Form 3CD Clause 41 Working Paper Format 2026
FORM 3CD CLAUSE 41 — DEMANDS AND REFUNDS UNDER OTHER TAX LAWS WORKING PAPER
Assessee: {{client_name}} · PAN: {{client_pan}} · Previous year ended: {{period_end}} · Assessment Year: 2026-27
What the clause asks: details of every demand raised or refund issued during the previous year under any tax law other than the Income-tax Act, 1961 and the Wealth-tax Act, 1957, along with details of the relevant proceedings. The test is the date of the demand or refund order — it must fall in the previous year — and not the period to which the tax relates.
1. Laws and registrations covered
| Law | Registration no. / jurisdiction (one row per GSTIN or State) | Any demand order in the year? (Y/N) | Any refund order in the year? (Y/N) | Source checked |
|---|
| Goods and services tax (CGST / SGST / IGST / UTGST / compensation cess) | | | | |
| Customs | | | | |
| Central excise and service tax (legacy) | | | | |
| State VAT / sales tax / entry tax (legacy) | | | | |
| Profession tax | | | | |
| Other tax law: ____________ [e.g. State excise, stamp duty, property tax — decide and record whether treated as a tax law for this clause] | | | | |
2. Demands raised during the previous year
| Sr. | Law and State | Period to which the demand relates | Order / demand reference and section | Date of order | Authority | Tax ₹ | Interest ₹ | Penalty ₹ | Status of proceedings (paid / appeal filed, forum and date / stay / pre-deposit) | Evidence ref. |
|---|
| 1 | | | | | | | | | | |
| 2 | | | | | | | | | | |
| 3 | | | | | | | | | | |
| 4 | | | | | | | | | | |
| 5 | | | | | | | | | | |
3. Refunds issued during the previous year
| Sr. | Law and State | Period to which the refund relates | Refund order reference | Date of order | Authority | Amount sanctioned ₹ | Adjusted against demand ₹ | Received in bank ₹ and date | Accounting treatment | Evidence ref. |
|---|
| 1 | | | | | | | | | | |
| 2 | | | | | | | | | | |
| 3 | | | | | | | | | | |
| 4 | | | | | | | | | | |
- A demand is "raised" when an order or notice of demand creating a liability is issued. For GST that is the adjudication order and its summary (for example, Form GST DRC-07), not a show-cause notice or its summary (Form GST DRC-01). Show-cause notices pending at year-end are tracked in the file but are not demands for this clause; where the firm’s policy is to mention them, do so in remarks and label them clearly.
- Report the full demand — tax, interest and penalty — even if it has been paid, stayed or appealed. Give the appeal forum, date of filing and pre-deposit in the proceedings column.
- Report a refund when the refund order is issued in the previous year, whether it was paid into the bank or adjusted against another demand, and whatever period it relates to. Export and inverted-duty GST refunds sanctioned in the year (for example, in Form GST RFD-06) are refunds for this clause.
- An appellate order that reduces or cancels an earlier demand is not itself a new demand or a refund; mention it in the proceedings details of the original item.
- Cover every registration: each GSTIN in each State, each customs port or IEC-linked location, and legacy VAT and service-tax registrations with open matters.
- The clause calls for facts. Do not express a view on whether the demand is sustainable.
4. Evidence to obtain
- GST portal: orders and notices under "View additional notices/orders", the electronic liability register (Part II for demands), and refund application status with sanction orders, for every GSTIN.
- Customs: orders-in-original, demand notices, and refund or drawback sanction orders; ICEGATE ledger where used.
- Legacy laws: assessment and appellate orders under State VAT, central excise and service tax issued during the year.
- Legal and litigation register, appeal memos, stay orders and pre-deposit challans.
- Ledger scrutiny of rates and taxes, legal fees, "tax paid under protest", refund receivable and balances with government authorities; bank statements for refunds credited.
- Board or audit-committee papers on tax litigation, the contingent-liability note and the CARO clause on disputed statutory dues, where applicable.
- Management representation that the list of demands and refunds is complete.
5. Common errors
- Writing "Nil" on management’s word without looking at the portals.
- Reporting by the tax period instead of by the date of the order — leaving out an order passed this year for an old period, or including an old order because it is still under appeal.
- Reporting only unpaid demands, or only the tax and not interest and penalty.
- Leaving out refunds, especially routine export refunds and refunds adjusted against demands.
- Covering the principal GSTIN and missing other States.
- Reporting show-cause notices as demands, or not reporting an adjudication order because an appeal has been filed.
- A clause 41 list that does not agree with the contingent-liability note or the CARO reporting on disputed dues for the same year.
6. Flow to the return of income
Clause 41 is a disclosure; nothing from it is carried into the computation by itself. It has three links that should be checked: (1) a demand of tax, duty or cess debited to the profit and loss account is deductible only on payment under section 43B — carry unpaid amounts to clause 26, and report any penalty included in it under clause 21(a); (2) a refund of a tax or duty that was allowed as a deduction in an earlier year is taxable under section 41(1) in the year of receipt — see that it is credited to income and reflected in clause 25; (3) demands disputed and not provided for should appear in the contingent-liability note and are not reported under clause 21(g) unless debited to the profit and loss account.
Conclusion: demands raised during the year — number ____, amount ₹ ____________; refunds issued during the year — number ____, amount ₹ ____________. Registrations and portals checked: ____________. Limitations: ____________.
Prepared by: {{prepared_by}} Reviewed by: Date: 1 October 2026
