Escolar Documentos
Profissional Documentos
Cultura Documentos
INTRODUCTION
PURPOSE
RESPONSIBILITY
• Trade Discount
• Turnover discount
• Special rebate allowed
• Sales Return
• Freight, insurance, dispatch charges and some other similar charges
• Sales proceeds of any fixed Assets or of Property held as property for
Investment.
• Sales proceeds of shares, securities and debentures if same are not part
of stock.
PURPOSE OF TAX AUDIT Lunawat & Co.
The purpose of tax audit is to:
1. Ensure proper maintenance of books of accounts and other records.
2. Reflect true income of tax payer.
3. Facilitate the administration of tax laws by a proper presentation of
accounts before tax authorities.
4. Assist the income tax department to assess the correct income.
5. Ensure that income chargeable has been computed as per sec 145 of the
Act. i.e. Method of accounting And ensure that the AS notified* under section
145 have been followed or not.
* CBDT till now has notified the following two Accounting Standards:
1. AS relating to Disclosure of Accounting Policies.
2. AS relating to Disclosure of Prior Period and Extraordinary Items and
Changes in Accounting Policies.
TAX AUDITOR ROLES AND
RESPONSIBILITIES Lunawat & Co.
1. The Tax Auditor must be Chartered accountant.
2. Obtain Letter of appointment and must agreeing with the terms of audit
engagement letter.
5. The tax auditor shall maintain proper working paper. Such working paper
shall includes:
2. Audited Balance sheet and Profit & loss Account along with notes.
3. Particulars in Form-3CD.
4. Certify Form-3CD.
7. Membership No.
TAX AUDIT REPORT Lunawat & Co.
New Form- 3CB(AY 2014-15)
The Tax Auditor should give audit Report in Form- 3CB, if the accounts of
the Business or Profession have not been audited under any other Law
and such report should refer and annexed:
1. Examine and certify Balance sheet & Profit and loss account.
3. Particulars in Form-3CD.
4. Certify Form-3CD.
7. Membership No.
TAX AUDIT REPORT Lunawat & Co.
Amended Form-3CD
The tax auditor report should annexed with Form 3CD. Whose important
new amended clause are as follows:
• Clause 17: Sale of Property, if consideration less than the value adopted
by the state government i.e. Deemed sales Consideration u/s 43CA &
50C of the Act and furnish:
o Detail of Property
o Consideration received
o Value assessable.
TAX AUDIT REPORT Lunawat & Co.
• Clause 21(b): Details of Amount inadmissible u/s 40(a)(i) & 40(a)(ia) of
TDS not deducted or deducted but not deposited. E.g. date, amount, nature
56(2)(viib).
section 73A.
TAX AUDIT REPORT Lunawat & Co.
• Clause 39: Audit u/s 72A of the finance Act, 1994 regarding valuation of
• Clause 41: Demand raised and refund in previous year under any laws
other than I.T. Act. or Wealth tax Act. Along with details of relevant
proceedings
Thank You
Presented By: Harshit Arora
( Article Assistant at Lunawat & Co.)