1. The Taxation Laws (Ordinance),
2019 has been promulgated by the President of India to amend the
Income-tax Act, 1961 and the
Finance (No. 2) Act, 2019. The
Ordinance has introduced two new corporate tax rates, i.e., at 15% and 25%
for the domestic companies. However,
the benefit of reduced tax rate shall be available only when total income of
the company is computed without claiming specified deductions, incentives,
exemptions and additional depreciation available under the Income-tax
Act.
Monday, October 28, 2019
INSIGHT: The Arm’s-Length Standard Is Not the Problem
Next year is the 85th anniversary of
the adoption of the arm’s-length standard (ALS) by the U.S. government as the
norm to be used for pricing transactions among related parties for the purpose
of calculating their U.S. corporate income tax (CIT).
I mportant Clause in TAR Vs ITR
|
S
No.
|
Clause in TAR
|
Particulars
|
Schedule in ITR
|
|
1
|
Form 3CA
|
In Statutory Audit was carried
out by other
Audit Firm, mention
statutory audit was conducted by "M/s" otherwise "US"
|
NA
|
|
2
|
3CD-9(b)
|
Change
in Partners / Members
|
PartA-General 2
|
|
3
|
3CD-10
|
Nature
of Business, Change in Business
|
PartA-General 2
|
|
4
|
3CD-12
|
Presumptive
Profits
|
PartA-P&L, Schedule BP
|
|
5
|
3CD-13e
|
Adjustmemts
to ICDS
|
Schedule ICDS
|
|
6
|
3CD-14
|
Valuation
of Stock U/s 145A
|
Schedule Part A - OI
|
|
7
|
3CD-16
|
Amount not credited to
P&L A/c
a. Items falling
U/s 28
b. Proforma
Credits, drwbacks, refund
c. Escalation
claims, Capital Receipts etc
|
Schedule Part A - OI
|
|
8
|
3CD-18
|
Depreciation U/s I T Act
|
Schedule
BP, DPM, DOA (Compare last year closing
WDV with TAR and ITR)
|
|
9
|
3CD-19
|
Amounts admissible U/s 32AC
- 35E
|
Schedule BP, ESR, RA
|
|
10
|
3CD-20
|
Amounts admissible U/s
36(1)(va) (Employee contribution to PF, ESI)
|
Schedule Part A - OI
|
|
11
|
3CD-21(a)
|
In TAR, it is
only a disclosure. Don’t try to link all disallowance U/s 37 in ITR
|
Schedule Part A - OI
|
|
12
|
3CD-21(b)
|
Details
of payments on TDS not deducted, TDS unpaid Vs
Clause
34(a) of TAR
|
Schedule Part A - OI
|
|
13
|
3CD-21(c)
|
Salary, commission,
interest paid to partner U/s 40(b)
|
Schedule Part A - OI
|
|
14
|
3CD-21(d)
|
Disallowance U/s
40A(3)/(3A)
|
Schedule Part A - OI
|
|
15
|
3CD-21(e)
|
Disallowance U/s 40A(7)
|
Schedule Part A - OI
|
|
16
|
3CD-21(f)
|
Disallowance U/s 40A(9)
|
Schedule Part A - OI
|
|
17
|
3CD-21(h)
|
Disallowance U/s 14A
|
Schedule Part A - OI
|
|
18
|
3CD-21(i)
|
Disallowance U/s 36(1)(iii)
|
Schedule Part A - OI
|
|
19
|
3CD-23
|
Disclosure
of PAYMENTS made to persons covered U/s 40A(2)(b) (Have to disclose all payments made to above parties and it is not
limited to expenses)
|
PartA-BS,
Schedule AL (Verify with Related Party
Disclosures in Financials)
|
|
20
|
3CD-24
|
Deemed Profits U/s 32AC,
32AD, 33AB, 33AC, 33ABA
|
Schedule Part A - OI Schedule BP
|
|
21
|
3CD-25
|
Deemed Profits U/s 41
|
Schedule Part A - OI
|
|
22
|
3CD-26(i)(A)(a)
|
Disallowed U/s 43B in
earlier years and paid in current year
|
Schedule Part A - OI
|
|
23
|
3CD-26(i)(A)(b)
|
Disclose amounts disallowed U/s 43B in earlier
years and not paid in current year
|
Schedule Part A - OI
|
|
24
|
3CD-26(i)(B)(a)
|
Disclose payments related
to current PY and paid in current PY - U/s 43B
|
Schedule Part A - OI
|
|
25
|
3CD-26(i)(B)(b)
|
Disclose payments related to current PY and UNPAID
upto filing of ROI - U/s 43B
|
Schedule Part A - OI
|
|
26
|
3CD-26(i)(A)(a)
|
Disallowed in earlier years
and paid in current year
|
Schedule Part A - OI
|
|
27
|
3CD-27(a)
|
Provide details of ITC as
per books of accounts
|
NA
|
|
28
|
3CD-27(b)
|
Details of Prior Period
Income / Expenses
|
Schedule Part A - OI
|
|
29
|
3CD-29B(a)
|
Income U/s 56(2)(x)
|
Schedule OS
|
|
30
|
3CD-30
|
Amounts borrowed / repaid
U/s 69D
|
Schedule OS
|
|
31
|
3CD-32(a)
|
Details of Brought Forward
Losses
|
Schedule CFL, UD
|
|
32
|
3CD-32(b)
|
Change in shareholding U/s
79
|
PartA-General 2
|
|
33
|
3CD-32(c)
|
Losses in Speculative
Business U/s 73
|
Schedule BP, BFLA, CFL
|
|
34
|
3CD-32(d)
|
Losses in Specified
Business U/s 73A
|
Schedule BP, BFLA, CFL
|
|
35
|
3CD-32(e)
|
Deemed Speculative Business
U/s 73
|
Schedule CFL, UD
|
|
36
|
3CD-33
|
Deduction U/s Chapter VIA,
Section 10A, 10AA
|
Schedule
10AA, 80G, 80GGA,
80,
VIA
|
|
37
|
3CD-34a,b
|
Details
of payments on TDS not deducted, TDS unpaid Vs
Clause 34(a) of TAR (verify with Financials, TDS
returns)
|
NA
|
|
38
|
3CD-34c
|
Interest paid U/s 201(1A),
206C(7)
|
Schedule Part A - OI
|
|
39
|
3CD-35
|
Quantitative details of
Inventory
|
Schedule Part A - OD
|
|
40
|
3CD-36
|
Details of Distributed
Profits U/s 115O
|
Schedule DDT
|
|
41
|
3CD-36A(a)
|
Details of deemed dividends
U/s 2(22)e
|
Schedule AL
|
|
42
|
3CD- 40
|
Details of various ratios
|
PartA-Trading A/c, P&L
|
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