Thread by @taxologyin

Few Important points to keep in mind while reporting clause 44 of Form 3CD i.e. 'Break-up of total expenditure of entities registered or not registered under GST'

(As per the guidance note on Tax Audit under Section 44AB by @theicai )

[A 🧵]

@PratibhaGoyal @TaxationUpdates

a. The total expenditure will include purchases as well

b. Depreciation & deduction for bad debts are not required to be reported

c. Expenditure incurred in respect of activities mentioned under Schedule III to the CGST Act are not required to be reported. Eg: Employees Salary

d. Exempt supply will also include non-taxable supply.

Non-taxable supply includes supply of goods or services which are not leviable to GST. For Eg:
(i) alcoholic liquor
(ii) petroleum crude, high speed diesel oil, motor spirit, natural gas & aviation turbine fuel

e. An appropriate disclosure/disclaimer may be made by the auditor in Form 3CA/3CB:
(i) If the assessee is not in a position to give details as required
(ii) for the view taken by the assessee to define the meaning of “Total expenditure” and the method of filling up the details

f. Capital expenditure should also be reported under this clause.

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Note: This is a summary only, do read the guidance note for detailed info.

@CA_HarshilSHETH @caanuragwriter #form3cd #incometax #guidancenote #icai