CBDT further defers the GST Reporting in Tax Audit Report

The Central Board of Direct Taxes (CBDT) has vide its circular no 05/2021 dated 25th March 2021 further defers the reporting under clause 30C and clause 44 of Tax Audit Report Form 3CD till 31st March 2022.

Clause 30C of the Tax Audit Report deals with reporting that whether the assessee has entered into an impermissible avoidance arrangement, as referred to in section 96 of the Income Tax Act, 1961 during the previous year. If any assessee has entered into such arrangement the disclosure of nature of such arrangement and amount of tax benefit needs to be disclosed under this clause.

Further, Clause 44 of the Tax Audit Report deals with the reporting of the breakup of total expenditure of the entities registered or not registered under the GST.

Earlier these clauses has been kept in abeyance by the Government till 31st March 2021 vide its circular no 10/2020 dated 24th April 2020.

The government has fourth time postponed the applicability of these clauses of the Tax Audit Report.

Official Circular is as follows:-

F. No. 370142/9/2018-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
TPL Division
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Circular No. 05/2021

New Delhi, dated 25 March 2021

Order under section 119 of the Income-tax Act, 1961

Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 with effect from 20th August 2018. However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31 st March 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31st March 2020 vide Circular No. 9/2019. Vide circular no. 10/2020 dated 24.04.2020, it was further extended to 31 st March 2021.

In view of the prevailing situation due to the COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31 st March 2022.

(Ankit Jain)

Under Secretary (TPL)-III.

Copy to:
1. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)
2. PS to Secretary (Finance)
3. Chairman, CBDT
4. All Members, CBDT
5. All Pr. DGsIT/Pr. CCsIT
6. All Joint Secretaries/CsIT, CBDT
7. Directors/Deputy Secretaries/Under Secretaries of CBDT
8. The C&AG ofIndia (30 copies)
9. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
10. The Institute of Chartered Accountants of India
11. CIT (M&TP), Official Spokesperson ofCBDT
12. % Pro DGlT (Systems) for uploading on official website
13. JCIT (Database Cell) for uploading on departmental website
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