Question ID : 40944

Tax Audit

Can a multinational company involved in Tax Audit work put a condition that Tax Audit report can be used only by Income Tax Authorities and not by anybody else

Answer ID : 80883

TAR is basically a part of audit report, which is used not only for taxation authorities but also for the stakeholders of the assessee.. Tax audit report form 3cd is the responsibility of the assessee and the auditor is required to comment thereof in form 3CA/cb. The auditor cannot relieved from its position that the report is used only for income tax authorities.. In form 9c, the tax audit report is used as basic for not verifying the view of financial statements. In my view, the vision of the MNC is not correct at all.. the company can give adverse/modified report if it is not in position to comment in any part thereof.

Answer ID : 80886

No restrictions can be placed on use of tax audit report.

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