Presentation-on-Tax-Audit-17-08-2018-SBS

Income Computation Disclosure Standards ICDS II – Valuation of Inventories: Disclosure Requirement:  the accounting policies adopted in measuring inventories  Where standard costing has been used as a technique for measurement the cost, details of such inventories and a confirmation of the fact that standard cost approximate actual cost; and  the total carrying amount of inventories and its classification appropriate to a person  Clause 13(f)(ii) of the Tax Audit Report. “When the inventory valued without including duties & taxes, the same should be included in valuation of inventory as per ICDS “ 101 [email protected] www.sbsandco.com +91 9440883366

Income Computation Disclosure Standards ICDS III – Construction Contracts - Disclosure Requirement:  The methods used to determine the stage of completion of contracts in progress.  Clause 13(f)(iii) & (iv) of the Tax Audit Report. S. No. Description of Total Amount of For the year ended 1. Contract revenue recognized 2. Contract cost 3. Profit recognized 4. Advances received 5. Retention money 102 [email protected] www.sbsandco.com +91 9440883366

Income Computation Disclosure Standards ICDS IV – Revenue Recognition - Disclosure Requirement:  for service transactions in progress at the end of previous year:  recognized profits less recognized losses up to end of previous year  the amount of advances received  the amount of retentions  Clause 13(f)(iv) of the Tax Audit Report. 103 [email protected] www.sbsandco.com +91 9440883366

Un-accounted Income IMPLICATIONS OF UNACCOUNTED INCOME TAX U/s 115 BBE of IT Act (A) SEARCH U/s 132 (B) (A.1) (A.2) (B.1) Income (B.2) Income Not Self-Declaration Detected By AO Admitted Total Tax Admitted Total Tax = 107.25% Incl. = 137.25% (incl. Cess &penalty) Cess & penalty) (A.1.1) Advance Tax (A.1.2) Advance Tax Paid Total Tax =77.25% Not Paid Total Tax = (60% Tax +25% sc+3% 83.25% (+ Penalty U/s.271AAC @ 10% of cess) Tax) 104 [email protected] www.sbsandco.com +91 9440883366

Things to remember Books of Account: Vouchers Bills MIS: Cash Flow Statements Records Profit & Loss Account Balance Sheet Income Tax & GST Periodical Statements/ Reports Corporate Laws & Rules Human Resources – HR Policies: Other Compliances: Minimum Wages; Advance Tax, TDS EPF; ESI; Transfer Pricing Shops & Commercial Professional Tax etc., Establishments; Other Registrations & Filings; RERA Bonus, Gratuity etc., FEMA; STPI & I E Code Statutory Audit Audits: Internal Audit Tax Audit – ICDS IFC; IND AS etc., 105 [email protected] www.sbsandco.com +91 9440883366

Thank you!!! At CA Suresh Babu S Managing Partner Tirupati Branch of SIRC of ICAI M/s SBS and Company LLP 17th August, 2018 [email protected] 9440883366 Our Presence: Hyderabad, Kurnool, Nellore, TADA, Vizag & Bengaluru: [email protected]; 040-40183366 Disclaimer: Please logon to: http://www.sbsandco.com/disclaimer/ Read our monthly SBS e-Journals www.sbsandco.com/wiki 106 www.sbsandco.com/digest