MCQ Challenge On Tax Audits Forms For Audit Purposes

MCQ SELF CHALLENGE # 0073 ON FORMS TO BE FURNISHED BY ASSESSES FOR TAX AUDIT PURPOSES

Dear Professional Seniors & Friends,

Warm Greetings!

Here is the Next MCQ challenge posted by top tax consultant in Gurgaon on concept-based practical professional knowledge on Forms to be furnished by assesses for Tax Audit Purposes in a unique manner to be self-answered by participants. The detailed answers to these MCQs shall be posted the next day for the self-assessment of the participants.

MCQ 73.1: Which Tax -audit report is to be issued by a Chartered Accountant if ABC LTD has a turnover Exceeding Rs 100 Crore for F.V 01.04.2017 TO 31.03.2018

A) 3CA-3CB

B) 3CA-3CD

C) 3CB-3CD

D) 3CA-3CE

MCQ 73.2: What if in the above question, ABC Ltd has Accounting Year From 01.01.2017 to 31.03.2018, Which form does it require to Furnish

A) 3CA-3CB

B) 3CA-3CD

C) 3CB-3CD

D) 3CA-3CE

Answer MCQ Self Challenge # 0073

This post of MCQ is on Forms to be furnished by assesses for Tax Audit Purposes.

Answer to MCQ 73.1: B

Answer to MCQ 73.2: C

The audit report has to be furnished in either of the following forms:

• Form 3CA is to be filed in respect of a taxpayer carrying on a business or profession and who is already mandated to get his accounts audited under any other law que law other than income tax law)
• A company is required to get its accounts audited compulsorily for the Previous year April to March under the Companies Act 2010. So, it will
  furnish Form 3CA
• Form 3CB is to be filed in respect of a taxpayer carrying on a business or profession but who is not required to get his accounts audited under any other law
• In the Given case Since the Company ABC Ltd is required to get its Accounts Audited Under Companies Act 2013. So here For Tax Audit form 3CA 3CD should be filed (Correct Answer-B) for 1.
• In the other case Since the Accounting year of the Company is from January to December. So the Audit of the Company does not fall in the preview of the Companies Act. Hence Tax Audit is to be carried out Under the Income Tax Act 1961. And So form 3CB-3CD is to be titled (MCQ-
  73.2 Ans-C)

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as a professional opinion: you can definitely have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agr

Mobile: 9810116321