THE CBDT AMENDS RULE 6G AND REVISES TAX AUDIT FORM 3CD

The CBDT has updated Tax Audit Form 3CD and made changes to Rule 6G.

The Central Board of Direct Taxes [CBDT] has amended Rule 6G and Tax Audit Form [Form 3CD]. According to the notification, the assessee may now revise form 3CD if a recalculation of disallowance under section 40 or section 43B is needed.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st April 2021
(INCOME-TAX)

246 G.S.R. (E). –– The Central Board of Direct Taxes hereby makes the following rules to amend the Income-tax Rules, 1962, in the exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act (43 of 1961):

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1. A brief title and introduction.–

(1)The Income-tax (eighth Amendment) Rules, 2021 can be used to refer to these regulations.
(2) They will take effect on the day they are published in the Official Gazette.

The Income-tax Rules of 1962 state that:

(a) After sub-rule (2) in rule 6G, the following sub-rule shall be inserted:

“(3) The person may revise the report of audit furnished under this rule by obtaining a revised report of audit from an accountant, duly signed and checked by such accountant, and furnishing it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing the report under subrules (1) and (2) that necessitates a recalculation

(b) in Appendix II, in Form 3CD,-

I in PART –A, clause 8A shall be replaced by the following clause: – “8A “Has the assessee chosen to be taxed under section 115BA/115BAA/115BAB/115BAC/115BAD?

SEBI – Approved amendments in SEBI LODR Regulations Board Meeting

(ii) in PART-B, the following clause shall be substituted for clause 17:

“17. Where any land or building, or both, has been transferred for a consideration less than the value adopted, assessed, or assessable by any authority of a State Government referred to in section 43CAor 50C during the previous year, please report it.

audit form

(iii) The following sub-clauses shall be substituted for sub-clauses (ca) and (cb) in clause 18, namely:

“(ca) Written down value adjustment made under section 115BAC/115BAD (for the assessment year 2021-2022 only)……

(cb) Adjustment to the written down value of an intangible asset due to the exclusion of the value of a company or profession’s goodwill…..

(cc) Wrongly written down value…….”;

(iv) in clause 32, the following sub-clause shall be substituted for sub-clause (a):

(a) To the extent practicable, specifics of the carried forward loss or depreciation allowance, as follows:

audit forms

*Take the assessed depreciation if the assessed depreciation is less and there is no appeal pending.

To be completed only for the evaluation year 2021-2022.”

Clause 36 is to be omitted.

Note: The principal rules were first published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) on March 26, 1962, and were last amended on March 31, 2021, by notification number G.S.R. 242 (E).

[Notification No. 28 /2021/F. No 370142/9/2018-TPL]
ANKIT JAIN, Under Secy. (Tax Policy Legislation)

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Guide to File GSTR-8 on GST Portal

Any e-commerce operator that must collect taxes at the source (TCS) for all supplies subject to taxes made through it, must submit the GSTR 8. The details of such supplies subject to taxes and the tax levied at the source by The e-commerce operator must be informed on the GSTR-8 form. The return on Form GSTR-8 must be submitted on the GST Portal before the 10th of the following month.

Here is the step-by-step guide to filing GSTR-8 on GST portal :

GSTR-8

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GST Annual return and Audit

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9 Questions on GST Annual return and Audit

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_tta_accordion style=”modern” spacing=”3″ gap=”3″ c_icon=”triangle” active_section=”0″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”What are the legal provisions for the annual declaration and the GST audit?” tab_id=”1544163577148-5adeb363-b93e”][vc_column_text]The legal requirement to present the annual declaration hereinafter referred to as GSTR-9 is governed by section 35 (5) and section 44 (1) of the CGST Act. Section 44 (1) of the CGST Act, read with Rule 80 (1) of the CGST Rules, requires that each registered person who is not

  • an Input Service Distributor,
  • a person paying tax under section 51 (TDS) or section 52 (TCS),
  • a casual taxable person and
  • a non-resident taxable person,

You must file an annual return for each financial year in electronic form on Form GSTR-9 on or before December 31 following the end of that financial year. In addition, according to section 35 (5) of the CGST Act, any registered person whose turnover during a fiscal year exceeds the prescribed limit (Rs. 2 cr.) Will have their accounts audited by an authorized accountant or accountant. costs and submit a copy of the audited annual accounts, the conciliation status (GSTR-9C) under subsection (2) of section 44 and any other document in the form and manner prescribed. Reconciliation statement: GSTR-9C is a reconciliation of data according to the account and data books as reported in GSTR-9[/vc_column_text][/vc_tta_section][vc_tta_section title=”Whether transactions for the period April-17 to June-17 are also to be included in GSTR-9 for FY 2017-18? ” tab_id=”1544163577149-0250a3a2-88ca”][vc_column_text]No, the instructions that are part of the GSTR-9, which were notified by Notification No. 39/2018 dated September 4, 2018, clearly mention that only the details of the period from July 2017 to March 2018 will be provided. in the GSTR-9.[/vc_column_text][/vc_tta_section][vc_tta_section title=”If a Taxpayer has obtained more than one GST Registration even though he has a single PAN, then whether GSTR-9 is to be filed at Entity level or GSTIN wise? ” tab_id=”1544163805488-fa91ac3c-9c53″][vc_column_text]In accordance with the statutory provision of Section 44 (1) of the CGST Act, each registered person must submit the GSTR-9. Therefore, if a Taxpayer has obtained multiple GST Registrations, either in one state or in more than one state, it will be treated as a separate person with respect to each such record according to section 25 (4) of the CGST Law Therefore, it is required that GSTR-9 be presented separately for each GSTIN.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What is the difference between GSTR-9 and GSTR-9C? ” tab_id=”1544163874446-e1054f17-3295″][vc_column_text]In accordance with section 35 (5) of the CGST Act, any registered person whose turnover during the financial year exceeds the prescribed limit (Rs.2 cr.) Must obtain their audited accounts by an authorized accountant or a cost accountant and must present a copy of the audited annual accounts, the conciliation declaration under subsection (2) of section 44 that is called GSTR-9C and any other document in the form and form prescribed. Therefore, the GST Audit u / s 35 (5) requirement would arise only if the prescribed rotation limit exceeds Rs. 2 cr. and the certified conciliation statement -GSTR-9C must be presented. On the other hand, GSTR-9 is an annual declaration that must be presented by each registered person, regardless of the volume limit of business.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Whether Turnover of 2 Cr. For GST Audit would be for 9 months or Full Financial year? ” tab_id=”1544163936103-ada7c347-11d6″][vc_column_text]For fiscal year 2017-18, the GST period comprises 9 months, while the relevant section 35 (5) uses the term Financial year; Therefore, in the absence of clarification by the government, also to avoid any case of non-compliance, it is reasonable to understand that the rotation limits prescribed for the audit are taken into account, ie 2 Cr. One has to calculate the volume of the entire financial year, which would include the first quarter of the 2017-18 fiscal year.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What will be source of information for filling up GSTR-9? ” tab_id=”1544164017208-b504d6e4-8b64″][vc_column_text]GSTR-9 is simply a compilation of archived data in GSTR-3B and GSTR-1. According to the instructions in the GSTR-9 form, it is stated that the information of the outgoing supplies “may” be derived from the GSTR Form 1. Therefore, with regard to outgoing supplies and taxes payable in the annual return , the same is to be extracted from the GSTR 1 Form only. The entry supplies, the entry tax credit and the net tax paid in cash must be obtained from the GSTR 3B Form. But before presenting GSTR-9, the value according to GSTR-3B and GSTR-1 must be aligned. If there is a difference, then it must be adjusted to the subsequent declarations submitted until September 18 according to circular 26/26/2017-GST dated December 29, 2017.

 

It seems that the inherent assumption that was made when drafting the Form is that the GSTR Form 3B and the GSTR Form 1 are in tune with each other, which may not always be true. In the event that the values according to the Form GSTR 3B and GSTR 1 do not coincide with each other, a differential value of the tax payable and the tax paid according to the annual declaration can be reached. You can expect clarification from the government regarding the form of payment of any additional liability (if applicable). However, if faced with a situation of this type, the additional tax liability can be paid through Form GSTR 3B of the subsequent month / Form DRC-03.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Whether GSTR-9 can be revised? ” tab_id=”1544164082474-26fd2abb-4490″][vc_column_text]No such option has been provided in the law till now.[/vc_column_text][/vc_tta_section][vc_tta_section title=”How much late fee is payable for late filing of GSTR-9? ” tab_id=”1544164127070-e1c72729-d383″][vc_column_text]According to section 47 (2) of the CGST Act, the late fee for the late filing of GSTR-9 is Rs.100 per day, subject to a maximum of 0.25% of the billing in a state / UT. A similar provision is also there in the SGST Law. Therefore, in total there will be a surcharge of Rs.200 per day subject to 0.50% of the turnover in a statement on the late submission of GSTR-9.[/vc_column_text][/vc_tta_section][vc_tta_section title=”What are the consequences of the failure to file GSTR-9? ” tab_id=”1544164225175-ebcab7ee-ada2″][vc_column_text]If one fails to file GSTR-9 then first late fees will be payable as discussed above. A notice may be issued u/s 46 requiring him to furnish such return within stipulated time.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][/vc_row]