CBDT issued an Order under section 119 of Income Tax Act, 1961 vide a Circular No. 10/2020 dated 24.04.2020 regarding requirement under clause 30C and clause 44 of the Form 3CD. Due COVID-19 pandemic Clause 30C which pertaining to General Anti-Avoidance Rules (GAAR) and Clause 44 which pertaining to Goods and Services Tax (GST) compliance of Form 3CD is deferred for the third time till March 2021.
Clause 30C: (a) Whether the assessee has entered into an impermissible avoidance arrangement, as referred
to in section 96, during the previous year? (Yes/No.)
(b) If yes, please specify:—
(i) Nature of impermissible avoidance arrangement:
(ii) Amount (in Rs.) of tax benefit in the previous year arising, in aggregate, to all the parties to
Clause 44: Break-up of total expenditure of entities registered or not registered under the GST
|Sl. No.||Total amount of Expenditure incurred during the year||Expenditure in respect of entities registered under GST||Expenditure in respect of entities registered under GST||Expenditure in respect of entities registered under GST||Expenditure in respect of entities registered under GST||Expenditure relating to entities not registered under GST|
|Relating to goods or services exempt from GST||Relating to|
|Relating to other registered entities||Total payment to registered entities|
Read the full text of Circular no. 10/2020 dated 24.04.2020
Circular No. 10/2020
F. No. 37014219/20 18-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, dated 24th April, 2020
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 31st March, 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31 .03.2020 vide Circular No. 9/2019.
Several representations were received by the Board with regards to difficulty in implementation of reporting requirements under clause 30C and clause 44 of the Form No. 3CD of the Income-tax Rules, 1962 in view of the Global Pandemic due to COVID-19 virus and requested for deferring the applicability of the above provisions.
The matter has been examined and in view of the prevailing situation due to 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, 2021.
Dy. Commissioner of Income Tax (OSD)