Clause

• All tax audit reports signed on or after 10^th August,2006 whether in respect of A.Y. 2006-07 or the earlier assessment years should be in the revised format.

• The relevant date is the date of signing of the tax audit report and not the financial year in respect of which such audit report is furnished.

• The tax auditor need not submit the revised audit report furnishing the particulars in the revised Form No.3CD where he furnished the audit report prior to 10^th August 2006 in the earlier Form No.3CD.

• All the changes occurring during the entire previous year must the stated.

• Information provided under this clause should be in consonance with the information provided in Part B of Annexure -I.

• For furnishing the particulars required by clause 12A, the provisions of Section 2 (47), 45(2),47(iv) and(v) and 47 A have to be kept in mind.

• The clause does not require details regarding the taxability of capital gains or business income arising from such deemed transfer.

• The cost of acquisition as per the books of account is to be mentioned.

• Even in case of an asset acquired prior to the 1^st day of April,1981 the value to be reported will be the original cost of acquisition.

• It is desirable that necessary accounting entry is passed in the books of account at the time of conversion of the asset into or treatment of the same as stock-in-trade.

• Two items included by the amendment in sub-clause (b) of clause 13 are refund of service-tax and refund of value added tax.

• This is an amendment to the existing clause 15. References to section 35DD being amortisation of expenditure in case of amalgamation or de-merger and section 35DDA being amortisation of expenditure incurred under voluntary retirement scheme have been added by the amendment.

• For the purpose of computing the inadmissible amount under section 40(a)(ia) for the assessment year 2006-07 rent will have same meaning as per explanation (1) under section 194-I prior to its substitution by the Taxation Laws (Amendment) Act, 2006.

• The amended provisions of section 40A(3) are not applicable for the A.Y. 2006-07.

• So far as A.Y. 2006-07 is concerned the tax auditor may state that clause (A) is not applicable.

• The tax auditor has to verify the details furnished by the assessee and should satisfy himself that the inadmissible amounts have been worked out correctly.

• The tax auditor has to verify the correctness of the particulars furnished by the assessee with the documentary evidence.

• It may be noted that the effect of the amendment to the said clause is only for the amount of employer's contribution and the employees contribution would still be governed by the provisions of section 2(24(x) read with section 36(1)(va) and as such the information required to be provided in respect of employees contribution under clause 16(b) of Form No.3CD shall continue to be on the basis of due date under the relevant law.

• The tax auditor should advise the assessee to include necessary evidence of payments made after the signing of the tax audit report but before the due date of filing. (Refer Circular No.601 dt. 4.6.91 vide Appendix XVII).

• The particulars under this clause are required irrespective of the fact whether they have been debited to profit and loss account or not and such a fact should be stated under this clause.
• The tax auditor is not required to determine any admissible or inadmissible amount(s).

• The mere obtaining of such certificate from the assessee does not reduce the scope of the responsibility of the tax auditor to verify the compliance with the provisions of sections 269SS & 269T.

• The comparison of the composition of the shareholding is to be done with reference to the last day of the current previous year and the last day of the very previous year in which the loss was incurred.

• The carry forward of the loss incurred in respect of different previous years is to be determined with respect to the individual previous years.

• The above comparison of the shareholding can be done by referring to the Register of Members.

(a) & (b)

• In the case of items which are also covered under clause 17(f) the information provided in clause (i), (ii) & (iv) should agree with the information provided in clause 17(f).

• "We have verified the compliance with the provisions of Chapter XVII B regarding the deduction of tax at source and regarding the payment thereof to the credit of the Central Government in accordance with the Auditing Standards generally accepted in India which include test checks and the concept of materiality. Such audit procedure did not reveal any significant non-compliance with the provisions of Chapter XVII-B."

• "We have verified the compliance with the provisions of Chapter XVII B regarding the deduction of tax at source and regarding the payment thereof to the credit of the Central Government in accordance with the Auditing Standards generally accepted in India which include test checks and the concept of materiality. The non-compliance as revealed during such audit procedures are as mentioned in clause (b) hereunder":"