The Central Board of Direct Taxes (CBDT) has amended Form No. 3CA, Form No. 3CB and Form No. 3CD of the Income-tax Rules, 1962 (the Rules). The amended Form No. 3CA and 3CB now require explicit mention of the observations/qualifications, if any, by the auditors while issuing the true and correct audit report.
There are a number of significant amendments to the Form No. 3CD e.g. on thedirect tax front, the revised Form No. 3CD now requires submission of the
valuation related details of transfer of land, building or both for a lower
consideration, receipt of shares of a private limited company without
consideration or for inadequate consideration and receipt of any consideration for issue of shares which exceeds the fair market value of the shares. Due to the amendments made in the Form No. 3CD, the reporting
responsibilities of the assessee and the auditor have increased
The revised clause 49 ofthe Equity Listing Agreement was issued by the Securities and Exchange Board of India (SEBI) in April 2014 to be applicable to all listed companies from 1 October 2014.
SEBI received various representations from industry associations, companies and other market participants seeking clarifications and interpretation relating to certain provisions of the Equity Listing Agreement. The SEBI also sought the status of preparedness of top 500 listed companies by market capitalisation for ensuring timely compliance with the revised clause 49. To address the concerns and to help the listed companies to ensure compliance with the provisions of the revised clause 49, the Securities and Exchange Board of India (SEBI) vide circular dated 15 September 2014 has amended some of the requirements of the revised clause 49.
In our call, we discussed these amendments and developments.
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.