The reporting requirement of these details in
income tax audit form has been kept in abeyance till March 31, 2021 -- meaning
that all income tax audit reports need not include details on the GST and the
General Anti-Avoidance Rules (GAAR) till March 2021.
New Delhi: The Income Tax
Department on Monday deferred for the third time the requirement for companies
to include in their I-T audit report the details of the Goods and Services Tax
(GST) and GAAR.
The reporting requirement of these details in
income tax audit form has been kept in abeyance till March 31, 2021 -- meaning
that all income tax audit reports need not include details on the GST and the
General Anti-Avoidance Rules (GAAR) till March 2021.
Business entities having a turnover of more than
Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation) and
professionals with gross receipts of more than Rs 50 lakh have to comply with
the tax audit requirements.
The due date for its filing is September 30 and
if the taxpayer is covered by transfer pricing provisions, the due date is
November 30.
The Central Board of Direct Taxes (CBDT) in an
order issued on Monday said the board has received representations with regard
to difficulty in implementation of reporting requirements under clause 30C
(pertaining to GAAR) and clause 44 (pertaining to GST compliance) of the Form
No 3CD in view of the global pandemic due to COVID-19 and requested for
deferring it's applicability.
"The matter has been examined and in view
of the prevailing situation due to COVID-19 pandemic across the country, it has
been decided by the board that the reporting under clause 30C and clause 44 of
the tax audit report shall be kept in abeyance till March 31, 2021," the
CBDT said.
In July 2018, the I-T
department had changed the tax audit form - 3CD, seeking details under the GST
as well as the GAAR, which seeks to prevent companies from routing transactions
through other countries to avoid taxes.
The changes were to come into effect from August
20, 2018.
With stakeholders complaining that the change is
onerous and a burden on companies, the CBDT had then deferred the
implementation of the change in I-T audit form till March 31, 2019. Further in
May 2019, the CBDT had deferred its implementation till March 31, 2020, and
with April 24 order it has now been deferred till March 31,2021.
Consulting firm AKM Global Tax Partner Amit
Maheshwari said, "We don't have a detailed guidance on certain aspects
related to reporting on GAAR.
This certification poses a challenge to auditors
as it is very subjective in nature. Though this deferment comes as a relief to
the auditors, it is better to do away with this requirement as it not fair to expect the auditors to comment on
such subjective piece of legislation."
Nangia Andersen LLP Director Sandeep
Jhunjhunwala said, "The decision to defer the onerous reporting
requirements is a clear indicator that the CBDT is ensuring that there aren't
any slips between the cup and the lip, leading to taxpayers' anguishes. In the
midst of COVID-19 pandemic, tax authorities have been proactively announcing
the relaxation in compliance and reporting obligations for businesses ..
the Economic Times
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