Wednesday, August 20, 2014

Due Date to File audit Report u/s 44AB for Fy 2013-14 Extended to 30.11.2014

CBDT has extended the date of obtaining and furnishing of tax audit report u/s 44AB for assessment year 2014-15(financial year 2013-14) from 30.09.2014 to 30.11.2014 vide notification dated 20.08.2014.

As you may aware of CBDT has recently amended the Tax audit form 3CA,3CB,3CD on 25.07.2014. ICAI has questioned the timing of the notification and represented to the  CBDT to implement new audit report format from assessment year 2015-16.

Please note that due date has been extended only to obtain and furnish tax audit report ,Due date to file income tax return for audit for Fy 2013-14 cases remains 30.09.2014.

Complete Text  of due date Extension is given as under.

New Delhi, the 20th August, 2014

Order Under Section 119 of the Income-tax Act, 1961

In exercise of power conferred by section 119 of the Income-tax Act (‘the Act’), the Central Board of Direct Taxes (CBDT) hereby extends the due date for obtaining and  furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act from 30th day of September, 2014 to 30th November, 2014.

2. It is further clarified that the tax audit report under section 44AB of the Act filed during the period from 1st April, 2014 to 24th July, 2014 in the pre-revised Forms shall be treated as valid tax audit report   furnished under section 44AB of the Act.

Under Secretary (TPL-III)

Practical tips on Survey, Search & Seizure under Income Tax Act, 1961

Practical tips on Survey, Search & Seizure under Income Tax Act, 1961

Presented by : CA Sanjay Agarwal

Mb: 9811080342

Email id:

Pre Survey & Search Precautions

 Pre Survey & Search Precautions

Monday, August 18, 2014



In my last Article we have provided the procedure for Appointment of Auditor under Companies Act- 2013. Under my this article am trying to give procedure for Removal Auditor.

The Ministry has taken a big step by notifying 183 major sections of Companies Act, 2013 w.e.f. 01.04.2014 out of which the provisions relating to Audit & Auditors is of utmost importance for all the Chartered professionals out there. This article contains the provision relating to Removal of Auditors.

Section- 140 of Companies Act talks about Removal of Auditor: - This section corresponds to Section 225 of the Companies Act. The Section seeks to provide for the provisions for removal of auditor before the expiry of his term. 

The Board of Directors of the company has no power to remove an auditor (Individual or Firm) appointed by the company in General meeting before the expiry of his term.


Subject to the maximum tenure of appointment, a retiring auditor can be re-appointed at an annual general meeting [Sec- 139(9)] if—

  • He is not disqualified for re-appointment;
  • He has not given the company a notice in writing of his unwillingness to be re-appointed; and
  • A special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed.



  • · This is applicable for Private Company and Public Company.
Approval: the Transaction of a company with Related Parties which are Not in the Ordinary Course of Business and which is Not on Arm Length Price require following approval for Entering into Such Transactions with Related Party:-

1- Board Approval
  • · For enter into transactions mention under this section Consent of Board of Directors is Require by Passing of Resolution in the Meeting of Board of Directors. 
Note: Such resolution can’t be pass by circulation of resolution to the Board of Directors.

Sunday, August 17, 2014


It is inevitable that 'dynamic environment demands constant changes'. One of such change had been made in the Companies Act by notifying the Companies Act, 2013.

In the present article we deal with the provisions of the 2013 dealing with the Auditors of the Company. The auditors of a company play a vital role towards the stakeholders of such company. The Auditors are required to audit the books of accounts of the company and report to the shareholders regarding the affairs of the Company which are carried out by the directors of the Company in the fiduciary capacity.

The provision related to auditors in the 2013 Act contains drastic changes as compared to the 1956 Act. The important one is defining the role of Auditors.

This article contains the description of some provisions related to auditors which have been modified in companies Act, 2013.

Thursday, August 14, 2014

Free transaction at other Bank's ATM reduced to 3 per Month in Metro cities

RBI has rationalise the nmber of free transaction at other bank's ATM . The number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs is reduced from the present five to three transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in the six metro centres, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.

Non Financial transaction like balance checking ,Printing Mini Statement or any other transaction at ATM. 

Full circular is given below. 

Usage of ATMs – Rationalisation of number of free transactions

The number of Automated Teller Machines (ATMs), which stood at a little over 27,000 as at end-March 2007, has increased to over 1.6 lakh across the country by end-March 2014. During the same period, the Point-of-Sale (POS) infrastructure has increased from 3.2 lakh to 10.65 lakh terminals. The ATMs are being gradually leveraged by banks to deliver other financial and non-financial products to their customers. Meanwhile, White Label ATMs (WLAs) have also been introduced in the country with the objective of increasing the ATM density and also building the rural and semi-urban ATM infrastructure. However, despite this growth, the deployment of both ATMs as well as POS infrastructure in the country is lop-sided with a significantly large presence in metropolitan and urban areas as compared to rural and semi-urban areas.

2. Recently, a few banks and the Indian Banks’ Association (IBA) had approached the Reserve Bank seeking changes in the extant instructions regarding free transactions at other banks’ ATMs. Referring to the growing cost of ATM deployment and maintenance incurred by banks on the one hand as well as the rising interchange out-go due to these free transactions, the IBA had sought the removal of free transactions at other banks’ ATMs at metro centres and other large townships in the country.

3. In this regard, we draw attention to our circular DPSS No. 1405/02.10.02/2007-2008 dated March 10, 2008 as well as IBA circular No. CE.RB-1/atm/1284 dated August 31, 2009 on levy of service charges for use of ATMs. Reference is also invited to our circular DPSS.PD.No. 2632/02.10.002/2010-2011 dated May 27, 2011 which, inter alia, state that five free transactions per month (inclusive of financial and non-financial transactions) is permitted at other bank ATMs.
4. After an analysis of the ATM deployment in the country as well as availability of alternate means of electronic payment infrastructure and access thereto, it has been decided to revise the existing directions as under:
  1. Taking into account the high density of ATMs, bank branches and alternate modes of payment available to the customers, the number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs is reduced from the present five to three transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in the six metro centres, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. Nothing, however, precludes a bank from offering more than three free transactions at other bank ATMs to its account holders if it so desires.
  2. This reduction will, however, not apply to small / no frills / Basic Savings Bank Deposit account holders who will continue to enjoy five free transactions, as hitherto.
  3. At other locations i.e. other than the six metro centres mentioned above, the present facility of five free transactions for savings bank account customers shall remain unchanged.
  4. ATM installing banks are advised to indicate clearly at each ATM location that the ATM is situated in a ‘metro’ or ‘non-metro’ location using appropriate means (message displayed on the ATM / sticker / poster, etc.) to enable the customer to identify the status of the ATM in relation to availability of number of free transactions. Further, banks are advised to ensure the “ATM location identifiers” in their ATM database is accurate and kept up-to-date at all times so as to minimise disputes, if any, in the matter.
  5. The issuing banks are also advised to put in place proper mechanisms to track such transactions and ensure that no customer inconvenience or complaints arise on this account.
  6. The provisions related to levy of charges for use of own-bank ATMs, vide our circular dated March 10, 2008, has also been reviewed. Accordingly, banks are advised that at least five free transactions (inclusive of financial and non financial transactions) per month should be permitted to the savings bank account customers for use of own bank ATMs at all locations. Beyond this, banks may put in place appropriate Board approved policy relating to charges for customers for use of own bank ATMs.
  7. The ceiling / cap on customer charges of Rs.20/- per transaction (plus service tax, if any) will be applicable.
  8. Banks are advised to ensure that the charges structure on ATM transactions, as per their Board approved policy, is informed to the customer in a fair and transparent manner.
  9. Further, banks are advised to put in place suitable mechanism for cautioning / advising / alerting the customers about the number of free transactions (OFF-US as well as ON-US) already utilised during the month by the customer and the possibility that charges may be levied as per the banks’ policy on charges.
5. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).
6. This directive shall come into effect from November 01, 2014.
7. Please acknowledge receipt.
Yours faithfully
(Vijay Chugh)
Principal Chief General Manager

Wednesday, August 13, 2014


General Circular No. 34/2014                                                                             F. No 02/13/2014 CL-V 



As you are aware, the Companies Act requires companies to file annual documents (Annual Return and Financial Statements) on the MCA21 electronic registry within prescribed time limits. Sections 92, 137 and 403 of the Companies Act, 2013, which correspond to sections 159, 220 and 611 of the Companies Act, 1956 may be referred to in this regard. These annual documents are considered very important in context of an up-to-date Registry, it is observed that a large percentage of companies have not filed their statutory documents making them liable for penalties and prosecution for such non-compliance. 

Tuesday, August 12, 2014

ICAI represent to applicable new formats of Form No.3CA/3CB and 3CD wef ay 2015-16

The new formats of tax audit reports namely Form No.3CA, 3CB and 3CD have been notified through Notification no. 33/2014 on 25/7/2014 with immediate effect. With regard to the same, certain genuine concerns were raised by the members, which, ICAI has, through a representation dated 07.08.2014, brought to the notice of the Hon’ble Finance Minister, Revenue Secretary, and Chairman CBDT for appropriate action at their end. Also, certain preliminary observations on the new forms have been shared with them.

For the reasons mentioned in detail in the representation and summarized below, ICAI has suggested:

The new formats of tax audit reports be made effective from the Assessment Year 2015-16 and not Assessment Year 2014-15. Alternatively, the due date for furnishing tax audit reports for the Assessment Year 2014-15 may be extended to 30th November, 2014