I-T dept again suspended the inclusion of details regarding GST & GAAR in tax audit report till 31st March 2020 that means the reporting necessity of GST and General Anti-Avoidance Rules (GAAR) details in income tax audit form has been suspended till March 2020.
The mutation seemed to be backbreaking for the companies and the companies were not yet ready to grasp this anomaly completely which lead to its adjournment again and again. The deferment has given a big relief to the companies.
Ashok Maheshwary & Associates LLP Partner Amit Maheshwari said this deferment comes as a relief to the auditors.
“Currently, the requirements are difficult to comply with and the practitioners are not properly prepared. The lack of clarity in these clauses has made it very difficult to comply with,” Maheshwari added.
This is the second time on May 14th that the obligation for companies to add the details of Goods and Services Tax (GST) and GAAR has been put off on hold.
Initially, the changes in the tax audit form – 3CD seeking details under GST and GAAR was introduced by the I-T department in July 2018 and its implications were to come into effect from August 20, 2018.
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This step was taken by the I-T department to curb companies from doing transactions via other countries with the motive of tax evasion. But witnessing that the change is burdensome and arduous for companies, as a complaint by them, the CBDT concluded and postponed the application of this alteration in I-T audit form till March 31, 2019.
However, the Central Board of Direct Taxes (CBDT) issued an order on Tuesday informing that they have received representations about the further postponement of the implementation of reporting requirements under clause 30C (pertaining to GAAR) and clause 44 (pertaining to GST compliance) of the Form No 3CD.
“The matter has been examined and it has been decided by the Board that the reporting under clause 30 C and clause 44 of the Tax Audit Report shall be kept in abeyance till March 31, 2020,” the CBDT said.
Compliance with the tax audit requirements will be mandatory for the business entities whose turnover exceeds Rs 1 crore and if they have opted for presumptive taxation then the limit extends to Rs 2 crore. The professionals also will have to comply with the tax audit requirements if their gross receipts supersede Rs 50 lakh.
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The due date for its filing is September 30 and November 30 for the normal taxpayers and the taxpayers under transfer pricing provisions, respectively.
