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How to make Form 3 CB for Tax Audit in A.Y. 2014-15

Updated on May 16, 2014
Source
 
FORM NO. 3CD
 
 
[See rule on 6G(2) ]
 
 
 
 
 
Statement of Particulars required to be furnished under section 44AB of the Income Tax Act,1961
 
 
PART - A
 
1
Name of the Assessee
 
2
Address
 
3
Permanent Account Number
 
4
Status
 
5
Previous year ended
 
6
Assessment year
 
PART - B
 
 
7
(a)
If firm or Association of Persons,indicate names of partners /members and their profit sharing ratios.
 
(b)
If there is any change in the partners / members or their sharing ratios, the particulars of such change.
8
(a)
Nature of business or profession.
 
(b)
If there is any change in the nature of business or profession, the particulars of such change.
9
(a)
Whether books of accounts are prescribed under section 44AA, if yes, list of books so prescribed.
 
(b)
Books of account maintained (In case books of account are maintained in a computer system mention the books of account generated by such computer by such computer system.)
 
(c)
List of books of account examined.
10
 
Whether the profit and loss account includes any profits and gains assessable on presumptive basis, if yes, indicate the amount and the relevant section (44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB or any other relevant section) .
 
 
 
11
(a)
Method of accounting employed in the previous year.
 
(b)
Whether there has been any change in the method of accounting employed vis-a-vis the method employed in the immediately preceding previous year.
 
(c)
If answer to(b) above is In the affirmative, give details of such change ,and the effect thereof on the profit or loss.
 
(d)
Details of deviation, if any, in the method of accounting employed in the previous year form the accounting standards precribed under section 145 and the effect thereof on the profit or loss.
12
(a)
Method of valution of closing stock employed in the previous year.
 
(b)
Details of deviation, if any, from the method of valution precribed under section 145 A, and the effect thereof on the profit or loss.
13
 
Amounts not credited to the profit and loss account, being, -
 
(a)
the items falling within the scope of section 28;
 
(b)
the proforma credits,drawbacks, refunds of duty of customs or excise, or refunds of sales tax,where such credits, drawbacks or refunds are admitted as due by the authorities concerned;
 
(c)
escalation claims accepted during the previous year;
 
(d)
any other item of income;
 
 
 
 
(e)
capital receipt, if any.
14
 
Particulars of depreciation allowable as per the Income Tax Act,1961 in respect of each asset or block of assets, as the case may be, in the following form:-
 
(a)
Description of asset/block of assets.
 
 
 
 
(b)
Rate of deprectiaion.
 
 
 
 
(c)
Actual cost or written down value, as the case may be.
 
(d)
Addition/deductions during the years with dates; in the case of any addition of an asset, date put to use ; including adjustments on account of -
 
(i)
Modified Value Added Tax credit claimed and and allowed under the Central Excies Rules,1944 in respect of assets acquired on or after 1st March,1944,
 
(ii)
change in the rate of exchange of currency, and
 
(iii)
subsidy or grant or reimbursement, by whatever name called .
 
(e)
Deprectiaion allowable
 
 
 
 
(f)
Written down value at the end of the year.
15
 
Amount admissible under section 33AB, 33ABA, 33AC. 35, 35ABB, 35AC, 35CCA, 35CCB, 35D, 35E:-
 
(a)
debited to the profit and loss account (showing the amunt debited and deduction allowable under each section seperately);
 
(b)
Not debited to profit and loss account.
 
 
 
16
(a)
Any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend. [section 36(1)(ii)]
 
(b)
Any sum received from the employees towards contributions to any provident fund or superannuation fund or any other fund mentioned in section 2(24)(x); and due date for payment and the actual date of payment to the concerned authorities under section 36(1)(va).
17
 
Amount debited to the profit and loss account, being:-
 
(a)
expenditure of capital nature;
 
 
 
 
(b)
expenditure of personal nature;
 
 
 
 
(c)
expenditure on advertisement in any sovenir, brochure, tract, pamphlet or the like, published by a political party;
 
(d)
expenditure incurred at club,-
 
 
 
 
(i)
as enterance fees and subscriptions;
 
 
 
 
(ii)
as cost for club services and facilities used;
 
(e)(i)
expenditure by way of penalty or fine for violation of any law for the time being in force;
 
(ii)
any other penalty or fine;
 
 
 
 
(iii)
expenditure incurred for any purpose which is an offence or which is prohibited by law;
 
(f)
amounts inasmissible under section 40(a);
 
(g)
interest,salary,bonus,commission or remuneration inadmissible under section 40(b)/40(ba) and computation thereof;
 
(h)
amount inadmissible under section 40A(3) read with rule 6DD and computation thereof;
 
(i)
provision for payment of gratiuity not allowable under section 40A(7);
 
(j)
any sum paid by the assessee as an employer not allowable under section 40(9);
 
(k)
particulars of any liability of a contingent nature.
17A
 
Amount of interest inadmissible under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006
18
 
Particulars of any payment made to persons specified under section 40A(2)(b).
19
 
Amounts deemed to be profits and gains under section 33AB or 33AC or 33ABA.
20
 
Any amounts of profits chargeable to tax under section 41 and computation thereof
Source
 
 
 
21
I
In respect of any sum referred to in clause (a),(c),(d) or (e) of section 43B the liability for which:-
 
(A)
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 furmishing the return of income of the previous year 139(1)(a);
 
(b)
not paid on or before the afforesaid date.
 
II
In respect of any sum referred to in clause (b) of section 43B, the liability for which-
 
(A)
Pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year :-
 
(a)
Nature of liability;
 
(b)
due date of payment under second provision to section 43B;
 
(c)
actual date of payment;
 
(d)
if paid otherwise than in cash,whether the sum has been realised within fifteen days of the aforesaid due date;
 
(B)
was incurred in the previous year
 
(a)
nature or liability;
 
(b)
due date of payment under second provision to section
 
(c)
actual date of payment
 
(d)
if paid otherwise than in cash,whether the sum has been realised within fifteen days of the aforesaid due date;
 
 
* state whether sales tax, customs duty,excise duty or any ther indirect tax,levy,cess,impost etc.is passed through the profits and loss account
22
(a)
Amount of Modified Value Added Tax Credits availed of or utilised during the previous year and its treatment in profit and loss account and tratment of outstanding Modified Value Added Tax Credits in accounts,
 
(b)
Particualrs of income or expenditure of prior preiod credited or debited to the profit and loss account.
23
 
Details of any amount borrowed on hundi or any amount due thereon (including interest on the amount borrowed) repaid,otherwise than through an account payee cheque,(Section 69D)
24
(a)
* particulars of each loan or deposite in an amount exceeding the limit specified in section 269SS thaken or accepted during the previous year :-
 
i)
name,Address and permenent account number (if available with the assessee) of the lender or depositor;
 
ii)
Amount of loan of deposit taken Accepted;
 
iii)
Whether the loan or deposit was squared up during the previous year;
 
iv)
Maximum amount outstanding in the account ay any time during the previous year;
 
v)
Whether the loan or deposit was taken or accepted otherwise than by an account payee Bank cheque or account payee bank draft
 
 
*(These particulars need not be given in case of a Government Company, a banking company or a corporation established by a Central,State or Provincial Act.)
 
(b)
Particualrs of each repayment of loan or deposit in an amount exceeding the limit specified in section 269T made during the previous year :-
 
i)
name,address and permanent account number (if available with the assessee) of the payee;
 
ii)
Amount of the repayment;
 
iii)
Maximum amount outstanding in the account at any time during the previous year;
 
iv)
Whether the repayment was made otherwise than by account payee cheque or account payee bank draft.
26
 
Section-wise details of deductions, if any admissible under Chapter VIA.
27
(a)
Whether the ssessee has deducted tax at source and paid the amount so deducted to the credit of the Central Government in accordance with the provisons of Chapter XVII-B.
28
(a)
In thecase of a trading concern, give quatitative details of prinicipal items of goods traded;
 
i)
opening stock;
 
ii)
purchases during the previous year;
 
iii)
sales during the previous year;
 
iv)
closing stock;
 
v)
shortage/excess, if any.
 
(b)
In the case of manufacturing concern,give quntitative details of the pinicipal items of raw materials, finished products any by-products.
 
(A)
Raw materials;
 
i)
opening Stock;
 
ii)
purchases during the previous year;
 
iii)
consumption during the previous year;
 
iv)
sales during the previous year;
 
v)
closing stock;
 
vi)
* yield of finished products;
 
vii)
* percentage of yield;
 
viii)
* shortage/excess, if any;
 
(B)
Finished products / By products :
 
I)
opening stock;
 
ii)
purchases during the previous year;
 
iii)
quantiry manufactured during the previous year;
 
iv)
sales during the previous year;
 
v)
closing stock;
 
vi)
shortage/excess, if any.
 
 
* Information may be given to the extent available.
29
 
In the case of Domestic Company,details of tax on distributed profits under section 115-O in the following forms :-
 
(a)
total amount of distributed profits;
 
(b)
total tax paid thereon;
 
(c)
dates of payment with amounts.
30
 
Whether any cost audit was carreid out, if yes, enclose a copy of the report of such audit [See Section 139(9)].
31
 
Whether any audit was conducted under the Central Excise Act, 1944, if yes, enclose a copy of the report of such audit.
32
 
Accounting ratios with calculations as follows :-
 
(a)
Gross profit/Turnover;
 
(b)
Net profit/Turnover;
 
(c)
Stock-in-Trade/Turnover;
 
(d)
Material consumed/Finished goods produced.
 
 
 
 
 
 
Source

A Lecture by Former Indian Income Tax Commissioner-

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