Form 3CA - Professionals - Taxation - TIK Share
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Form 3CA


Ankit Sharma

2015-07-04

1.This form is to be used in a case where the accounts of the business

or profession of a person have been audited under any other law. The first

part of the report refers to the fact that the statutory audit of the assessee

was conducted by a chartered accountant or any other auditor in pursuance

of the provisions of the relevant Act, and the copy of the audit report along

with the audited profit and loss account and balance sheet and the

documents declared by the relevant Act to be part of or annexed to the profit

and loss account and balance sheet, are annexed to the report in Form No.

3CA. In a case where the tax auditor carrying out the audit under section

44AB is different from the statutory auditor, a reference should be made to

the name of such statutory auditor. In case the statutory auditor is carrying

out the audit under section 44AB, the fact that he has carried out the

Statutory audit under the relevant Act should be stated.

2. The next paragraph states that the statement of particulars required to

be furnished under section 44AB is annexed with the particulars in Form No.

3CD. The tax auditor has to further state that, in his opinion and to the best

of his information and according to examination of books of account

including other relevant documents and explanations given to him, the

particulars given in the said Form No.3CD and the annexure thereto are true

and correct subject to the observations/qualifications, if any.

3. The auditor is required to examine not only the books of accounts but

also other relevant documents directly related to transactions reflected in the

books of accounts like original purchase invoice, copy of bank statements,

bills, vouchers, various agreements/ contracts or any other document on the

basis of which preliminary entries are passed in the books of accounts.

4. Where any of the requirements in this form is answered in negative or

with qualification, the report shall state the reasons thereof. The tax auditor

should state this qualification in the audit report so that the same becomes a

comprehensive report and the user of the audited statement of particulars

can realize the impact of such qualifications.

5. It is possible that in the case of a person whose accounts of the

business or profession have been audited under any other law, which has

branches at various places, the branch accounts might have been audited by

branch auditors under the statute. If the audit under section 44AB is also

carried out by the same branch auditors or other chartered accountants, they should submit the report in Form No. 3CA to the management or the

principal tax auditor appointed for the head office under Section 44AB.

6. The principal tax auditor should submit his consolidated report on

the registered office/head office and branch accounts and report in his tax

audit report as his observation in paragraph 3 of Form No. 3CA as under:

"I/We have taken into consideration the audit report and the audited

statements of accounts, and particulars received from the auditors,

duly appointed under the relevant law, of the branches not audited by

me/us".

7. Item No. 4 of the notes to Form No. 3CA requires that the person, who

signs this audit report, shall indicate reference of his membership

No./certificate of practice number/authority under which he is entitled to sign

this report. No separate certificate of practice number is allotted by ICAI. As

such, where a chartered accountant acts as a tax auditor he should give his

membership number with ICAI while registering himself in the e-filing

portal.In case, the e-filing utility of Form No. 3CA requires the mention of the

Firm Registration number and the name of the firm on whose behalf the

member has conducted audit, the same should invariably be provided by the

tax auditor.

8. An assessee may have one or more branches outside India. The

accounts of such branches are normally audited by the professional

accountants overseas. The results of such branches are also incorporated in

the consolidated accounts prepared in this country. In the case of foreign

branches, the relevant information in respect of such branches as is required

by Form No. 3CD, may be obtained by the tax auditor in India from the

assessee who should obtain the same from the overseas auditor who had

audited the accounts of such foreign branches. The tax auditor in India while

certifying the information in Form No. 3CD may rely upon the information

obtained by him from the overseas auditor and while submitting his

consolidated report in Form No.3CD, he should specifically point out the

following in his audit report in paragraph 3 of Form No.3CA as his

observation:-

“I/We have taken into consideration the audit report and the audited

statements of accounts, and particulars received from the auditors,

appointed under the relevant law, of the overseas branches not

audited by me/us”.

If the assessee is unable to obtain relevant information in respect of the

overseas branches duly certified by the overseas auditor, the relevant facts

should be suitably disclosed and reported upon.

9. Where the tax auditor is unable to obtain the required information in

respect of branches situated in India or outside India then the fact should be

suitably disclosed along with its impact on the Auditor’s opinion on the

particulars furnished in Form No.3CD, as an observation in clause (3) of

Form No, 3CA.

 

click here to download form 3CA in word format Revised-Form-No.-3CA.doc