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Tax audit clause 44

Jyoti Narang (Kkk) (1202 Points)

24 August 2022

is it mandatory to give reporting under clause 44 for audit for fy 2021-22

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28 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

Yes, The Clause 44 of the Form 3CD is effective for Assessment Year 2022-23 i.e. for the Financial Year 2021-22 because the compliance of this clause was kept in abeyance till 31/03/2022 but for all the reports submitted after that date the clause is mandatory.

2 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

@ Dhirajlal rambhia sir, in what scenario the replacement cost is used in raw material could you please explain me what is a replacement cost when it is use?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

Don't go too far, first solve easier problem. In the Petrol dealer sum, there is no requirement of replacement cost.

Whenever that will be required, I will mention it...

1 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

Dhiraj Lal rambhia sir I solved can I send it ,please check I did

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

Tell me what are the values of opening stock & purchase of the month in Rs.?

2 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

Honourable Dhirajlal sir please check me sir,

1.valuation of inventory on Jun 21 on 30 the (FIFO) method

op.Inv ten thousand*92=920000
purchases twenty thousand*90=1800000
ten thousand*95=950000

Total purchases = 20+10= thirty thousand

sold twenty thousand and unsold is three thousand

three thousand*90= two lakh seventy thousand
ten thousand*95= nine lakh fifty thousand

_______________

twelve lakh twenty thousand

closing inventory

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

Very Good...

Correction... Sold 27000 lts & unsold ... 13000 lts.

Now calculate the cost of inventory sold during the month...

2 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

Cost of goods sold= ope.inve+ purchases-closing inventory= nine lakh twenty thousand+ twenty seven lakh fifty thousand - twelve lakh twenty thousand =24,50,000/_

sales - cogs

( thirty lakh forty thousand - twenty four lakh fifty thousand)...

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

That is Gross Profit...

What is Net Profit?

1 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

Sir ,net profit formula is Gross profit _ Expenses

so Gross profit ( thirty lakh fourty thousand _ twenty four lakh fifty thousand = five lakh ninety thousand..

so , 590000 - 4 lakh. = net profit 1,90,000

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160629 Points)
Replied 24 August 2022

Hope you have understood it clearly, and not copied down from book...

1 Like

MPR Sanjay Kumar (3005 Points)
Replied 24 August 2022

Dear sir ,I just gothrough the sum and searched in Google some examples ,to be frank I will tell the truth ...

sir please explain me the Replacement cost in raw material usage ?? in what scenario they are using