Q. New format of schedule 3 for non corporate having tax audit.

Question

Is new format of Balancesheet as presceibed by the icai by guidance note mandatory??

Answer 1

In strict legal terms, recommended and not mandatory. However, since it's ICAI publication and also required by ICAI Guidance Note on Tax Audit, non-compliance thereof would likely to prima-facie go against the auditor in all professional misconduct or disciplinary matters.

Extract of Para 10.2 on Page 39 of latest Guidance Note on Tax Audit:

"In case of certain assessees, law does not prescribe any specific format or requirements for preparation and presentation of financial statements. In such a case, the Accounting Standards Board of ICAI has issued guidelines for Form and related preparation and presentation guidelines. These are contained in ICAI Publication titled 'Technical Guide on Financial Statements of Non-Corporate Entities'. Tax auditors may consider inviting attention of assessees towards guidelines appearing in the said publication."