Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Any opinion or comment on newly inserted clause 44 of form 3cd

Vikas Jain (Student) (80 Points)

01 August 2018

Clause 44 of Form 3CD ( as ammended ) asks details about the total expenditure incurred with respect to GST registered and unregistered entities. So, is the expenditure is limited only to the purchases or whatever expenditure debited to Trading and Profit & Loss Account?

Please guide.

Reply
Follow
Share

14 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

expenses other than local purchases

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

It just specifies the word 'expenditure' so in my opinion it means all expenditure debited to PNL and Trading.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

The assessee is required to disclose break-up of total expenditure incurred during the year, in relation to the entities registered and not registered under GST.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : NAVEEN CHAND
	expenses other than local purchases

reference?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

expenditure doesn't purchases

Vikas Jain (Student) (80 Points)
Replied 01 August 2018

Thanks for reply.

But I think, it will be very tedious work to find out all expenditure incurred under each head and segregate them into whether such expenditure is paid/incurred with GST registered or unregistered entities.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

discussion is carry on ...

Vikas Jain (Student) (80 Points)
Replied 01 August 2018

It is incorrect. Purchase is also an expenditure.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

find a conclusion soon

but as per my opinion , purchases will not be the part of this

RAJA P M ("Do the Right Thing...!!!") (127334 Points)
Replied 01 August 2018

No...
Purchases also included in nature of Expenditure.
We will calculate the Total which taxable (with GST) inwards and non taxable (without GST) is required.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : Vikas Jain
	Thanks for reply. But I think, it will be very tedious work to find out all expenditure incurred under each head and segregate them into whether such expenditure is paid/incurred with GST registered or unregistered entities.

It will be an add on agreed but a solution to this is while booking expenditure debiting it to various heads as required.

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : RAJA P M
	No... Purchases also included in nature of Expenditure.We will calculate the Total which taxable (with GST) inwards and non taxable (without GST) is required.

Agreed

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : RAJA P M
	No... Purchases also included in nature of Expenditure.We will calculate the Total which taxable (with GST) inwards and non taxable (without GST) is required.

This will actually serve the purpose of filing GST returns and GST audit. Hence making maintenance of accounts perfect.