The President

The Institute Of Chartered Accountants of India


Dear Sir,

At the outset, thanks for your endeavor to provide a professional opportunity on uniform basis to the practicing chartered accountants.

Sir, Your attention is drawn towards various conditions which are not good for the overall image of the profession. I am hoping that your HIGH office will take in for questioning this matter.

Recently, OFFICE OF THE COMMISSIONER OF SERVICE TAX, AUDIT-I 17-B, IAEA HOUSE, M. G. MARG, I. P. ESTATE, NEW DELHI – 110 002 C.No. I-26(494)ST/Audit-I/Spl.Audit/17/2015, Dated: 07.08.2015 issued  NOTICE FOR EXPRESSION OF INTEREST having Sub: Empanelment of CA/ICWA for Audit of Service Tax Assessees. The said notice is having so many terms and conditions with lower fee. You are requested to see to it and if you’re good office finds it inappropriate and not commensurate with the tone of the profession, you are requested to take up the same with the concerned department. Your attention is drawn towards the following.

Objectionable Condition No. 1- On receipt of audit report, department may call the auditor for seeking any clarification or ask them to complete audit, if it is found that particular area has not been examined properly.

–      It will only result in unending process and shall always be open to receive department dictates. After filling a report our disciplinary mechanism is there in case of any deficiency.

Objectionable Condition No. 2-The Audit shall be conducted in coordination with the departmental officers. In other words, the departmental officer shall also join the audit team of the nominated CA/ICWA to conduct the audit.

–      The independence of the auditor shall be at stake. The Chartered accountant shall become a part of the department ultimately part of the games played by such departments.

Objectionable Condition No. 3- Further I am unable to understand how and on what basis or criteria are adopted for the fixation of the fees. The fees being fixed are not matching with the volume of work. How auditors can gives his true and fair view without audit and verification?  This seems the intent of the Department is to obtain certification of the records, for such depressed sum.

As per notice, The Chartered Accountant so nominated is entitled to a fees depending upon the size of the unit under special audit. As per the present guidelines of CBEC, the Amount of such fee payable is mentioned below and I have added the probable turnover of the unit to understand the devaluation of the Chartered Accountants attestation services.

Sl. No. Service Tax paid by the Unit during the 2014-15 Fee Amount Probable Turnover
( i) Up to Rs. 10 Crore Rs. 15,000/‑ Say Rs. 81 Crore
(ii) Rs. 10 Crore to Rs. 100 Crore Rs. 25,000/‑ Say Rs. 810 Crore
(iii) Rs. 100 Crore to Rs. 200 Crore Rs. 35,000/‑ Say Rs. 1620 Crore
(iv) Rs. 200 Crore and above Rs. 50,000/- Say Rs. 1620 Crore Onward

 You are requested to see to it and take up with the appropriate authorities.


(About the Author– Author was Member of ICAI- Regional Research Committee 2013-14 and ICAI- Committee For Direct Taxes 2011-12 and can be reached at email or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA)

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