Books of Accounts
1. Clause 9 (b) and (c)- Books of Accounts Maintained and Examined – Generally printed list.
2. Clause 14- Particulars of Depreciation allowable –Details of Purchase, Sale, Transfer and Disposal/ Write-off of Fixed Assets to be verified by Branch Auditor.- Depreciation calculation – generally at HO.
3. Clause 17(a)– Any amount of Capital Expenditure debited to Profit and Loss A/c.
4. Clause 17(e)– Expenditure by way of Penalty or Fine for violation of any law debited to Profit and Loss A/c.
NRI & Related Clauses
5. Clause 17(f)– Any amount inadmissible u/s 40(a):
(a) Amount inadmissible u/s 40(a)(i):
~ Any interest paid to a Non-Resident person or to a Foreign Company without TDS.
(b) Amount inadmissible u/s 40(a)(i)(a):
~Any interest, commission, brokerage, fees for Professional/ Technical Services or Contract Amount paid to a Resident person without TDS.
(c) Amount inadmissible u/s 40(a)(i)(a):
~ Any tax, interest or penalty under Income Tax Act or Wealth Tax Act debited to P&L A/c.
6. Clause 17(h)– Section 40A(3) read with Rule 6DD:
Whether any amount is inadmissible u/s 40A (3) read with Rule 6DD – relating to disallowance of any expenditure paid otherwise than by A/c. Payee Cheque?
– Obtain a Certificate from the Branch Management relating to payments covered u/s 40A(3).
PF & TDS
7. Clause 21- Bank’s Contribution and Employees’Contribution to Provident Fund– Annexure details to be verified. Particulars of Income/ Expenditure of Prior Period credited or Debited to the Profit and Loss A/c. of the Current Year
8. Clause 27- Compliance of TDS provisions: – Verify TDS compliance under all relevant sections like Salary, Interest, Interest to NRI, Contract Payments, Technical & Professional Fees etc.
Provide Details of :
(a) Tax Deductible but not deducted at all.
(b) The shortfall on account of lesser TDS than required.
(c) Tax Deducted late
(d) Tax Deducted but not paid to the Central government