As per clause 30 of 3CD, a tax auditor is supposed to disclose whether any cost audit was carried out, if yes, enclose a copy of the report of such audit, now i was going through many articles, to check the exact implications of this clause, in case company has no cost audit report on hand, whilst going through the online material and opinions, this is the opinion i formed, 1) scenario where cost audit is applicable, cost auditor is appointed, report not signed till date of finalisation of tax audit, and there is sufficient time to do the same. => mention the same fact, also mention that the same does not mean any violation or non-compliance as there is nowhere mentioned that cost audit should be completed before tax audit.however there is sec139(9) saying that without cost audit report, tax audit report will be defective or incomplete return, The defect/incompleteness may be cured and a reply may be filed before the Assessing Officer with in the time allowed but not later than 15 days from the date of such intimation. If the assessee fails to do so the return filed shall be treated as an invalid return. and as we well know, what the penalty then would be. 2) scenario where cost audit is applicable, cost auditor is not appointed, => to qualify the report or to buy time, for the client, thats the question, best answered by practitioners, keeping in view the most probable outcome........ :-) heres some links, useful for this subject... knowledgebible/forum/showthread.php/3129-Clause-wise-discussion-on-form-3CD-Clause-30 caclubindia/experts/notice-u-s-139-9--359255.asp#.UiBuYEFgf8s
Posted on: Fri, 30 Aug 2013 11:14:44 +0000
Trending Topics
Recently Viewed Topics
© 2015