FREQUENTLY ASKED QUESTIONS ON E-FILLING OF TAX AUDIT REPORTS – OTHER ISSUES
Q1. Whether Tax Audit Report u/s 44AD etc will be counted in the specified limits of 45 Tax Audits?
Ans. As per Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, these will not be included and you can file unlimited such Tax Audit Reports
Q2. What are the limits on signing of Tax Audit Report?
Ans. As per Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008,
a) A CA can sign up to 45 Tax Audit.
b) In case of Partnership Firm, limit will be 45 / Partner.
c) Audit U/S 44AD, 44AE, 44AF will not be included in the limit. (FROM FY 2012-13, SEC 44AF ISNOT APPLICABLE)
Q3. What are the Tax Audit Reports which are to be compulsorily filed online?
Ans. As per Notification No. 34/2013 dated 01/05/2013, & Notification No. 42/2013 dated 11/06/2013, Audit reports under Sections 10 (23C) (iv), (v), (vi) or (via), 10A, 12A (1)(b), 44AB, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E or 115JB are to be filed electronically. (It covers audit report u/s 44AD, 44AE, 44AF also) (FROM FY 2012-13, SEC 44AF is not applicable)
Q4. Should we sign Tax Audit Report on 30th September?
Ans. As the word “before” has been used in sec. 44AB, we should not sign Tax Audit Report on 30thSeptember. You should sign Tax Audit Report before 30th September, since the assessee is required to “obtain” Tax Audit Report before the due date i.e. 30th September.
Q5. Where audit is to be conducted u/s 92E, what is the last date of filling online Tax Audit Report?
Ans. Normally, Tax Audit Report is to be submitted by 30th September. However, for these assesses Report u/s 92E as well as Tax Audit Report can be filled by 30th November.
Q6. Please advice in case of partnership firm can only one partner sign all the reports?
Ans.
a) Clause 12 Of Part I of Schedule I of Chartered Accountants Act allow a partner to sign on behalf of (i) Other Partner (ii) Firm
b) Sign can be either digital or physical
c) In my view, one partner can sign form 3CD etc. keeping in view the limit of 45 audits per partner.
[Clause 12 of Part I of Schedule I of Chartered Accountants Act states that “A CA in practice will be guilty if he allows a person not being a member of the institute in practice, or a member not being his partner to sign on his behalf or on behalf of his firm, any balance-sheet, P&L a/c, report or financial statements"]
Q7. An individual has two businesses audited by two different tax auditors. How to submit Tax Audit Report?
Ans. In my view, you can follow the below mentioned steps:
a) Combine data of two B/S, P/l, tax audit report and submit as one
b) If tax audit conducted by two CAs, any CA can submit.
c) It is advised to attach physical copies of both Tax Audit Reports too, for disclosure of the fact that (i) two CAs have done Tax audit and (ii) that CA who is filling had relied on the work of other CA
Q8. Can Income tax Return be e-filed after 30th September? However we will file Tax Audit Report within 30th September?
Ans. Yes, Online Tax Audit Report is to be filed by 30th September to avoid penalty of Rs. 1.5 Lakhs or ½% of Turnover, whichever is lower. However, return may be filed later. However, such return will be treated as belated return.
Q9. Can online filed Tax Audit Report be revised?
Ans. A Tax Audit Report which has not been approved by assessee can be revised. However after it has been approved by the assessee, it should not be revised. However, there is no restriction by the utility, as of now, to upload revised xml. So we should take due care, so that correct data is uploaded in the first instance itself. However, members may kindly note that, all the xml files uploaded will be there in their domain.
Q10. I have uploaded 5 returns without uploading tax audit as it was required to submit offline at that time. Should we submit these again online?
Ans. No, you are not required to submit IT Return online again. However, kindly ensure that Tax audit Report is duly uploaded within due date.
Q11. Whether e-Filing of ITR 7 For AY 2013 - 14 mandatory or can we file paper returns also?
Ans. It Is Mandatory To Submit Online
Q12. Are All Charitable Trust and Cooperative Society’s Income Tax Return Are to E-File?
Ans: The Charitable Trusts etc. are Required To File Return Online Also.
Q13. Is tax auditor responsible for delay in uploading of Tax Audit Report?
Ans. Guidance Note on Tax Audit states that normally, it is the professional duty of the CA to ensure that the audit accepted by him is completed before the due date. Hence, yes, if delay is attributable to his part.
Q14. What are the penalties for non furnishing a Tax Audit Report?
Ans. Sec 271B states that, if any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or furnish a report of such audit as required under section 44AB, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred fifty thousand rupees, whichever is less.
Q15. What are the circumstances under which penalty cannot be imposed for non furnishing of Tax Audit Report?
Ans. As per section 273B, no penalty is imposable under section 271B on the assessee for the above failure if he proves that there was reasonable cause for the said failure. The onus of proving reasonable cause is on the assessee. Some of the instances where Tribunals/Courts have accepted as "reasonable cause" are as follows:
(a) Resignation of the tax auditor and consequent delay;
(b) Bona fide interpretation of the term `turnover' based on expert advice;
(c) Death or physical inability of the partner in charge of the accounts;
(d) Labour problems such as strike, lock out for a long period, etc.;
(e) Loss of accounts because of fire, theft, etc. beyond the control of the assessee;
(f) Non-availability of accounts on account of seizure;
(g) Natural calamities, commotion, etc.
Q16. What is the format for maintaining records of Tax Audit Assignments?
Ans. Record of Tax Audit Assignments
1. Name of the Member accepting the assignment
2. Membership No.
3. Financial year of audit acceptance
4. Name and Registration No. of the firm/ firms of which the member is a proprietor or partner.
Sl. No.
|
Name of the Auditee
|
AY of the Auditee
|
Date of Appointment
|
Date of acceptance
|
Name of the firm on whose behalf the member has accepted the assignment
|
Date of communication with the previous auditor (applicable)
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
Q17. Is communication with the previous tax auditor necessary?
Ans. Yes
Q18. Should a CA accept Tax audit where undisputed fees of previous auditor have not been paid?
Ans. As per Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, “a member of the Institute in practice shall not accept the appointment as auditor of an entity in case the undisputed audit fee of another CA for carrying out the statutory audit under the Companies Act, 1956 or various other statuteshas not been paid”
Q19. Whether Form 3CA or Form 3CB to use for Tax Audit Report purpose of a Pvt. Ltd. Co. having statutory Audit done by the same CA.
Ans. Form No 3CA-3CD
Q20. While filling Director Details in ITR 6, only Indian Address is accepted in the form. However, one of the directors is an NRI and having foreign address. Should we fill in a local address of the Director and proceed or there is some other way out?
Ans. ITR-6 Required Residential Address. If Indian Address Available Then Give.
Particulars of MD, Directors,
who have held the office
|
Name
|
Designation
|
Residential
Address
|
PAN
|
S.No.
| ||||
Q21. Whether it is mandat
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