The Central Board of Direct Taxes (CBDT) postponed the Tax Audit Clause 30C and 44 till 31st Mar 2022 due to COVID-19. The CBDT has lengthened the due date for filing Form 3CD. In this article, we will discuss on CBDT Defers GST & GAAR reporting till 31.03.2022.
CBDT Defers GST & GAAR reporting till 31.03.2022
The CBDT vide Circular numbers 06/2018, 09/2019 and 10/2020 had postponed the reporting of elements under clause 30C (pertaining to GAAR) & clause 44 (pertaining to GST) of Form 3CD numerous times. In the perspective of the prevailing situation due to the COVID-19 pandemic across the country, the board has determined that the reporting under clauses 30C & 44 of the tax audit report shall be maintained in abeyance till March 31, 2022.
Section 44AB of the Income-tax Act, 1961 examine with rule 6G of the Income-tax Rules, 1962 requires specified persons to provide the Tax Audit Report along with the prescribed details in Form No. 3CD. The prevailing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July 2018 with impact from 20th August 2018.
Tax Auditors of a specific category of Assessees shall file Form 3CD in the prescribed format. Now, the companies that are not subjected to tax audits are required to provide GST details. The Central Government, on 20th July, has modified Form No. 3CD and enlarged the breadth of tax audit cases.
What is Form No 3CD?
Form 3CD is considered as a Form Rule 6G(2) and Section 44AB of the Indian Income Tax Act, 1961. The Form is a portion of the process of ITR Filing in India and is an Annexure to the Audit Report. Form 3CD contains 32 Clauses. It is compelled to be attached with Forms 3CA or 3CB, as applicable.
Further Notification by Central Government
Regardless, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in suspension till 31 March, 2019 vide Circular No. 6/2018 dated August 17, 2018, which was thereafter broadened to 31 March, 2020 vide Circular No. 9/2019. Vide circular no. 10/2020 dated April 24, 2020, it was further extended to 31st March 2021.
Business materials having a turnover of additional than ₹1 crore (or ₹2 crore if they have opted for presumptive taxation) and professionals with entire receipts of more than ₹50 lakh have to comply with the tax audit regulations.
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