Tax audit revision

CBDT vide Notification No. 88/2016-Income Tax dated 29th September, 2016 has modified the Tax audit report. Further amendments have been made vide Notification No. 88/2017 dated 3rd July, 2017.

Revised Tax Audit Report Form 3CD for AY 2017-18

FORM NO. 3CD 
[See rule 6 G(2)] 
Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 
PART – A

Revised clause 13(a) of the revised Form 3CD related to ICDS disclosures are as under:

13. (a) Method of accounting employed in the previous year 
(b) Whether there had been any change in the method of accounting employed vis-a-vis the method employed in the immediately preceding previous year. 
(c) If answer to (b) above is in the affirmative, give details of such change, and the effect thereof on the profit or loss

(d) whether any adjustment is required to be made to the profits or loss for complying with the provisions of income computation and disclosure standards notified under section 145(2)

(e) if answer to (d) above is in affirmative give details of such adjustments:

                                                                              Increase                   Decrease                   Net Effect
in profit (Rs.)            in profit (Rs.)               (Rs.)

ICDS I       Accounting Policies
ICDS II      Valuation of Inventories
ICDS III     Construction Contracts
ICDS IV     Revenue Recognition
ICDS V      Tangible Fixed Assets
ICDS VI     Changes in Foreign Exchange Rates
ICDS VII    Governments Grants
ICDS VIII   Securities
ICDS IX     Borrowing Costs
ICDS X      Provisions, Contingent Liabilities and Contingent Assets        Total

(f) Disclosure as per ICDS :

(i)  ICDS I – Accounting Policies
(ii) ICDS II –  Valuation of Inventories
(iii) ICDS III – Construction Contracts
(iv) ICDS IV – Revenue Recognition
(v) ICDS V – Tangible Fixed Assets
(vi) ICDS VII – Governments Grants
(vii) ICDS IX – Borrowing Costs
(viii) ICDS X – Provisions, Contingent Liabilities and Contingent Assets.   

Download Revised Tax Audit Report Form 3CD in MS Excel Format (applicable for reports issued before 19th July, 2017) Click Here >>

Download Revised Tax Audit Report Form 3CD in MS Excel Format (applicable for reports issued on or after 19th July, 2017) Click Here >>

Courtesy: https://abcaus.in

Date of tax audit report filed on e-filing site......

Refer: revised-forms-3ca-3cb-3cd-tax-audit-report

In case of revision, the audit report should be given in the manner suggested by the Institute in SA-560 (Revised) “Subsequent Events”. It may be pointed out that report under section 44AB should not normally be revised. However, sometimes a member may be required to revise his tax audit report on grounds such as:

• revision of accounts of a company after its adoption in annual general meeting.
• change of law e.g., retrospective amendment.
• change in interpretation, e.g. CBDT’s circular, judgments, etc.
• Any other reason like system/software error requiring change in report already uploaded.

In case, where a member is called upon to report on the revised accounts, then he must mention in the revised report that the said report is a revised report and a reference should be made to the earlier report also. In the revised report, reasons for revising the report should also be mentioned.

The e-filing portal allows uploading such Revised Audit Report by the CA for the same PAN and Assessment Year. 

Refer: 1. revision-of-tax-audit-report

2. guidance-note-on-revision-of-audit-report

3.https://tax guru.in/income-tax/tax-audit-report-revised.htm l