Audit report

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2013 In 3cd payment made to relatives . in this poni we have to show payments or excessive & unresaonable payments

Ganeshbabu K

Ganeshbabu K (Expert)
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25 August 2013 Let me tell you the responsibility of Tax auditor/Audit plan in relation to reprtin under Section 40A(2)(b) Clause 18

1)Obtain a full list of specified persons as contemplated in this section

2)obtain details of expenditure/paymanets made to the specified persons

3)Scrutinize all items of expenditure, payments to all above persons

4)for the details programme relating to 40A(2)(b) refer to revised Guidence note on tax audit 139 page..

However in short as far as reporting is concerned we need to report all related party trnsactions,,it is the duty of AO to ascertain whether it is reasonable/not reasanable,,whether to allow,disallowe
..
tax auditor cannot disallow under section 40A(2)(b)

Ganeshbabu K

Ganeshbabu K (Expert)
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25 August 2013 Addition to above reply collect the data accordingly

The e-filing portal requires reporting in the following format:-

1)Name of the relate party

2)Relaxation

3)date

4)Payment made(Amount)

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