The weekly messenger | Edition 26.22

Auditing News

Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 (AY 2022-23) – 14 August 2022

The Direct Taxes Committee of the ICAI has issued the revised edition of the Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961, which is applicable for the Assessment Year (AY) 2022-23 onwards. The revised Guidance Note includes all the substantial changes made in the provisions of law and in Form 3CD, since the issue of the last edition of the Guidance Note which was issued in the year 2014.

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Regulatory News 

Companies (Accounts) Fourth Amendment Rules, 2022 – 11 August 2022

The Ministry of Corporate Affairs (MCA) has issued the Companies (Accounts) Fourth Amendment Rules, 2022, wherein the following changes have been made in Rule 3 ’Manner of Books of Account to be kept in Electronic Mode’:

• As per the amended Rules, the books of account and other relevant books and papers maintained in electronic mode should remain accessible in India at all times.

• The back-up of the books of account and other books and papers of the company maintained in electronic mode, including at a place outside India, if any, is now to be kept in servers physically located in India on a daily basis as against the erstwhile requirement, where this requirement was required to be complied on periodic basis.

• In Rule 3(6), a new clause (e) has been inserted, as per which the companies would now be required to notify the Registrar about the name and address of the person in control of the books of account and other books and papers in India at the time of filing of the annual financial statements, where the location of the service provider is outside India.

These Rules shall come into force w.e.f. 12 August 2022.

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Companies (Incorporation) Third Amendment Rules, 2022 – 18 August 2022

The MCA has issued the Companies (Incorporation) Third Amendment Rules, 2022, wherein a new Rule i.e., Rule 25B ‘Physical verification of the Registered Office of the company’ has been inserted, as per which the Registrar, based upon the information or documents made available on MCA 21, shall visit at the address of the registered office of the company and may cause the physical verification of the said registered office for the purpose of Section 12(9) of the Companies Act, 2013, in presence of two independent witness of the locality in which the said office is situated.

Further, a report is also required to be prepared, comprising of the basic information about the Company, details of the Registrar visit etc.

These Rules shall come into force w.e.f. 20 August 2022.

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