Cost accountants fear their profession may become redundant as the budget has allowed chartered accountants to do excise audit, which was their exclusive domain.
“Allowing chartered accountants to conduct excise audits under sections 14A and 14AA of the central excise act is unfair and an unjustified move, which discriminates against cost accountants, ” Kunal Banerjee, president of the Institute of Cost and Works Accountants of India, told News.
He said the Finance Bill had sought to dilute the expertise of cost accountants, whose role had been well defined by Parliament in the cost and works accountants act.
“Audit under sections 14A and 14AA were till now the exclusive domain of cost accountants as these special assignments require particular expertise relating to the application of cost accounting principles and techniques,” Banerjee said.
The audit under section 14A of the central excise act relates to the valuation of goods for the purpose of the levy of excise duty. The audit under section 14AA relates to the utilisation of Cenvat (central value added tax) credit.
He said that if the intention of the legislature was to equate both professions on an equal footing, “cost accountants should immediately be recognised under the definition of `accountants’ in section 288 of the income tax act”.
“Financial audit and income tax audit, which are important areas for a companies audit, are already with chartered accountants. Why are they being allowed to enter the small exclusive domain of cost accountants? ” said Banerjee.
Cost audit is a mechanism to provide assurance about the integrity of cost information to regulators and government departments.
Auditing under section 233(B) of the Companies Act 1956, excise audit under Section 14A of the central excise act and special audit under section 14AA of the central excise act are the main revenue generating areas for cost accountants.
importance of icwa
can icwa can do excise audit or not
Which wrong decision from the Government to allow the Chartered accountant to do the Audit u/s 14a & 14aa
Our Indian Government should encourage all the cost accountants as well as Students those who are pursing ICWA by extending Cost Accountants Scope of Activities instead of Pushing down the Cost Accountants range among the Accountant Society. Government should immediately amend the “Definiton of Accountant” U/S 288 of IT ACT & recognise Cost Accountants also.
So now the cost accountants should also be allowed statutory audit as well….and the powers of both should here by be merged …
i think Cost Accountant is more important than chatered accountant in the world in respect of deduction cost , to protect world from the recesson.The field of icwa is applicable in all area , even in our daily life .
ICWA will be more successfull than ica if the Indian Govenmet express his help hand .
I think govt and bureaucrats don’t pay any heed to ICWAI’s demands. ICWAI is demanding for inclusion of Cost Accountant in the definition of ” Accountants”
of the IT Act since long, but no positive response made till date.
No, it’s not an issue of fear. It’s a issue of discrimination but there must not have any discrimination. Hence, Government should immediately amend the definition of “accountants” u/s 288 of The Income Tax Act and recognise Cost Accountants aslo.
it is unfair move by central government, eventhough we are facing severe problems in regards to SATYAM CASE , so much of blind belief on charted accountants is no advisable