Management Representation Letter on Fringe Benefit Tax Audit

[Submitted by CA.V.M.V.Subba Rao,
B.Com., FCA, DISA
Nellore, Andhra Pradesh]

October 7, 2006

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ON THE LETTER HEAD OF CLIENT 

Management Representation Letter on Fringe Benefit Tax Audit

 

To                                                                                                        Dt.

Name of the Tax Auditor

Address

 

Dear Sir,

 

          Sub: FBT Audit of______________for the previous year ended_________

                  relevant to the assessment year

 

                                                        ***

We confirm the following representations made by our firm to you in connection with the Fringe Benefit Tax Audit forming part of tax audit report under Section 44AB of the Income-tax Act, 1961 ('the Act') for the year ended _____________issued in Annexure - II to Form No. 3 CD:

 

1. We have identified and appropriately classified all such payments/expenditures, which are subject to fringe benefit tax in terms of sections 115WA and 115WB of the Income-tax Act, 1961.

 

2. There are no unrecorded payments/expenditure which would have otherwise qualified for being subjected to the fringe benefit tax.

 

We acknowledge that we are responsible for the compilation of information in Annexure-II to Form No.3CD. We shall not hold you liable, in case if we incur any tax liability on account of any errors/omissions/mistakes  taken in the Annexure-II to Form No.3CD.

 

Thanking you,

 

 

                                        ANNEXURE - II to FORM NO.3CD

 

The tax auditor would give an unqualified opinion stating as under while certifying the Annexure-II to Form No.3CD (where FBT correctly identified & reported)

 

"In our opinion and to the best of my information and according to the explanations given to me and considering the materiality the particulars given in Annexure II gto Form No.3CD are true and correct".