CBDT Notification No.
33/2018 dated July 20, 2018
Clause 4
Amendment to Rules,
Form 3CB, Applicable from 20th August, 2018.
(i) in serial number 4,-
(a) after the words
“sales tax,”, the words “goods and services tax,” shall be inserted;
(b) after the words
“registration number or”, the words “GST number or” shall be inserted;
¡In addition to other indirect taxes, to report
whether the assessee is liable to pay GST
¡Even if liability
under RCM, state so
¡To report all GST
registration No./Nos. of the assessee
Clause 19
(ii)
in serial number 19, in the table, after the row with entry “32AC”, the row
with entry “32AD” shall be inserted;
Addition in Reportiing
¡To report amount
debited to profit and loss account w.r.t. acquisition and installation of new plant and
machinery
¡To report amount admissible u/s. 32AD
¡Amounts allowable as deduction u/s. 32AD
¡Compliances with conditions of section 32AD to be
verified
¡Assessee sets up an
undertaking or enterprise
¡In notified backward area (Andhra Pradesh, Bihar, Telangana, West Bengal) for
manufacture or production of any article or thing During period 01 04 2015 to
31 03 2020
¡Acquires and installs in the said notified backward area :
new plant or machinery within the meaning assigned in 32AD(4)
15%
deduction in the year of installation
Clause 24
(iv) in serial number 26, for the words “or (f)”, the words
“, (f) or (g)” shall be substituted;
Added requirement in
existing clause 26 :
¡To report: Amount deemed to be profits and gains under
section 32AD
¡To report only when
default provisions of section 32AD attracted
¡Section 32AD(2)
provides the default provisions
¡Default: Sale or transfer of new plant or machinery within 5
years from date of installation
¡Deduction earlier allowed deemed as business income in the
year of default
¡Tax auditor to report such income
¡Resultant capital gains, if any, not to be reported here
¡Check whether new
asset acquired and installed in notified area, on which deduction u/s. 32AD was
claimed, has been sold/ otherwise transferred in 5 years
¡ Within 5 years
from date of installation
¡ In the year of sale/otherwise transfer, the deduction
earlier allowed is business income
¡ In addition to chargeability of capital gains, if any
but capital gains not to report here
¡Exceptions: Amalgamations, demergers, reorganisations;
ref. Sec. 47 Clause (xiii), (xiiib)or (xiv)
Clause 26
(iv)
in serial number 26, for the words “or (f)”, the words “, (f) or (g)” shall be
substituted;
¡Addition in
reporting w.r.t. section 43B which
allows deduction of taxes, duties, cess, fees, in
respects of such liabilities incurred and paid during the previous year or
on or before due date of furnishing return of income
¡Now by this amendment
added :
¡Sum payable to Indian Railways for use of railway assets
¡Use will not include freight, transportation
¡Use refers to hiring
of assets
¡Ratio of relevant judgement on use vs. hire can be relied
upon
¡Payments to put up hoardings on railway premises will depend
upon terms of contract whether use of space or advertisement service
¡Obtain list of payments to railways and bifurcate according
to nature of payments
•To report: Liability
pre-existed on the first day of the previous year but was not allowed in the
assessment of any preceding previous year and was
a)paid during the previous year;
b)not paid during the previous year;
•(B) was incurred in
the previous year and was
a)paid on or before the due date for furnishing the return
of income of the previous year under section 139(1);
b)not paid on or before the aforesaid date Clause 29A
¡Clause Applicable in
the previous year of forfeiture of advance or otherwise received in the course
of negotiations for transfer of a capital asset
¡Sum is forfeited and capital asset is not transferred
¡Forfeiture has to be in previous year of amount received in
previous year or earlier
¡ To verify
transactions of immovable property where some token, part payment received and
capital asset not transferred
¡ To verify cases
of write backs, whether forfeiture
¡Long o/s advance may give rise to enquiry but is not
forfeiture
¡Forfeiture is a conscious act
¡Only forfeiture of capital asset here
¡Forfeiture of advance against sale of stock in trade will be
a subject matter of section 41(1)
¡Only the transactions
of business or profession under tax audit as recorded in books of accounts
¡Many times
transactions in capital assets are not a part of business, not to report
Clause 29B
(a) Whether any amount is to be
included as income chargeable under the head 'income from other sources' as
referred to in clause (x) of sub-section (2) of section 56? (Yes/No)
(b) If yes, please furnish the
following details:
(i)
Nature of income:
(ii) Amount
(in Rs.) thereof:
¡U/s.56(2)(x) various
receipts without consideration are an income from other sources
¡Sum
of money
in aggregate exceeding Rs.50,000/- :
¡Whole of receipt is income
¡•Property
or properties other than immovable
property :
•Without
consideration -
•Aggregate
FMV exceeds Rs. 50,000/- : FMV is the income
•With
consideration -
•Aggregate
FMV exceeds aggregate of consideration by more than Rs.50,000: difference
between FMV and the consideration is the income
•Property,
whether immovable or other to be capital asset of the assessee
¡other than immovable properties :
¡(ii)shares and securities;
¡(iii) jewellery;
¡(iv) archaeological collections; (v) drawings;
¡(vi) paintings;
¡(vii) sculptures;
¡(viii) any work of art; or
¡ (ix) bullion;
Clause 30A
¡vi)
after serial number 30 and the entries relating thereto, the following shall be
inserted, namely:-
¡30A.
¡ (a) Whether primary adjustment to transfer price, as
referred to in sub-section (1) of section 92CE, has been made during the
previous year? (Yes/No)
¡ (b) If yes, please furnish the following details:—
¡ (i)
Under which clause of sub-section (1) of section 92CE primary adjustment
is made?
¡ (ii)
Amount (in Rs.) of primary adjustment:
¡ (iii)
Whether the excess money available with the associated enterprise is required
to be repatriated to India as per the provisions
of sub-section (2) of section 92CE? (Yes/No)
¡ (iv)
If yes, whether the excess money has been repatriated within the prescribed
time (Yes/No)
¡ (v)
If no, the amount (in Rs.) of imputed interest income on such excess money
which has not been repatriated within the prescribed time:
¡In the following
circumstances the clause will be applicable and then the above particulars to
be reported
¡Primary adjustment (determination of TP based on arm’s
length principle ) exceeding Rs. 1 crore
¡So motu by assessee, by AO and
accepted by assessee, determined by an advance pricing agreement, made as per
the safe harbour rules, assessment by way of the mutual agreement procedure
¡Tax auditor to report
whether primary adjustment for A. Y. 2017-18 exceeds Rs. 1 crore, to verify
secondary adjustment and in case of non patriation within prescribed time,
imputed interest as per Rule 10CB
¡Note: This item relates to International
Transactions for which separate Tax Audit Report u/s 92E is required to be
submitted in Form 3CEB. It is not understood as to why this information is
included in Form 3CD instead of Form 3CEB
Clause 30B
¡(a)
Whether the assessee has incurred expenditure during the
previous year by way of interest or of similar nature exceeding one crore
rupees as referred to in sub-section (1) of section 94B? (Yes/No)
¡(b)
If yes, please furnish the following details:-
¡ (i)Amount
(in Rs.) of expenditure by way of interest or of similar nature incurred:
¡(ii)Earnings
before interest, tax, depreciation and amortization (EBITDA) during the previous year (in Rs.):
¡(iii)Amount
(in Rs.) of expenditure by way of interest or of similar nature as per (i)
above which exceeds 30% of EBITDA as per (ii) above:
¡(iv)
Details of interest expenditure brought forward as per sub-section (4) of
section 94B:
¡(v)
Details of interest expenditure carried forward as per sub-section (4) of
section 94B:
Clause 30C
¡(a)
Whether the assessee has entered into an impermissible
avoidance arrangement, as referred to in section 96, during the previous year?
(Yes/No)
¡ (b)
If yes, please specify:-
¡Nature
of the impermissible avoidance arrangement:
¡Amount
(in Rs.) of tax benefit in the previous year arising, in aggregate, to all the
parties to the arrangement
Clause 31
¡ (bb)
Particulars of each receipt in an amount exceeding the limit specified in
section 269ST, in aggregate from a person in a day or in respect of a single
transaction or in respect of transactions relating to one event or occasion
from a person, received by a cheque or bank draft, not being an account payee
cheque or an account payee bank draft, during the previous year:—
¡ (i) Name, address and Permanent Account Number (if available
with the assessee) of the payer;
¡(ii) Amount of receipt (in Rs.);
¡(bc)
Particulars of each payment made in an amount exceeding the limit specified in
section 269ST, in aggregate to a person in a day or in respect of a single
transaction or in respect of transactions relating to one event or occasion to
a person, otherwise than by a cheque or bank draft or use of electronic
clearing system through a bank account during the previous year:-
¡ (i) Name, address and Permanent Account Number (if available
with the assessee) of the payee;
¡(ii) Nature of transaction;
¡(iii) Amount of payment (in Rs.);
¡(iv) Date of payment;
¡bd)
Particulars of each payment in an amount exceeding the limit specified in
section 269ST, in aggregate to a person in a day or in respect of a single
transaction or in respect of transactions relating to one event or occasion to
a person, made by a cheque or bank draft, not being an account payee cheque or
an account payee bank draft, during the previous year:—
¡(i) Name, address and
Permanent Account Number (if available with the assessee) of the payee;
¡(ii) Amount of payment (in Rs.);
(bd) Particulars of each payment in an amount exceeding the
limit specified in section 269ST, in aggregate to a person in a day or in
respect of a single transaction or in respect of transactions relating to one
event or occasion to a person, made by a cheque or bank draft, not being an
account payee cheque or an account payee bank draft, during the previous year:—
(i) Name, address and Permanent Account Number (if available
with the assessee) of the payee;
(ii) Amount of payment (in Rs.);
Clause 34
(viii) in serial number 34, for item (b), the
following item shall be substituted, namely:-
“(b) whether the assessee is required to
furnish the statement of tax deducted or tax collected. If yes, please furnish
the details:
•Now, irrespective of
whether statement of TDS, TCS filed in
time or not, tax auditor required to report whether statement of TDS, TCS
contains all transactions attracting TDS, TCS
•If not, furnish list of details/transactions not reported
•Tax auditor will need
to verify accounts w.r.t. applicability of
TDS, TCS
¡The new requirement
of transaction not reported is casting a huge responsibility upon the tax
auditor
Clause 36A
(ix) after serial number 36 and the
entries relating thereto, the following shall be inserted, namely:-
“36A. (a) Whether the assessee has
received any amount in the nature of dividend
as referred to in sub-clause (e) of`clause
(22) of section 2? (Yes/No)
(b) If yes, please furnish the
following details:-
(i) Amount received (in Rs.):
(ii) Date of receipt:”
¡Auditor required to
express opinion as to whether dividend u/s. 2(22)(e) received and if so date
and amount
¡Very onerous task considering the litigations around the subject
¡Substantial details may not be available in the books of
account of the assessed
¡To obtain list of
companies wherein assessee is a shareholder
owning 10% or more of voting power
¡To obtain list of
concerns wherein the assessed has substantial interest
¡To take into account
and consider whether TDS by paying company
¡Remuneration to
shareholder director, trade advances,
advances in course of normal business or commercial transactions, not covered.
Also confirmed in
¡Circular No. 19/2017
(F.No.279IMisc.l140/2015I1TJ) dated 12 June 2017
¡Since most reporting
will be based on details outside assessee’s books, so appropriate remarks in 3CA or 3CB
¡Section 115-O amended
by the Finance Act, 2018, provides that the closely held company giving
such advance or loan to a related party as specified in Section 2(22)(e), on or
after 1/4/2018, will have to pay tax at the rate of 30% plus applicable surcharge
and cess
¡Clause 36A will apply
for tax audit for A.Y. 2018-19 only
Clause 42
(x)
after serial number 41 and the entries relating thereto, the following shall be
inserted, namely:-
(a)
Whether the assessee is required to furnish statement in
Form No.61 or Form No. 61A or Form No. 61B? (Yes/No)
(b)
If yes, please furnish:
¡Under this item, if
the assessee is required to file
Forms 61, 61A or 61B with appropriate authorities, the above particulars
relating to the same will have to be furnished
¡Section 139A(5)(c) r.w. Rule 114B :
mandatory to quote pan in all documents in respect of prescribed transactions.
¡If no PAN, then Form
No. 60
¡Rule 114D : Form no.
114D : to file form no. 61 by specified persons who have received form no. 60.
¡Form 61 : for
declarations received till 30th Sept., by 31st
Oct., for declarations received by 31st March, by 30th
April.
¡Tax auditor to verify
whether assessee entered into
transactions where PAN was to be quoted by other party, whether PAN quoted, if
not then whether form 60 received, whether form 61 filed.
¡Form No. 61A :
section 285BA r.w. rule 114E :
¡To be filed by assessee,
specified/prescribed persons required to furnish a statement in respect of SFTs
or reportable account.
¡To be filed on or
before 31st May for the preceding financial year
Clause 43
(a)
Whether the assessee or its parent entity or alternate
reporting entity is liable to furnish the report as referred to in sub-section
(2) of section 286 (Yes/No)
(b)
if yes, please furnish the following details:
(i) Whether report has been furnished by the assessee or
its parent entity or an alternate reporting entity
(ii) Name of parent entity
(iii) Name of alternate reporting entity (if applicable)
(iv) Date of furnishing of report
CBC
-Country by country reporting:
¡The above particulars
have to be furnished in respect of International Group under section 286 by
every parent company or alternate reporting entity resident in India, if it is
constituent of such International group.
¡ The report is
to be furnished within a period of 12 months from the end of the reporting
period.
¡If March, 2018
submitted, then report the same
¡Else, to make
workable, furnish for March, 2017
¡ Threshold :
only if the consolidated revenue exceeds Rs. 5500 crores
Clause 44
Break-up
of total expenditure of entities registered or not registered under the GST:
¡Clause 44 requires
reporting of break-up of expenditure w.r.t. GST.
¡Two broad categories
: expenditure from registered vendors, un-registered vendors
¡In respect of
expenditure from registered vendors : further break-up into expenditure exempt
from GST, expenditure from vendors under composition scheme, expenditure from
other registered entities
¡The basis and break
up should be of audited financial statements
¡From GST angle break
up of revenue expenditure as well as of capital nature
¡All assessees covered by this
clause including those not registered in GST
¡GST operative from 1st
July,2017 in J & K from 8th
July, 2017
¡So break up of
financial statements into 3 month and 9 months would be necessary
¡Heads in financial
statements may be continued except when change required from GST point of view
For e.g. cost of sale may be decomposed to write only purchases
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