Q. Consider the following statements regarding Unique Document Identification Number (UDIN):
1. UDIN is mandatory for every kind of certificate/tax audit report.
2. Director Identification Number (DIN) system is being executed in both direct and indirect tax administration in India.
Which of the above statements is/are correct?
Answer: C
Notes:
About Unique Document Identification Number (UDIN):
- Finance Ministry has said, CBDT will validate Unique Document Identification Number (UDIN) generated from ICAI portal at the time of upload of Tax Audit Reports.
- Unique Document Identification Number (UDIN) is a unique number given to documents attested by Chartered Accountants. It is an 18 digits system generated unique number which shall generated separately for each document.
- Institute of Chartered Accountants of India (ICAI), in its gazette notification dated 2nd August, 2019, had made generation of UDIN from ICAI website mandatory for every kind of certificate/tax audit report and other attests made by their members as required by various regulators.
- This was introduced to curb fake certifications by non-CAs misrepresenting themselves as Chartered Accountants.
- This measure would create a digital directory for maintaining a proper audit trail of such communication. Importantly, it would provide the recipients of such communication a digital facility to ascertain their genuineness.
- Though DIN is mandatory requirement, still in exceptional circumstances communication may be issued without an auto generated DIN. However, this exception is to be made only after recording the reasons in writing.
Source: ForumIAS
