Letter of Resentment towards FMO's Approach on Direct-Indirect Taxes & Corporate Affairs by CAAS

The Chartered Accountants Association, Surat has written a representation letter to the Ministry of Finance stating their Resentment towards FMO's Approach on Direct-Indirect Taxes & Corporate Affairs. Read the official representation letter below: 

 To,
Smt. Nirmala Sitharaman,
Ministry of Finance,
North Block, New Delhi 110 001.

Hon’ble Madam,

Sub: Request for Extension of Due Dates for filing Tax Audit, Audit Reports under Income Tax Act and ITR for Assessment Year 2020-21.

Tax Practitioners Association (TPA), Indore having Advocates, CAs, CS and Tax Practitioners as its members with over 550 members. The TPA regularly takes up initiatives to act as a bridge between stakeholders and concerned regulatory bodies in order to convey and help in resolving genuine grievances or effectively implement the laws.

Today, we have come forward with a request of extending the due dates of Tax Audit, Transfer Pricing Audit, various other Audit Reports under Income Tax Act and Income Tax Return filing for AY 2020-21.

Apart from others, this request is based on following major reasons being:

The Covid-19 Pandemic, Night Curfew and its effect on professional work:

1. At the outset, we appreciate the earlier extension provided for tax audit and income tax return filing up to December 31, 2020 due to continuing pandemic of Covid -19. The spread and severity of the Corona virus has not been reduced and instead it is rising each day, Night curfew continue, Restriction on Keeping offices open etc. impacting adversely in conducting audit and preparing tax returns. Commuting via public buses/trains and/or other public transport is restricted and not fully operational.

Due to this, several industries and private offices have still not resumed functioning at all. This also includes the offices of the Tax Advocates, CA’s , Tax Practitioners etc. resulting the details required for carrying on tax audit and filing the return of income are not being received promptly and thus the audits cannot be efficiently performed. Further also travelling to the place of audit is very difficult for the professionals and their staff.

Several our members have also been infected and have not been able to work for minimum of 14 days which extends to a month due to post Covid-19 health recovery. Also, visiting any audit place exposes them to the virus making them prone infection. Further, the senior citizens including senior aged professionals  and senior aged assessee are advised to stay at home. These hindrance are making it very difficult for the assessee, the Tax Advocates, CAs and the Tax Practitioners to comply with the presently extended due dates. We would like to appreciate that for the very same reasons that we have cited above, i.e. genuine difficulties being faced by the taxpayers due to outbreak of COVID-19 pandemic, Night Curfew the CBDT has earlier extended the date for filing Tax audit and income tax return filing up to 31st December, 2020 and 31st Jan., 2021 respectively, but the underlying reason of COVID-19 still continuing more vigorously. 

To read/download the complete official representation, find the enclosed file