Hi,
I have a Individual client wherein the turnover is less than 1 crore. They require the 3cd report to be signed by the chartered accountant. This is because the bankers in small town usually ask for 3cd report from the entities. Is it mandatory to have a 3cd report even if the turnover is less than 1 crore.
if yes. if I upload that form 3cd in the income tax website, will it be counted in my limit of 45 tax audit assign ments. please clarify urgently
Basavaraj
Dear Sir,
First of all, it shall not be counted in your limit of 45 Audits(since it will fall under section 44AD & there is specific exclusion for audits under section 44AD for limit calculations).
Bank generally ask for 3CD report because they get other data in the form 3CD like payments made to related parties, quantities traded, etc.
This has become a general trend these days, for any paper they say " Iss pe CA ka thappa lagwa lao" Anyhow, bank cannot insist for form 3CB-CD as per law, because this report is specifically meant for income tax department. What other thing you could do is sign balancesheet and profit and loss and issue general audit report not under any statute.
CAclubindia
