Transfer pricing & tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2011
If any company liable to get transfer Pricing (TP) audit report then in this case what is the last date to get tax audit report.

30th September or 30th November

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 September 2011 As per section 139(1) explanation 2( aa), due date is 30 th November 2011.

Krishna Mohan

Krishna Mohan (Expert)
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24 October 2011 Whether 30th November,2011 is only for audit u/s 92E or for audit u/s 44AB and 92E as well?

Sanjana

Sanjana (Expert)
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05 November 2011 I disagree with the above answer....

Explanation 2(aa) to Section 139(1) specifies the due date for filing the Return of Income and not the date of the Tax Audit Report.

Hence as per Explantion 2(aa) of Section 139(1) due date for filing the Return of Income for Companies to whom Transfer Pricing is applicable would be 30 November of the assessment year.

As per Section 44AB every person who falls within the purview of Tax Audit should "get his accounts of such previous year audited by an accountant before the specified date" and as per Explanation (ii) to Section 44AB “specified date” in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 30th day of September of the assessment year.

Hence although logically and correctly the Tax Audit Report should have been dated upto November 30 (for companies to whom Transfer Pricing is applicable) but due to lacuna in the law and on strict interpretation of the Act, the Tax Audit Report can be dated upto September 30 of the assessment year even for companies to whom Transfer Pricing is applicable.

Hence it is advisable to get the Tax Audit Report dated September 30 of the assessment year.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 November 2011 I stand corrected. 'Due date' of return filing is 30th November and 'specified date' for 44AB is 30th September.

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CA Krunal

CA Krunal (Expert)
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25 September 2013 Hi Ms.Sanjana & Chakrapani,

with effect from 01/04/12, the definition of specified date changed from 30th September to "the due date for furnishing the return of income under sub section (1) of section 139"

Hence now the due date for tax audit report is also same as due date of return and hence in case of transfer pricing audit is there then due date of tax audit report will also be 30th November.

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CA Krunal

CA Krunal (Expert)
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25 September 2013 I just posted on this link so if somebody refers (like me) he would have clear picture.

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