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Visakhapatnam Branch of SIRC CPE seminar on Tax Audit- Accounting Standards for Non Corporate Entities 19 th July, 2013 bharati & co1

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electronically filing is not a big task or dangerous "E" return filing & Audit report filing are not akin bharati & co2

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Filing of Return by electronically for 44AB cases Audit Reports are not required. Only information about date/ Name of auditor Etc. Fake Audit reports by Unscrupulous people To curb this ICAI Pursued for remedy The result is E filing of Audit reports bharati & co3

Slide 5 Rs. 25000 Expenditure of Personal nature: Past practice & assessments Any penalty or fine: Pena">

Expenditure of Capital nature: Policy of > Rs. 25000 Expenditure of Personal nature: Past practice & assessments Any penalty or fine: Penal interest is not penalty & compensatory nature. SAFEGUARDING NOTE for all above bharati & co22

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Any Income not credited to Profit & Loss Account Relevant to Proprietary Units. ---- Interest or salary from Firm ----- Gifts which are taxable u/s 56 ----- Commission etc to cover cushion !! Can we say refer Statement? bharati & co23

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Delay in remittance of PF, ESI Genuine reason in delay ; PF number not allotted Consideration of grace period ? Last day happens to be public holiday Paid after audit but before 139 due date ( employers share ) No place for reasons. Use your judgment & decide delay period bharati & co24

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Any scope for NO or Not Applicable ? Only NIL If we do not mention what is the result:?? The 3 CD is incomplete or even can be presumed as not true and correct bharati & co25

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Expenditure disallowable u/s 14A Most common point for proprietary entities. Dividends from companies Share of Profit from Partnership firms Any Exempted income earned by incurring expenditure. If so mention in Rupees ! bharati & co26

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Any Interest payable u/s 15 & 16 of MSMED Act may be ascertained This interest is relating to suppliers credit This will be disallowed u/s 23 of MSMED Act not under the IT Act !! Safe guarding point: If details not available make a note bharati & co27

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Quantitative details Grams, Kgs, Kilos, Sq. meters If data is not available or partially available make a suitable note Steel, cement dealers, cloth merchants Departmental stores etc. bharati & co28

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Documentation for our sake. SA-230 Engagement letter. SA -210: any fraud detection or only statutory ritual? This appointment is valid until it is cancelled SA 550 for related parties payments bharati & co29

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Working papers very much essential for The latest guidance note has given format of working notes > Personal nature of expenses. bharati & co30

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The number of Tax Audit assignments 45 Audits 44AD,44AE& 44AF are excluded Both Branch & HO are one unit All Branches of a bank is one unit Maintain register of Tax Audit assignments as prescribed by the Council bharati & co31

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FORM OF TAX AUDIT PARTICULARS TO BE FURNISHED BY MEMBERS/FIRM Record of Tax Audit Assignments Name of the Member accepting the assignment Membership No. Financial year of audit acceptance --------------------------------- Name and Registration No. of the firm/ firms of which the member is a proprietor or partner bharati & co32

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bharati & co33 Sl.No.Name ofAssessmentDate of Name of theDate of theyear of theappointmentacceptancefirm on whosecommunc - auditee behalf theation with member hasthe accepted theprevious assignmentauditor (applicable ) 1 1234567

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Thank you bharati & co34