Quote from Nitin Kanwar on September 5, 2023, 4:12 pm

DRAFT MANAGEMENT REPRESENTATION LETTER FOR NON- CORPORATE ENTITY

PREPARED BY CA NITIN KANWAR

To,

 

Chartered Accountants

Add:                                                     

 

Sub:    Representation for the purpose of Tax audit for the financial year 2022-2023 (Assessment year 2023-2024)

Dear Sir/Madam,

 

This representation letter is provided in connection with Tax audit of the books of accounts of the

                                                                                                                                            for the Year ended on 31/03/2023 for the purpose to ascertain/derive/report the requirements of Form Nos. 3CA/3CB and 3CD, to ensure that the books of account and other records are properly maintained, that they truly reflect the income of the taxpayer and claims for deduction/relief are correctly made by him & to checking fraudulent practices.We acknowledge our responsibility to keep and maintain such books of account and other documents as may enable the Tax auditor to do tax audit u/s 44AB, in accordance with the provisions of Income Tax Act, 1961.

 

I/We understand our responsibility for the preparation of Form 3CD. Form 3CD should be duly filled & authenticated byme/us. Yourself will only verify and confirm the same & on that basis form the opinion & issue the report in Form 3CA/3CB Subject to the observation, if any as the case may be.

 

 

We confirm, to the best of our knowledge and belief, the following:-

 

1. The name of the assessee as per PAN card is . Copy of PAN Card has been attached

 

2. I/we am/are liable/not liable to pay indirect taxes & if yes, for that registration number is as follows:
   1. Service Tax:
   2. VAT:
   3. Excise:
   4. Import Export Code:
   5. GST:

Copy of Registration Certificates has been attached herewith.

 

3. The relevant clause of Section 44AB under which the Tax Audit is being conducted is :

Please Tick whichever is applicable.

 

• carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year :
• carrying on profession shall, if his gross receipts in profession exceedfifty lakh rupees in any previous year:
• carrying on the business shall, if the profits and gains from the business is lower than deemed the profits and gains under section 44AE or section 44BB or section 44BBB:
• carrying on the profession shall, if the profits and gains from the professionis lower than deemed the profits and gains under section 44ADA:
• carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year:

 

4. The following is the members/partners of the firm & their profit sharing Ration is as follow:

 

S No.	Name	Profit Sharing Ratio

 

5. There is no change in partners or members or in their Profit Sharing Ratio since the last date of the preceding

OR

There is change in partners or members or in their Profit Sharing Ratio since the last date of the preceding year. The particulars of the change is as follow:

 

S No.	Name                   of Partner/Member	Type           of Change	Old             Profit sharing Ratio	New              Profit sharing Ratio	Remarks

 

Certified copy of Partnership deed/LLP Agreement has been attached herewith.

 

6. Nature of Business or Profession carried during the year, along with sector, subsector, code is as follows:

 

Sector	Sub-sector	Code

 

7. There is no change in the nature of business or

OR

There is change in the nature of business or profession. The particulars of such change is as follows:

 

Business	Sector	Sub-sector	Code

Certified copy of Partnership deed/LLP Agreement has been attached herewith.

 

8. List of Books of Account maintained and the address at which the books of accounts are kept as follows:

 

S No.	List of Books	Address

 

9. The Profit and loss account does not include any profits and gains assessable on presumptive

OR

The Profit and loss account include the profits and gains assessable on presumptive basis. The details of which are as follows:

 

Section	Other Section	Amount

 

10. We/I have employed Mercantile/Cash Method of accounting in the previous year i.e. Y. 2021-22.

 

11. There is no change in the method of accounting employed in the previous year as compared to employed in immediately preceding financial year e. F.Y. 2021-22.

OR

There has been a change in the method of accounting employed in the previous year as compared to employed in immediately preceding financial year i.e. F.Y. 2021-22. The effect of the same on profit is as follow:

 

Particulars	Increase in profit	Decrease in Profit

 

 

12. No adjustment has been made to the profits or loss for complying with the provisions of

OR

 

Adjustments is required to be made to the profits or loss for complying with the provisions of ICDS. The effects of such adjustments are as follow:

 

ICDS	Increase in Profit	Decrease in Profit	Net Effect

 

13. ICDS Disclosure : Already mailed to you. Can also check @

 

14. I/we have employed method of Valuation of Closing Stock during the year and there is no deviation from the method of valuation prescribed u/s 145A and this is tax

OR

I/we have employed                                                                                 method of Valuation of Closing Stock during the year. There is deviation from the method of valuation prescribed u/s 145, the details of which as follow:

 

Particulars	Increase in Profit	Decrease in Profit

 

15. None of the Capital Asset has been converted into Stock-in-trade.

OR

The Capital Assets has been converted into Stock-in-trade during the year i.e. F.Y. 2021-22 & the details of the same are, as under:

 

Description of Capital Assets	Date of Acquisition	Cost of Acquisition	Amount at which assets is converted into stock-in-trade

 

16. The detail of items not credited to Profit & Loss Account is as follows:

 

1. All items falling within the scope of section 28 has been credited to P/L

OR

The following items falling within the scope of section 28 has not been credited to P/L Account:

 

Description	Amount

 

1. The Credits, drawbacks, refund of duty of customs or excise or service tax or refund of sale tax, VAT, GST has been credited to P/L

 

OR

The Credits, drawbacks, refund of duty of customs or excise or service tax or refund of sale tax, VAT, GST has not been credited to P/L Account, details of which as follow:

 

Description	Amount	Remarks

 

1. Escalation claim accepted during the year has been credited to Profit And loss

OR

Escalation claim accepted during the year has not been credited to Profit And loss Account, details of which as follow:

 

Description	Amount

 

1. The details of Other Items not credited to profit & loss Account is as under:

 

Description	Amount

 

1. The details of Capital receipts not credited to profit & loss Account is as under:

 

Description	Amount

 

17. No Land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CA or 50C, details has been furnished in the annexure

OR

Land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CA or 50C, details is as follow:

 

Detail          of Property	Address      of Property	Consideration received or accrued	Value adopted or assessed or assessable

 

 

18.   Copy of Depreciation Chart along with copy of FAR has been attached herewith.

 

19. I/we does not have any investment linked deduction u/s 32AC, 32AD, 33AB, 33ABA, 35(1)(i), 35(1)(ii), 35(1)(iia), 35(1)(iii), 35(1)(iv), 35(2AA), 35(2AB), 35ABB, 35AC, 35AD, 35CCA, 35CCB, 35CCC, 35CCD, 35D, 35DD, 35DDA, 35E

OR

I/we have claimed investment linked  deductions u/s                               . Copy of amount paid and other supporting has been attached herewith.

 

20. I/we had not paid any sum to the employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or [Section36(1)(ii)]

OR

I/we had paid any sum to the employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend, [Section36(1)(ii)] details as follows:

 

Description	Amount

 

21. I/we have not received any contributions from employees for various funds as referred to in section 36(1)(va)

OR

I/we have received any contributions from employees for various funds as referred to in section 36(1)(va)

 

Nature of Fund	Sum received from employees	Due date of payment	The Actual amount paid	The actual amount date of payment to concerned Authorities

 

Challans has been attached herewith.

 

22. The company has not debited to the profit and loss account, any amount being in the nature of capital, personal, advertisement expenditure

OR

The company has debited to the profit and loss account, any amount being in the nature of capital, personal, advertisement expenditure etc, the details as follow:

 

Capital Expenditure:

Particulars	Amount

 

Personal Expenditure:

Particulars	Amount

Expenditure on advertisement being souvenir, brochure, tract, pamphlet, etc published by a Political Party:

 

Particulars	Amount

 

Expenditure incurred at clubs

 

Particulars	Amount

 

Expenditure by way of penalty or fine for violation of law or otherwise or for offence or which is prohibited by law:-.

 

Particulars	Amount

 

Expenditure incurred for any purpose which is an offence or which is prohibited by law:

 

Particulars	Amount

 

23. I/We had not made any payment to non-resident on which tax is not

OR

I/We had made payment to non-resident on which tax is not deducted, details is as follow:

 

Date of Payment	Amount	Nature of payment	Name of payee	PAN of payee	Address

 

24. I/We had not made any payment to non-resident on which tax has been deducted but not paid during the previous Challans of TDS has been attached herewith.

OR

I/We had made payment to non-resident on which tax has been deducted but not paid during the previous year, details is as follow:

 

Date of Payment	Amount	Nature of payment	Name of payee	PAN of payee	Address	Amount of TDS

 

25. I/We had not made any payment on which tax is not

OR

I/We had made payment on which tax is not deducted, details is as follow:

 

Date of Payment	Amount	Nature of payment	Name of payee	PAN of payee	Address

 

26. I/We had not made any payment on which tax has been deducted but not paid during the previous Challans of TDS has been attached herewith.

OR

I/We had made payment on which tax has been deducted but not paid during the previous year, details is as follow:

Date of Payment	Amount	Nature of payment	Name of payee	PAN of payee	Address	Amount of TDS

27. I/we have not paid any salary outside India or to a non-resident without

OR

I/we have paid any salary outside India or to a non-resident without TDS, details of which are as follows:

 

Date of Payment	Amount	Nature of payment	Name of payee	PAN of payee	Address

 

28. I/we have not debited the amount to profit and loss account being, interest, salary, bonus, commission or remuneration inadmissible under section 40(b)/40(ba).

OR

I/we had debited the amount to profit and loss account being, interest, salary, bonus, commission or remuneration inadmissible under section 40(b)/40(ba) and details are as under:

 

Particulars	Section	Amount debited to P/L	Amount admissible	Amount inadmissible	Remarks

 

 

29. No expenditure has been made by me/us other than account payee cheque drawn on a bank or account payee bank

OR

I/we have made other than account payee cheque drawn on a bank or account payee bank draft, details as follows:

 

Detail of Payment	Nature of Payment	Amount	Name of payee	PAN of Payee

 

30. I/we had made provision of Gratuity of                               during the year & had paid Rs.             of Gratuity. Supporting of Payment has been attached herewith.

 

31. I/we does not have any contingent

OR

I/we am/are having contingent liability of Rs.                             on account of

                                                          .

 

32. I/we have not earned any exempt income during the

OR

I/we have earned exempt income and the details of amount of expenditure incurred in relation to such income are as follows:

 

Particulars	Amount

 

33. I/we have not paid any interest on delayed payment to the Micro, Small and Medium Enterprises Development Act,

OR

I/we have paid the interest of Rs                            on delayed payment to the Micro, Small and Medium Enterprises Development Act, 2006.

 

34.  I/we have not made any payments during the previous year to the related parties.

OR

I/we have made any payments during the previous year to the related parties, details are as follows:

 

Name of related parties	PAN	Relation	Nature of transaction	Amount

 

35. I/we does not have any new setup of Plant and Machinery in backward area or Tea Development Account, Coffee Development Account and Rubber Development Account or Site Restoration Thus no Deemed Profits/Gains under Section 32AD/33AB/33ABA.

OR

I/we have any new setup of Plant and Machinery in backward area or Tea Development Account, Coffee Development Account and Rubber Development Account or Site Restoration etc. the details of Deemed Profits/Gains under Section 32AD/33AB/33ABA, details are as follows:

 

Section	Description	Amount

 

36. I/we does not have any Reversal/writing back of trading liability, Sale of assets of undertaking, Sale of assets used in scientific research, Recovery of Bad Debts allowed earlier, Withdrawal from special reserve, Adjustment/ Set off of loss Thus there is no amount of profit chargeable to tax u/s 41.

OR

I/we does have any Reversal/writing back of trading liability, Sale of assets of undertaking, Sale of assets used in scientific research, Recovery of Bad Debts allowed earlier, Withdrawal from special reserve, Adjustment/ Set off of loss etc. Thus the details of amount of profit chargeable to tax u/s 41 is as follows:

 

Name of Party	Amount          of Income	Section	Description     of Transaction	Computation

 

37. The details of liability pre-existed on the first day of the previous year e. F.Y. 2019-20 but was not allowed in the assessment of any preceding previous year i.e. F.Y. 2018-19 and was

• paid during the previous year is (Copy of challan or other supporting has been attached herewith.)
• not paid during the previous year is

OR

I/we does not have any liability pre-existed on the first day of the previous year i.e. F.Y. 2019-20 but was not allowed in the assessment of any preceding previous year i.e. F.Y. 2018-19.

 

38. The details of liability was incurred in the previous year and was

• paid on or before the due date for furnishing the return of income ofthe previous year under section 139(1) of (Copy of challan or other supporting has been attached herewith.)
• not paid on or before the aforesaid date of

OR

I/we had not incurred any liability in the previous year.

 

39. I/we does not have availed or utilized any CENVAT Credit during the

OR

 

 

The amount of CENVAT Credit availed or utilized by me/us during the year is as follows:

 

CENVAT	Amount	Treatment in Profit & loss Account
Opening Balance
CENVAT Availed
CENVAT Utilized
Closing/Outstanding Balance

 

40. I/we have not credited or debited any Prior Period Income or Expenditure during the

OR

I/we have Prior Period Income or Expenditure during the year, details as follows:

Type	Particulars	Amount	Period to which it relates

 

41. I/We have not received any amount which is to be included as income chargeable under the head ‘income from other sources’ as referred to in section 56(2)(ix) or section 56(2)(x) .

OR

I/We have received any amount which is to be included as income chargeable under the head ‘income from other sources’ as referred to in section 56(2)(ix)/section 56(2)(x), details are as under:

 

Nature of Income	Amount

 

42. I/we does not have amount borrowed on Hundi or any amount repaid thereon otherwise than account payee

OR

I/we have amount borrowed on Hundi or had amount repaid thereon otherwise than account payee cheque, details of the same are as under:

 

Name of	PAN	Address	Amount	Date of	Amount	Amount	Date of
person			borrowed	borrowing	due	repaid	repayment
					including
					interest

 

43. No primary Adjustment have been made to transfer price, as referred to in sub-section (1) of section 92CE, has been made during the previous TP Report attached herewith.

OR

Primary Adjustment have been made to transfer price, as referred to in sub-section (1) of

section 92CE, has been  made during the previous year, details has been disclosed in the annexure.

 

 

 

SN	Under which clause of sub- section (1) of section 92CE primary adjustment is made?	Amount of primary adjustment	Whether the excess money available with the associated enterprise is required to be repatriated to India as per the provisions of sub- section (2) of section 92CE	If yes, whether the excess money has been repatriated within the prescribed time	If no, the amount (in Rs.) of imputed interest income on such excess money which has not been repatriated within the prescribed time	Expected date of repatriation of money

 

44. I/we have not incurred expenditure during the previous year by way of interest or of similar nature exceeding one crore rupees as referred to in sub-section (1) of section

OR

I/we have not incurred expenditure during the previous year by way of interest or of similar nature exceeding one crore rupees as referred to in sub-section (1) of section 94B, details is as under:

 

SN	Amount (in	Earnings	Amount (in	Details of interest expenditure		Details of interest expenditure
	Rs.) of	before	Rs.) of	brought forward as per sub-		carried forward as per sub-
	expenditure by	interest, tax,	expenditure by	section (4) of section 94B		section (4) of section 94B
	way of interest	depreciation	way of interest
	or of similar	and	or of similar
	nature	amortization	nature as per
	incurred	(EBITDA)	(i) above
		during the	which exceeds
		previous year	30% of
			EBITDA as per
			(ii) above
				Assessment	Amount	Assessment	Amount
				Year		Year

 

45. I/we have not taken or accepted any loan or deposit in an amount exceeding the limit specified in section 269SS during the previous year otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account

OR

I/we have taken or accepted any loan or deposit in an amount exceeding the limit specified in section 269SS during the previous year otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, details are as follow:

 

SN	Name of the	Address of the	PAN of the	Amount of	Whether the	In case the
	person from	person from	person from	specified sum	specified sum	specified sum
	whom specified	whom specified	whom specified	taken or	was taken or	was taken or
	sum is received	sum is received	sum is received	accepted	accepted by	accepted by
					cheque or bank	cheque or bank
					draft or use of	draft, whether
					electronic	the same was
					clearing system	taken or
					through a bank	accepted by an
					account	account payee
						cheque or an
						account payee
						bank draft

 

 

46. I/we had not receivedan amount of two lakh rupees or more from a person in a day, in respect of single transaction, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account as specified in section 269ST

OR

I/we had had receivedan amount of two lakh rupees or more from a person in a day, in respect of single transaction, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account as specified in section 269ST, details of the same as under

 

SN	Name of the Payee	Address of the Payee	PAN of the Payee	Nature of transaction	Amount of Payment	Date Of Payment

 

47. I/we have not repaid any loan or deposit in an amount exceeding the limit specified in section 269T during the previous yearotherwise than by an account payee cheque or account payee bank draft drawn or by use of electronic clearing system through a bank account.

OR

I/we have repaid any loan or deposit in an amount exceeding the limit specified in section 269T during the previous yearotherwise than by an account payee cheque or account payee bank draft drawn or by use of electronic clearing system through a bank account, details are as follow:

 

SN	Name of the payee	Address of the	PAN of the	Amount of	Maximum	Whether the	In case the
		payee	payee	the	amount	repayment	repayment
				repayment	outstanding	was made by	was made by
					in the account	cheque or	cheque or
					at any time	bank draft or	bank draft,
					during the	use of	whether the
					previous year	electronic	same was
						clearing	taken or
						system	accepted by
						through a	an account
						bank account	payee cheque
							or an account
							payee bank
							draft

 

48. I/we does not have any brought forward loss or

OR

I/we have any brought forward loss or depreciation, details are as follow:

 

SN	Assessme nt Year:	Nature of loss /Depreciation allowance	Amount as returned	Amount as assessed		Remarks
				Amount	Order No and Date

 

49. I/We have not incurred any speculation loss during the previous

OR

I/We have incurred speculation loss of Rs.                                                during the previous year.

 

 

50. I/We have not incurred any loss in respect of specified business during the previous

OR

I/We have incurred loss of Rs.                                               in respect of specified business during the previous year.

 

51. I/We have not claimed any deduction under Chapter

OR

I/We have claimed any deduction under Chapter VIA, details are as follow:

 

Section	Amount

 

52. I/We have not required to deduct or collect tax as per provisions of the

OR

I/We have is required to deduct or collect tax as per provisions of the Act, the details are as follow:

TAN/PA	Section	Nature of	Total	Amount on	Amount on	Amount of	Amoun	Amount	Amount of
N		Payment	amount of	which tax	which tax	tax	t on	of tax	tax deducted
			payment of	was	deducted	deducted	which	deducted	or collected
			receipt of	required to	or collected	or collected	tax is	or	but not
			nature	be	at specified		deducte	collected	deposited
			specified in	deducted	rate		d or	at less rate	with
			column (3)	or collected			collecte		Government
							d at		.
							rate
							less
							than
							specifie
							d rate

 

TDS Challans has been attached herewith.

 

53. The company is not required to furnish the TDS Returns

OR

The company is required to furnish the TDS Returns, the details are as follow:

 

SN	Tax deduction and collection Account Number (TAN)	Type of Form	Due date for furnishing	Date of furnishing, if furnished	Whether the statement of tax deducted or collected contains information about all details/transactio ns which are required to be reported	If not, please furnish list of details/transactio ns which are not reported

 

TDS Returns has been attached herewith.

 

54. The company is not liable to pay interest on late payment of TDS or late deduction of TDS.

OR

The company is liable to pay interest on late payment of TDS or late deduction of TDS, details are as follows:

 

SN	TAN No.	Amount of interest under section 201(1A)/206C(7) is payable	Amount	Dates of payment

 

55. In case of Trading concern, the quantitative details of principal items of goods traded as follows:

 

SN	Item name:	Unit:	Opening stock:	Purchases during previous year:	Sales during previous year	Closing stock:	Shortage/excess, if any
1

 

OR

In case of Manufacturing Concern, the quantitative details of principal items of raw material,

Finished Products & By-Products as follows:

 

Raw Material:

SN	Item Name	Unit	Opening stock	Purchase during the previous year	Consump tion during previous year	Sales during previous year	Closing Stock	Yield of finished product	% of yield	Shortage/ Excess, if any

Finished Products

SN	Item Name	Unit	Opening stock	Purchase during the previous year	quantity manufactur ed during the previous year	Sales during previous year	Closing Stock	Shortage/Ex cess, if any

By-Products

 

SN	Item Name	Unit	Opening stock	Purchase during the previous year	quantity manufactur ed during the previous year	Sales during previous year	Closing Stock	Shortage/Ex cess, if any

 

56. I/we have not received any amount in nature of dividend as referred in Section 2(22)(e)

OR

I/we have received any amount in nature of dividend as referred in Section 2(22)(e), details are as follows:

Amount Received	Date of Receipts

 

 

 

 

57. I/we are not required to carry out any cost

OR

Cost Audit was carried out any during the year, the details of any disqualification or disagreement on any matter etc. identified by the cost auditor is as follow:

58. I/we are not required to carry out any audit under the Central Excise Act, 1944

OR

Audit under the Central Excise Act, 1944 was carried out any during the year, the details of any disqualification or disagreement on any matter etc. identified by the auditor is as follow:

59. I/we are not required to carry out any audit under the Section 72A of Finance Act, 1994

OR

Audit under the Section 72A of Finance Act, 1994 was carried out any during the year, the details of any disqualification or disagreement on any matter etc. identified by the auditor is as follow:

60. Details regarding turnover, gross profit, , for the previous year and preceding previous year:

 

Particulars	Previous year			Preceding previous year
Total turnover of the assessee
Gross profit/turnover
Net profit/turnover
Stock-in-trade/turnover
material consumed/Finished goods produced

61. No demand or refund has been raised against us during the year

OR

The details of demand raised or refund issued during the previous year under any tax laws other than Income tax Act, 1961 and Wealth tax Act, 1957 alongwith details of relevant proceedings, is as follows:

Financial year to which demand/refund relates to	Name of other tax law	Type (Demand raised/Refund received)	Date of demand raised/refund received	Amount	Remarks

 

 

62. I/we are not required to furnish any statement in Form 61 or Form No. 61A or Form No. 61B.

OR

I/we are required to furnish statement in Form No.61 or Form No. 61A or Form No. 61B, the detail is as follow:

Income-tax Department Reporting Entity Identification Number	Type of Form	Due date for furnishing	Date of furnishing, if furnished	Whether the Form contains information about all details/ transactions which are required to be reported	If not, please furnish list of the details/transaction s which are not reported

Copy of Form submitted has been attached herewith.

 

63. Clause: 44- We have been informed by the assessee that the information required under this clause has not been maintained by it in absence of any disclosure requirement thereof under the Goods and Service tax statute. It is not possible to determine break-up of total expenditure of entities registered or not registered under the GST, as necessary information is not maintained by the assessee in its books of accounts. Further the standard accounting software used by Assessee is not configured to generate any report in respect of such historical data in absence of any prevailing statutory requirement regarding the requisite information in this clause. In view of above we are unable to verify and report the desired information in this clause.

 

 

I/we hereby declare that the above stated information is correct and true and best to my/our knowledge.

 

 

For                                                  

 

 

(Assessee)

 

Note:

 

Whenever the assessee is not reporting or differently reporting in tax Audit report, Please ask him to give the reference of case laws, he relied upon.