The Clause 44 of the Form 3CD is effective for Assessment Year 2022-23 i.e. for the Financial Year 2021-22 because the compliance of this clause was kept in abeyance till 31/03/2022 but for all the reports submitted after that date the clause is mandatory.
Since the audits for the Financial Year 2021-22 are under process hence we should study how to report and comply this clause and how the Assesssee under audit will submit the data under this clause.
The primary duty of submission of the details is of Auditee and for verification of the information supplied under this clause can be verified from the GSTR-2A, GSTR-2B, AIS and other records available with the dealer.
Most of the information required for this clause is already available with the Law makers in the form of GSTR-2A and AIS and what is the use of this information in Form 3CD is better known to the lawmakers but since the clause is there hence the Assessee and Auditor has to follow and comply it.
Let us see an Example with certain notes
|
S.NO. |
Total Amount of Expenditure incurred during the year |
Expenditure in respect of entities |
Expenditure relating to entities not |
|||
|
Relating to Goods or Services exempt form GST |
Relating to the Entities falling under Compositions Scheme |
Relating to other Registered Entities |
Total Payments to Registered Entities |
|||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
1. |
22355475.00 |
199660.00 |
177040.00 |
19488780.00 |
19865480.00 |
2489995.00 |
WORKING AND CALCULATION
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING ON 31-3-2022
|
PARTICULARS |
AMOUNT |
PARTICULARS |
AMOUNT |
|
Opening Stock |
720000.00 |
Sales |
22345000.00 |
|
Purchases |
19676875.00 |
Closing Stock |
845000.00 |
|
Gross Profit |
2793125.00 |
||
|
Total |
23190000.00 |
Total |
23190000.00 |
|
Salary |
555000.00 |
Gross Profit |
2793125.00 |
|
Travelling |
234500.00 |
||
|
Office Expenses |
365600.00 |
||
|
Repair and Maintenance |
117600.00 |
||
|
Interest |
305600.00 |
||
|
Local Conveyance |
34500.00 |
||
|
Festival Expenses |
132400.00 |
||
|
Commission |
75000.00 |
||
|
Business Promotion |
123400.00 |
||
|
Depreciation |
76560.00 |
||
|
Net Profit |
772965.00 |
||
|
Total |
2793125.00 |
Total |
2793125.00 |
CALCULATION FOR PRESENTATION IN CLAUSE 44 OF FORM 3CD
|
S.NO. |
Total Amount of Expenditure incurred during the year |
Expenditure in respect of entities registered under GST |
Expenditure relating to entities not registered under GST |
|||
|
Relating to Goods or Services exempt form GST |
Relating to the Entities falling under Composit ions Scheme |
Relating to other Registered Entities |
Total Payments to Registered Entities |
|||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
|
Purchases |
19676875. |
0.00 |
120340.0 |
18456000. |
18576340. |
1100535.0 |
|
00 |
0 |
00 |
00 |
0 |
||
|
Salary |
555000.00 |
0.00 |
0.00 |
0.00 |
0.00 |
555000.00 |
|
Travelling & |
234500.00 |
176500.0 |
0.00 |
0.00 |
176500.00 |
58000.00 |
|
Petrol |
0 |
|||||
|
Expenses |
||||||
|
Office Expenses |
365600.00 |
5600.00 |
56700.00 |
75600.00 |
137900.00 |
227700.00 |
|
Repair and Maintenance |
117600.00 |
0.00 |
0.00 |
45780.00 |
45780.00 |
71820.00 |
|
Interest |
305600.00 |
0.00 |
0.00 |
0.00 |
0.00 |
305600.00 |
|
Local Conveyance |
34500.00 |
17560.00 |
0.00 |
0.00 |
17560.00 |
16940.00 |
|
Festival Expenses |
132400.00 |
0.00 |
0.00 |
0.00 |
0.00 |
132400.00 |
|
Commission |
75000.00 |
0.00 |
0.00 |
75000.00 |
75000.00 |
0.00 |
|
Business Promotion |
123400.00 |
0.00 |
0.00 |
101400.00 |
101400.00 |
22000.00 |
|
Capital Expenditure-Car |
735000.00 |
0.00 |
0.00 |
735000.00 |
735000.00 |
0.00 |
|
Reporting |
22355475.0 |
199660.00 |
177040.00 |
19488780.0 |
19865480. |
2489995.00 |
|
Amount |
0 |
0 |
00 |
|||
|
Depreciation |
76560.00 |
NA |
NA |
NA |
NA |
NA |
One can give consolidated figures for all the expenditures under this clause or one can give Revenue and Capital Expenditure under the serial Number 1 and 2 but it should be noted there is no place in the utility to mention the expenditure under the head Revenue and Capital Expenditure with name. Hence consolidated figure can also serve the purpose.
Further in case of Depreciation, In my opinion there is no need to include figure of depreciation in these figures because in that case further bifurcation is not possible but if you choose to include the figure of depreciation then use your discretion and ask the client to submit the details in such manner.
This is illustrative description of the figures to be reported in Clause 44 of Form 3CD based on the certain opinions of the Author of this Article. The comments for improvement of the study are invited to make it more useful.
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