Tax audit report can be revised !

-

All about revision of tax audit report

Revised tax audit report. Revision of tax audit report

Every stakeholder is aware of applicability of tax audit and provisions of Section 44AB. Now we will discuss in the form of FAQs about revision of tax audit and related provisions of Income tax act, ICAI, UDIN etc. Kindly note this FAQs are prepared based on practical experience by members, discussion with seniors and discussion in the webinars. 

1. First and most important question is , can Tax Audit Report be revised? 

Answer is YES!. You can revise tax audit report.

2. How many times tax audit can be revised?

Straightforward answer to the question is there is no limit prescribed for revision ! However, do not take it liberally and wisely use opportunity. Don't file TAR in hurry thinking it can be revised later on!

3. Is there any reference in the Guidance Note on Tax Audit by ICAI w.r.t. revision of tax audit report?

There is no direct reference in "Yes" or "No" format given w.r.t. revision of tax audit report in the guidance note by ICAI. However Para 13.11 talks about revision of books and consequent reporting.  In case of revision, the audit report should be given in the manner as required by the Institute in SA-560 (Revised), Subsequent Events. 

As per Para No. of Guidance Note on Tax Audit:

13.11: It may be pointed out that report under section 44AB should not normally be revised.  However, sometimes a member may be required to revise his tax audit report on certain grounds (not an exclusive list).

13.12 In case where a member is called upon to report on the revised accounts, then he must mention in the revised report that the said report is a revised report and a reference should be made to the earlier report also. In the revised report, reasons for revising the report should also be mentioned

4.  What are the provisions related to revised tax audit report in the Income tax act?

CBDT has vide Notification No. 28/2021-Income Tax dated 1st April, 2021 notified that tax audit report can be revised to recalculate disallowances u/s 40 & 43B.

Notification No 28/2021 inserted sub rule 3 in the Income Tax rules:

(a) in rule 6G, after sub-rule (2), the following sub-rule shall be inserted, namely:-

"(3) The report of audit furnished under this rule may be revised by the person by getting revised report of audit from an accountant , duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing of report under sub-rule (1) and (2) which necessitates recalculation of disallowance under section 40 or section 43B."

5. Whether income tax portal allows filing revised tax audit report?

Yes. Income tax portal also permits filing of revised tax audit report. i.e. there is no technical issue w.r.t. filling revised tax audit report. It accepts tax audit report for same pan & same assessment year.

6. Is there any time limit provided for revision of tax audit in the Income tax act?

Notification No. 28/2021 says that for certain reason notified in this notification , before the end of the relevant assessment year for which the report pertains. However, for any reason as given in ICAI guidance notes no time limit mentioned for revision. 

7. Is UDIN required for revised tax audit report?

It is mandatory to obtain UDIN for all Certificates/reports issued by the members in practice. In case of revised tax audit report member should obtain fresh UDIN.

8. What all other precautions should be taken while furnishing revised tax audit report?

a) If tax audit report need to revise don't panic at all, first consult with senior members for inputs. It really helps!

b) At the time of submitting revised TAR if possible attach detailed note of reason to revise TAR. 

c) Member must mention "Revised Report" on each copy of revised report and reference should be given to the original TAR.

d) Submit revised copy of TAR to every stakeholders whom earlier original report was submitted. E.g. Bank etc.

@ Article by CA Mayur Todmal

Comments

Post a Comment

Popular posts from this blog

PF payment due dates for the FY 2020-21 for tax audit reporting

-
Image
PF payment due dates for the FY 2020-21 for the purpose of tax audit reporting While preparing Tax Audit Report in Form 3CD it is important to fill due date of payment to various Employees contribution fund and actual payment of the contribution. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va)" Most commonly reported funds under the clause are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI may result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2020-21 for quick reference  PF payment due dates for the FY 2020-21 Period Due date Day Extended date Reference Apr-20 15/05/2020 Friday                                -                           -   May-20 15/06/2020 Monday                  
Continue Reading

PF payment due dates for the FY 2021-22 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2021-22 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2021-22 for quick reference. PF payment due dates for the FY 2021-22 Period Due date Day
Continue Reading

Format of shorter notice consent for AGM (Annual General Meeting)

-
Image
Format of shorter notice consent for AGM (Annual General Meeting) Background The Companies Act mandates companies to issue a notice to members calling a general meeting at least 21 clear days before the date of the meeting. Sometimes, the matters in urgency require quick decision making and in such circumstances, the companies may go for calling general meetings at shorter notice. However, in case of the private limited companies the period can be less than 21 days as provided in the Articles of Association (AOA). Provision and Rule As per the provisions of Section 101 (1) of the Companies Act, 2013, every general meeting of a company may be called by giving not less than twenty-one days clear notice in writing or through electronic mode in such manner as provided under Rule 18 of Companies (Management and Administration) Rules 2014. What is Consent for shorter notice? It is permission obtained by the company from its shareholders, in advance, to call a general meeting at an earlier da
Continue Reading

PF payment due dates for the FY 2022-23 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2022-23 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2022-23 for quick reference. PF payment due dates for the FY 2022-23 Period Due Date Day Extended D
Continue Reading

Letter of Authority for Tax Practitioners (Income tax)

-
Image
LETTER OF AUTHORITY I/We ________________ Proprietor/Partner/Director of _______________________ hereby authorize Mr/Mrs/ CA __________________________ [   to appear, represent and settle on my/our behalf the Income tax assessment proceeding/s before the Income tax officer / Assistant/Dy. / Commissioner of Income tax or in appeal before the Appellate Assistant Commissioner of Income   Tax, Commissioner of Income tax (Appeal) or the Appellate tribunal or the Board of Direct taxes for the assessment year 20XX-XX and   [ to produce accounts and documents / statements and to receive on my/our behalf any notice or documents / statements issued in connection with the said proceedings ] or/and [ to apply for, obtain and receive refund order in respect of the said assessment (if any) and ] or/and [ to apply for copies of the Income tax assessment order, the Appellate order or the order of the Commissioner of Income tax, the Central Board of Direct-taxes ] . I/
Continue Reading