For Attention of members
carrying out tax audit u/s 44AB of the Income-tax Act,1961.
|Attention of members is invited towards the changes
in the Guidance Note on tax Audit under section 44AB of the Income-tax
Act, 1961 approved subsequent to the publication of the Supplementary
Guidance Note, issued by the erstwhile Fiscal Laws Committee, as a
part of the publication “Guidance Note on Audit of Fringe Benefits
under the Income-tax Act, 1961” in 2006.
|The Fifth Edition of the Guidance Note on Tax Audit
under section 44AB of the Income-tax Act, 1961 incorporating the law
as amended by the Finance Act, 2005 was published in September, 2005.
Subsequently, a supplementary Guidance Note has been published on the
amendments made by the notification No. 208/2006 dated 10th August,
2006 issued by the Central Board of Direct Taxes in Form No. 3CD.
|Subsequent to the publishing of the above
Supplementary Guidance Note, the Finance Act, 2007 has made amendments
in section 40A(3). New Rule 6DD was inserted in the Income-tax Rules
by notification No. 208/2007 dated 27.6.2007 w.e.f. A.Y. 2008-09.
|The Council thereupon approved some more changes
subsequent to the publication of the Supplementary Guidance Note.
These may be taken into consideration while reading in the Guidance
Note on Tax Audit [2005 Edition] and the Supplementary Guidance note
on Tax Audit [2006 Edition published along with the Guidance Note on
Audit of Fringe Benefits under the Income-tax Act, 1961].
|For convenience of members the clauses wherein there
have been changes are listed hereunder and the full text which forms
part of the Guidance to members is available here. Please note that some
changes approved relating to fringe benefits have not been given here
since they are no longer relevant.
- Clause No. 12(a) and (b) of Form 3CD Para No. 23 of the Guidance
- Clause 17(h) of Form 3CD Para 35 of the Guidance Note
(Subsequent changes have been made in section 40A(3) by the Finance
Act, 2008 and Finance (No. 2) Act, 2009 and also in Rule 6DD.These
changes may have an effect on the computation of the amount to be
reported but no further guidelines in this regard is considered
- Clause 17(l) of Form 3CD
- Clause 17A in Form 3CD – Amount inadmissible under section 23 of
the Micro, Small and Medium Enterprises Development Act, 2006.
- Select issues in accounting for state level VAT. (These do not
represent the views of the Council but are based on the original
draft prepared by Indore Branch of the CIRC of the Institute.)
|In this connection, we would also like to invite the
attention of members towards the announcement dated 12.12.2008, in the
light of which from the A.Y.2010-11, an internal auditor of an
assessee cannot be appointed as his tax auditor. Click here for
further clarification regarding non-
applicability of the same only for tax audit relating to financial
year ending 31st March,2009 in certain cases.