Changes in Tax Audit Report - AY 2018-19 | Form 3CD FY- 2017-18

Revised TAR Clause No.

Corresponding requirements for mentioned Clause No.

Explanation

4

GSTIN to be mentioned

Here, GST Registration no. is to be mentioned by person if he is liable to pay GST and a registered taxpayer.

19

Reporting of deductions under section 32AD

In this clause, disclosure is to be made in respect of deduction claimed u/s 32AD of IT Act, 1961 i.e

• For Investment made in New Plant & Machinery in notified backward areas of Andhra Pradesh, Bihar, Telangana and West Bengal.

24

Reporting of deemed gains under section 32AD

26

Disclosure of any sum payable to Indian Railways for the use of railway asset (deduction allowed on actual payment basis u/s 43B of IT Act, 1961)

This clause has been added in order to report allowability of any sum due to Indian railways for use of their asset on actual payment basis.

29A

Reporting regarding amount chargeable u/s 56(2)(ix) as “Income from other sources”

Under this clause, the amount which was received as advance against a Capital Asset and later on forfeited and no transfer of such capital asset taken place has to be reported.

29B

Reporting regarding amount chargeable u/s 56(2)(x) as “Income from other sources”

Under this clause, if any movable/ immovable property or any sum of money is transferred by one person to another person for no consideration or inadequate consideration then nature and amount of such transaction has to be reported.

30A

Details about Secondary Adjustments to Transfer Price u/s 92CE

As per Sec 92CE, if there is any primary transfer pricing adjustments made in case of an assessee by assessee himself or assessing officer then assessee is also required to make secondary adjustment provided:

• Primary adjustment is more than Rs. 1 Crore.
• The adjustment pertains to Assessment Year on or after 1st April, 2016.

The following information required to be reported under this clause:

• Disclosure of said Section.
• Disclosure of amount of primary adjustment.
• When money is required to be repatriated to India as per Sec 92CE and whether the same is made within the prescribed time.

• Disclosure of interest income on excess money not repatriated to India.

30B

Reporting of interest expenditure incurred exceeding Rs. 1 Crore u/s 94B

Sec 94B has been introduced in the act to limit the interest expense deduction claimed by an entity to its associated enterprises.

Which further restricted to:

• 30% of its Earning before interest, taxes, depreciation and amortization (EBITDA) or
• Amount of interest paid or payable to associated enterprise.

which ever is less.

However, exemption in interest expense claimed up to Rs. 1 Crore is provided to entities having low level of interest expense on the amount borrowed from their non-resident associated enterprises.

Further, taxpayers in banking and insurance business are excluded from the scope of this provision.

The assessee on whom this section is applicable is required to disclose the following information:

• EBITDA of previous year.
• Amount of interest expenditure.
• Amount of interest expenditure which exceeds 30% of EBITDA.
• Details of interest expenditure brought forward or carried forward. 

30C#

Reporting regarding Impermissible avoidance arrangements u/s 96

This clause requires the reporting of Impermissible Avoidance Arrangements as per GAAR (General Anti Avoidance Rule) provisions.

If arrangement falls within the ambit of such rules, then nature of such arrangement and amount of tax benefit in aggregate arising to all parties of arrangement must be reported here.

31(ba), 31(bb), 31(bc), 31(bd)

Reporting of cash receipt or cash payment exceeding limit specified u/s 269ST

Under this clause reporting of particulars regarding each receipt as well as each payment made in cash or cheque or bank draft (not being account payee cheque or account payee bank draft) is required to be made if it exceeds the limit as specified u/s 269ST i.e. Rs. 2 Lakh.

34(b)

Details of transaction not reported in TDS/TCS returns

Previously under this clause only answer is to be given in Yes/No regarding TDS/TCS return furnished by taxpayer contains details of all transactions or not.

But from now all taxpayer who have furnished TDS/TCS return require to disclose the details of all transactions which are reportable but not reported in TDS/TCS returns.

36A

Disclosure of amount received as Deemed Dividend u/s 2(22)(e)

The companies in which public are not substantially interested makes any payment by way of loans and advances to person who holds 10% or more voting power or to the person in which he is substantially interested then any payment to the extent of accumulated profits shall be considered as deemed dividend which is required to be reported under this clause.

42

Reporting of details of transactions not disclosed in Form no.# 61, 61A and 61B

Form No#61- Statement containing particulars of declaration received in Form No-60

Form No#61A – Statement of Specified Financial Transactions by specified reporting persons.

Form No#61B – Statement of reportable account by prescribed reporting financial institution for a calendar year.

Here in this clause all the transactions which are reportable but are not reported in these forms have to be reported.

43

Reporting details relating to furnishing of CbCR (Country by Country Reporting) by the taxpayer or its parent entity or alternate reporting entity

As per Section 286, there are few companies who are liable to comply with CbCR requirements in which they need to file Form#3CEAC and 3CEAD.

The entities on whom this section is applicable are require to disclose in TAR:

• Name of parent entity.
• Name of alternate reporting entity (if applicable).
• Date of furnishing of these reports.

44#

Reporting breakup of total expenditure into expenditure with registered and unregistered entities under GST 

Under this clause information regarding breakup of total expenditure incurred into expenditure with registered entities (including covered under composition scheme or exemption list) and not registered entities under GST.