Recently the Ministry of corporate affairs has issued a new revised draft for the amendment of details to be given in the cost audit reports required by the companies to submit them with the government.
In the statement and draft of the amendment, the Ministry of Corporate Affairs mentioned that now the companies will have to submit the details of goods and services tax and relevant transactions while submitting cost audit reports.
The agenda for such demand is said to be the cross check tool for the government to verify and validate the transactions and GST relevant details fo the companies.
Also, the drafts have mentioned that the cost audit form will be also be filled out with the GST reconciliation data, which is actually the data given by the taxpayer and by the vendor for the matching purpose.
Also, the income tax department has released new return forms in which the business units were required to insert the GST identification number (GSTIN) and all the related transactions in the GST.
Note that the cost audit is required to be initiated in the case for INR 35 crores for some companies those which are in the regulated sector, while for the other it is INR 50 crores.
The amendment is not applicable for those companies who have filed cost audit for the previous financial year.
According to the draft amendment, by the ministry of corporate affairs, “Cost statements (monthly, quarterly and annually) in respect of reconciliation of indirect taxes showing details of total clearances of goods or services, assessable value, duties or taxes paid, CENVAT or VAT or service tax or goods and services tax, credit utilised, duties or taxes recovered and interest or penalty paid.”
Read Also: Types of Audit Provisions Under GST by CA Professionals
