Payments to Specified Persons u/s 40A(2)(b)

Under Clause 18, all the Payments made to Related Parties (Specified Persons) as mentioned in the section 40A(2)(b), needs to be reported in the relevant Annexure. This section empowers the accessing officer to disallow any expenditure in respect to which the payment is made to the Specified Persons.

To view the report for Payments to Specified Persons u/s 40A(2)(b) - Clause 18,

Go to Gateway of Tally > Audit & Compliance > 44AB Audit > Payments to Specified Persons

This report is empty by default. The Auditor needs to identify the Related Party Ledgers to display the required information in this report as shown:

The Payments to Specified Persons screen displays all the transactions in which the Ledgers marked as Related Party are Debited. It also displays the total number of Unaudited Vouchers for each related Party with the total amount. The description for each field is explained below:

Button options in the Payments to Specified Persons screen

F4: Group

To filter the Payments to Specified Persons based on the Groups,

F7: Show All Vch

By default the Audit Status for the Unaudited Vouchers is only displayed in the Payments to Specified Persons report. To view the Status for both Audited and Unaudited Vouchers,

The Payments to Specified Persons screen appears with detailed Audit Status as shown:

F8: Show Audit Amt

By default the Payments to Specified Persons report displays the Total Amount for each Ledger which is marked as Related party. The Auditor can also view the breakup of the Unaudited Amount, Amounts Not to be Reported and to be Reported.

Amount Column descriptions:

Ctrl+F9: Master

Tally.ERP 9 provides flexibility to the user to consider any Ledger belonging to any Group as Related Party. As discussed earlier the Payments to Specified persons screen will be empty by default. In order to mark the Ledgers as Related Party as per Clause 18, follow the steps given below:

To mark a Ledger as Related Party, follow the steps given below:

Note: To select more than one Ledger, press Spacebar on each Ledger separately.

Ctrl+F10: Rest Default

Ctrl+W : Audit Working Paper

Click on Ctrl+W: Audit Working Paper or press Ctrl+F10 key to view Audit Working Paper for Related Party Configuration. For more details, refer Audit Working Paper

The Payments to Specified Persons displays the list of the Ledgers marked as Related party along with the Amount and Unaudited Vouchers as explained earlier.

F12: Configure

To change the default display screen for the Payments to Specified Persons report,

 

The Payments to Specified Persons screen displays all the Ledgers as per the Groups selected by the Auditor. The Auditor can drill down to the Ledger Vouchers by selecting the respective Ledger and pressing Enter.


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