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Wednesday, 12 September 2018

Extension of Due Date for submission of Tax Audit Reports and related Income Tax returns from 30th September, 2018 to 31st October, 2018

ICAI requests CBDT for extension of Due Date for submission of Tax Audit Reports and related Income Tax returns from 30th September, 2018 to 31st October, 2018.




THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
Date: 31st August, 2018


ICAI/DTC/2018-19/Rep – 27

Shri Sushil Chandra Ji,
Chairman,
Central Board of Direct Taxes,
Ministry of Finance,
Government of India,
North Block,
New Delhi-110001.

Respected Sir,

Re: Request for extension of time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018


Our sincere appreciation of your good office action to defer reporting requirements in respects of GAAR and GST provisions 

At the outset, we would like to place on record our sincere appreciation for considering the hardships and issues faced by the taxpayers and tax auditors in respect of new requirements added by notification no. 3312018/: No. 370142/9/2018, TPL dated 20th July 2018 in Tax Audit Report (TAR) in Form No. 303 and the favourable decision of your good office to defer implementation of clause 30C (pertaining to General Anti-Avoidance Rules (GAAR)) and clause 44 (pertaining to Goods and Services Tax (GST) compliance) of the Form No. 3CD till 3I’ March,2019 vide Circular No. 6 of 2018 dated 17th August 2018.


Rule of ICAI through its Direct Taxes Committee inter alia to be a bridge between lax payers and tax administration:



As you are kindly aware that the Institute of Chartered Accountants of India (KAI) is a statutory body established on 1st July, 1949 by an Act of Parliament, viz., The Chartered Accountants Act, 1949 for regulating the profe.sion of Chartered Accountants in the country. Moreover, the Direct Taxes Committee of ICAI is one of the important Committees of the !CAI which is engaged ii the matters related to direct taxes and makes representations to the Government, Central Board of Direct Taxes and at other appropriate forums from time to time on various legislative amendments and issues concerning direct taxes and endeavours to be a bridge between the tax payers and the tax administration. 

In the matters of audits including tax audits, the ICAI has responsibility to maintain and enhance quality of reports:



The Government is well aware that the Institute has the onerous responsibility of ensuring and enhancing the quality of services provided by its members to clients and other stakeholders. Conducting the tax audit in an effective manner is, also necessary to ensure that there is no loss to the Revenue. In fact the prime objective of tax audit is to assist the assessing officer to determine income from business or profession.It is also necessary to emphasize for your kind appreciation that in the context of audit requirements, the chartered accountants are also the stakeholders.

Request to involve ICAI

As you may be kindly aware, tax audit under section 44AB of the Income-tax Act, 1961 is one of the important areas, for which ICAI has always been consulted by the CBDT before making any change in the format of tax audit reports. This was so, since tax audit is exclusively conducted by Chartered Accountants, which makes them the only stakeholder. Even though ICAI’s suggestions were sought for revision of the forms of tax audit, and the DTC of ICAI had submitted such suggestions long back, but the changes have been affected too late and it would have been more beneficial both for the revenue and ICAI, had we been given the opportunity to partner the Department while finalizing the new formats. The practice of sharing and consulting ICAI on the final format of tax audit report before notifying has been followed in past years and was expected his year also. Nevertheless, we hope and request you to involve ICAI, before notifying any such important document. It is pertinent to mention that even the Ministry of Corporate affairs shares and seeks comments on every such important document from ICAI.
We sincerely request you to consider our suggestions and involve us in matters concerning Chartered Accountants at an early stage so that we are able to contribute and avoid such issues. We are hopeful for a positive consideration of our suggestions.


Yours faithfully,
Chairman, Direct Taxes Committee
The Institute of Chartered Accountants of India

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