ICAI representation to CBDT to defer revised Form-3CD by one year to AY 2019-20
CBDT vide Notification No. 33/2018, dated 20th July, 2018 has revised the Form 3CD by adding various new clauses/sub clauses making major amendments and some additional disclosures are to be reported. The new format of Form 3CD is applicable to audit reports issued on or after 20th August, 2018.
The Direct Tax Committee (DTC) of the ICAI in its representation to CBDT has requested that new Form 3CD be implemented from the Assessment Year 2019-20. One of the reasons put in support of the deferment of the new format is that DTC will have to revise its ‘Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961’ with regard to the changes made for providing guidance to members.
In this regard, the DTC has raised the following issues:
1. Reliance has been placed upon the judgment of the Delhi High Court wherein the Hon’ble Court had directed the CBDT/Govcmmcnt to make available the Forms for audit report and ITRs by 1st April of the Assessment Year.
The Hon’ble High Court had held as under:
Accordingly, though not granting any relief to the petitioner for the current assessment year, the respondents are directed to, with effect from the next assessment year, at least ensure that the forms etc. which are to be prescribed for the Audit Report and for filing the ITR are available as on 1st April of the assessment year unless there is a valid reason therefor and which should be recorded in writing by the respondents themselves, without waiting for any representations to be made. The respondents, while doing so, to also take a decision whether owing thereto any extension of the due date is required to be prescribed and accordingly notify the public.
2. It has been stated that as the new format will be applicable for report issued on or after 20th August, 2018, it will cause discrimination. Also for many audit started well before the cut off date, it would not be possible for them to complete it before the cut off date.
3. It has been submitted that many revised clauses require CA to sit in the chair of AO and pass value judgment. The role of the CA should be to assist the AO in verifying particulars only.
4. The apprehension on the following clauses has been raised with suggestions of modification/reconsideration:
Clause 29A
Clause 29B
Clause 30A
Clause 30B
Clause 30C
Clause 34(b)
Clause 36A
Clause 42
Clause 43
Clause 44 – GST related information. It has been suggested that the clause should ideally be covered under GST audit
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