The I-T Dept had, in 2018,
changed the tax audit form 3CD, seeking details under GST as well as GAAR,
which seeks to prevent firms from routing transactions through other countries
to avoid taxes.
The income tax (I-T) department on Monday deferred, for the third time, the requirement for firms to include details of Goods and Services Tax (GST) and GAAR in their tax audit report, in view of the pandemic.
The reporting requirement
of these details in the I-T audit form has been kept in abeyance till March 31,
2021, suggesting that audit reports need not include details on GST and General
Anti-Avoidance Rules (GAAR) till then.
Business entities with
turnover of over 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, for which the due date is September
30.
It is November 30 in case
of the taxpayer being covered by transfer pricing provisions. The Central Board
of Direct Taxes (CBDT), in an order, said: “Several representations were
received by the Board with regards to the 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, and requested for deferment.”
The I-T Department had, in
2018, changed the tax audit form 3CD, seeking details under GST as well as
GAAR, which seeks to prevent firms from routing transactions through other
countries to avoid taxes. The changes were to come into effect from August 20,
2018.
Assessees had been
complaining that the change was onerous and a burden on companies, which led to
its deferment till March 2019, and then till March 2020.
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