Understanding Clause 44 of Tax Audit Report (Form 3CD)
 

Clause 44 in the Tax Audit Report (Form 3CD) is a crucial element for businesses and auditors, as it pertains to GST reporting requirements. This clause requires a breakdown of the total expenditure incurred by entities, whether registered or not under GST. In this article, we’ll provide an analysis and overview of what is expected under Clause 44.

Clause 44 states as under:

Break-up of the total expenditure of entities registered or not registered under the GST:

Expenditure in respect of entities registered under GST

S. No.                The total amount of Expenditure          Relating to goods or services           Relating to entities falling under the              Relating to other

                             incurred during the year                      exempt from GST                              composition scheme                                  registered entities

Total payment to registered entities (1) (2) (3) (4) (5) (6) (7) – Column 6+Column 7 – – – Sum of (Col 3+Col 4+Col 5) – Column Wise Understanding of the Clau