tax audit as it was required to submit offline at that time. Should we
submit these again online?
uploading tax audit as it was required to submit offline at that time. Should we
submit these again online?
Ans.
No, you are not required to submit IT
Return online again. However, kindly ensure that Tax audit Report is duly
uploaded within due date.
Return online again. However, kindly ensure that Tax audit Report is duly
uploaded within due date.
8. ITR 7 TO BE FILED ONLINE?
Q11. Whether e-Filing of ITR 7 For AY
2013 – 14 mandatory or can we file paper returns also?
2013 – 14 mandatory or can we file paper returns also?
Ans.
It Is Mandatory To Submit Online
9. MANDATORY E-FILLING OF TRUST, SOCIETY
Q12. Are All Charitable Trust and
Cooperative Society’s Income Tax Return Are to E-File?
Cooperative Society’s Income Tax Return Are to E-File?
Ans.
The Charitable Trusts etc. are Required
To File Return Online Also.
To File Return Online Also.
10. RESPONSIBILITY OF TAX AUDITOR FOR
DELAY IN UPLOADING
DELAY IN UPLOADING
Q13. Is tax auditor responsible for
delay in uploading of Tax Audit Report?
delay in uploading of Tax Audit Report?
Ans.
Guidance Note on Tax Audit states
that normally, it is the professional duty of the CA to ensure that the audit
accepted by him is completed before the due date. Hence, yes, if delay is
attributable to his part.
that normally, it is the professional duty of the CA to ensure that the audit
accepted by him is completed before the due date. Hence, yes, if delay is
attributable to his part.
11. PENALTY FOR NON FURNISHING OF REPORT
Q14. What are the penalties for non
furnishing a Tax Audit Report?
furnishing a Tax Audit Report?
Ans.
Sec 271B states that, if any person
fails to get his accounts audited in respect of any previous year or years
relevant to an assessment year or furnish a report of such audit as required
under section 44AB, the Assessing Officer may direct that such person shall pay,
by way of penalty, a sum equal to one-half per cent of the total sales, turnover
or gross receipts, as the case may be, in business, or of the gross receipts in
profession, in such previous year or years or a sum of one hundred fifty
thousand rupees, whichever is less.
fails to get his accounts audited in respect of any previous year or years
relevant to an assessment year or furnish a report of such audit as required
under section 44AB, the Assessing Officer may direct that such person shall pay,
by way of penalty, a sum equal to one-half per cent of the total sales, turnover
or gross receipts, as the case may be, in business, or of the gross receipts in
profession, in such previous year or years or a sum of one hundred fifty
thousand rupees, whichever is less.
12. WAIVER OF PENALTY FOR NON FURNISHING
Q15. What are the circumstances under
which penalty cannot be imposed for non furnishing of Tax Audit Report?
which penalty cannot be imposed for non furnishing of Tax Audit Report?
Ans.
As per section 273B, no penalty is
imposable under section 271B on the assessee for the above failure if he proves
that there was reasonable cause for the said failure. The onus of proving
reasonable cause is on the assessee. Some of the instances where
Tribunals/Courts have accepted as “reasonable cause” are as follows:
imposable under section 271B on the assessee for the above failure if he proves
that there was reasonable cause for the said failure. The onus of proving
reasonable cause is on the assessee. Some of the instances where
Tribunals/Courts have accepted as “reasonable cause” are as follows:
(a) Resignation of the tax auditor and
consequent delay;
consequent delay;
(b) Bona fide interpretation of the term
`turnover’ based on expert advice;
`turnover’ based on expert advice;
(c) Death or physical inability of the
partner in charge of the accounts;
partner in charge of the accounts;
(d) Labour problems such as strike, lock
out for a long period, etc.;
out for a long period, etc.;
(e) Loss of accounts because of fire,
theft, etc. beyond the control of the assessee;
theft, etc. beyond the control of the assessee;
(f) Non-availability of accounts on
account of seizure;
account of seizure;
(g) Natural calamities, commotion, etc.
13. FORMAT OF MAINTENANCE OF RECORDS OF
TAX AUDIT
TAX AUDIT
Q16. What is the format for maintaining
records of Tax Audit Assignments?
records of Tax Audit Assignments?
Ans.
Record of Tax Audit Assignments
1. Name of the Member accepting the
assignment
assignment
2. Membership No.
3. Financial year of audit acceptance
4. Name and Registration No. of the
firm/ firms of which the member is a proprietor or partner.
firm/ firms of which the member is a proprietor or partner.
|
Sl. No.
|
Name of the Auditee
|
AY of the Auditee
|
Date of Appointment
|
Date of acceptance
|
Name of the firm on whose behalf the member has
accepted the assignment |
Date of communication with the previous auditor
(applicable) |
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
|
|
|
|
|
|
|
14. COMMUNICATION WITH PREVIOUS AUDITOR
Q17. Is communication with the previous
tax auditor necessary?
tax auditor necessary?
Ans.
Yes
15. SHOULD CA ACCEPT TAX AUDIT IF
UNDISPUTED FEES OF PREVIOUS AUDITOR NOT PAID
UNDISPUTED FEES OF PREVIOUS AUDITOR NOT PAID
Q18. Should a CA accept Tax audit where
undisputed fees of previous auditor have not been paid?
undisputed fees of previous auditor have not been paid?
Ans.
As per Council Guidelines
No.1-CA(7)/02/2008, dated 8th August,2008, “a member of the Institute in
practice shall not accept the appointment as auditor of an entity in case the
undisputed audit fee of another CA for carrying out the statutory audit under
the Companies Act, 1956 or various other statutes has not been paid”
No.1-CA(7)/02/2008, dated 8th August,2008, “a member of the Institute in
practice shall not accept the appointment as auditor of an entity in case the
undisputed audit fee of another CA for carrying out the statutory audit under
the Companies Act, 1956 or various other statutes has not been paid”
16. TAR OF PVT LTD COMPANY
Q19. Whether Form 3CA or Form 3CB to use
for Tax Audit Report purpose of a Pvt. Ltd. Co. having statutory Audit done by
the same CA.
for Tax Audit Report purpose of a Pvt. Ltd. Co. having statutory Audit done by
the same CA.
Ans.
Form No 3CA-3CD
17. ADDRESS FOR NRI DIRECTOR IN ITR
Q20. While filling Director Details in
ITR 6, only Indian Address is accepted in the form. However, one of the
directors is an NRI and having foreign address. Should we fill in a local
address of the Director and proceed or there is some other way out?
ITR 6, only Indian Address is accepted in the form. However, one of the
directors is an NRI and having foreign address. Should we fill in a local
address of the Director and proceed or there is some other way out?
Ans.
ITR-6 Required Residential Address. If
Indian Address Available Then Give.
Indian Address Available Then Give.
|
Particulars of MD, Directors, Secretary and Principal officer(s)
who have held the office during the previous year
|
Name
|
Designation
|
Residential
Address
|
PAN
|
|
S.No.
|
|
|
|
|
|
|
|
|
|
|
18. PAN OF RELATIVE FOR UNSECURED LOAN
Q21. Whether it is mandatory to mention
Pan No of Party Related with Unsecured Loan in online 3CD Form
Pan No of Party Related with Unsecured Loan in online 3CD Form
Ans.
E Filing software is not accepting it
without PAN. Hope error will be rectified soon.
without PAN. Hope error will be rectified soon.
19. RETURN CAN BE UPLOADED BEFORE TAR
Q22. Is there any problem in uploading
Income Tax Return before filing/approval of Tax Audit forms?
Income Tax Return before filing/approval of Tax Audit forms?
Ans.
Date of furnishing TAR to department is
to be mentioned in ITR. So TAR is to be filed first.
to be mentioned in ITR. So TAR is to be filed first.
20. PROBLEM OF THREE TAX AUDITORS OF
SAME ASSESSEE
SAME ASSESSEE
Q23. An Individual Has Three Businesses
Audited By Same/Different Tax Auditors. How To Submit Tax Audit Report?
Audited By Same/Different Tax Auditors. How To Submit Tax Audit Report?
Ans.
In my view, you can follow the below
mentioned steps.
mentioned steps.
a) Combine data of all B/S, P/l, tax
audit report and submit as one
audit report and submit as one
b) If tax audit conducted by different
CAs, any CA can submit.
CAs, any CA can submit.
c) It is advised to attach physical
copies of all Tax Audit Reports too, for disclosure of the fact that (i)
different CAs have done Tax audit and (ii) that CA who is filling had relied on
the work of all other Cas. (iii) There are three different Tax audit report
whose data has been combined while submitting online TAR.
copies of all Tax Audit Reports too, for disclosure of the fact that (i)
different CAs have done Tax audit and (ii) that CA who is filling had relied on
the work of all other Cas. (iii) There are three different Tax audit report
whose data has been combined while submitting online TAR.
21. PROBLEM OF DIFFERENT METHODS OF
VALUATION OF STOCK IN TWO FIRMS
VALUATION OF STOCK IN TWO FIRMS
Q24. An Individual Have 2 Firms. In One
Firm, Method Of Valuation Of Closing Stock Is Cost Or Market Price Whichever Is
Less. However, In Other Firm, Stock Is Valued At Market Price. How To Show It In
Online Form 3cd?
Firm, Method Of Valuation Of Closing Stock Is Cost Or Market Price Whichever Is
Less. However, In Other Firm, Stock Is Valued At Market Price. How To Show It In
Online Form 3cd?
Ans.
It is better to mention the facts in
separate sheet and attach with the online audit report.
separate sheet and attach with the online audit report.
22. APPROVAL OF TAR BY ASSESSEE IS
MANDATORY
MANDATORY
Q25. What If The Assessee Does Not
Approve The Audit Report Submitted Before The Due Date
Approve The Audit Report Submitted Before The Due Date
Ans.
It may be presumed that no tar has been
submitted by assessee
submitted by assessee
23. HOW TO SHOW ADDITIONAL DEPRECIATION
Q26. How To Show Additional Depreciation
in the Online Form 3CD.
in the Online Form 3CD.
Ans.
Add It with Normal Depreciation
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