Tax audit checklist for small and medium clients

NAME OF THE CLIENT

File No:

NAME OF CONTACT PERSON [Accountant/Prop/Partner]

Cell No:

NATURE OF WORK

STAFF NAME

Initial or

Tick of CA

Obtained the Tax Audit appointment letter

List of Books obtained for verification

Vouching of Transactions

Daybook and Ledger review – Manual / Computerized

Confirmation of VAT Returns – Sales, Purchase, VAT paid and payable

VAT Revised return, whether done in case of Difference

Confirmation of Service Tax Returns – Taxable services turnover

Service Tax Revised return,whether done in case of Difference

Change in nature of business and change in method of accounting

Bank balances/ Bank Loans confirmation

Debtors / Creditors balances confirmation or Confirmation not obtained

Additions / Sale of Depreciable assets – Verification of purchase and sale date – obtain bill copies

31

Loans and Advances nature of 269 SS / T – LF print and review

21

Cash payments under Section 40A(3) u/s  above Rs.20,000/-

40

Compared GP / NP Ratios of current year with previous year

Incomes not credited in P&L account – amounts directly credited with capital and current account

Exempted income credited in P&L account – Dividend or Agricultural income or LIC Maturity

34

Verified TDS Returns with expenses in P&L account

Payments covered under Section 43B – whether paid before the due date of filing return

20

If ESI / PF covered – verify payment made after due date -  for disallowance

In case of Partnership firm – Change in Partners or in Profit sharing ratio

21

In case of Partnership firm – verify Partners Interest on capital & salary permissible amount

17

Purchase or Sale property if any – Section 43CA / Section 50C

21

Capital expenditure, Personal Expenses, Penalty paid, Donation Pooja exp. etc. debited in P&L account – Disallowable expenses

23

Payments to persons ie. Relatives, specified under S.40A(2)(b)

27

Prior period Income or Expenditure booked in current year –

if material, their need for revised return for the concerned year

33

Chapter VI A deductions – whether proofs obtained

35

Stock Book verification on major items –extracted details opening stock, purchase, sales, closing stock., loss if any

Stock valuation certified by client Vs 31st March stock given in Bank and in VAT return, in case of input credit on 31st March

26 AS from the Income Tax Department website taken and Reconciliation with Form 16/16A

Any other points relevant to specific Client

Declaration / Certification  from the Client

Discussion with the Client