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Standing Committee on Finance recommends inclusion of cost accountant in the definition of ‘accountant”

Mr.Gopalakrishnan said that the Standing Committee acknowledges the representation received from The Institute of Cost Accountants of India demanding the changes in the definition of Accountant and the request for inclusion of Cost Accountant in the Accountant definition. The Institute feels this that this is a very important step which will enable the wider inclusion of related professionals in the definition of Accountant as compared to the strict interpretation as has been done in the past.

Standing Committee on Finance recommends widening the scope of the definition of ‘accountant”. Mr. M.Gopalakrishnan, President of The Institute of Cost Accountants of India, announced, that the cost and management accounting profession, is getting its due recognition in the Direct Taxation areas , as accepted by the 49th Report of the Standing Committee of Finance chaired by Honourable Shri.Yashwant Sinha ji., M.P. The Standing committee has recommended to the Ministry of Finance to “The Ministry may therefore re-consider the suggestion to widen the scope of the definition of “accountant”, in their report.

The Committee also observed that the Ministry’s reasoning for non-inclusion of related professionals in the definition of accountant is a very strict construction of the term. He also informed that the Standing Committee has also recommended that in case of “special audit for inventory valuation in doubtful cases by the Department is concerned, the same can be done later under the Rules”.

Mr.Gopalakrishnan said that the Standing Committee acknowledges the representation received from The Institute of Cost Accountants of India demanding the changes in the definition of Accountant and the request for inclusion of Cost Accountant in the Accountant definition. The Institute feels this that this is a very important step which will enable the wider inclusion of related professionals in the definition of Accountant as compared to the strict interpretation as has been done in the past.

The Institute is of the view that members of the Institute of Cost Accountants of India (ICAI) are also predominantly engaged in all financial matters, preparation of financial ledgers, books, records and statements of a company or firm and not restricted in their work. In addition, as per clause 31 of the DTC, while dealing with the “Business when treated distinct and separate”, segmental reporting including the ascertainment of cost and profitability ensures the correctness of the productwise, unit-wise profitability becomes an aspect which is the core domain of the Cost Accountants. Therefore, it is felt that the Government should accept the recommendations and views of the Standing Committee.

Source- THE INSTITUTE OF  COST ACCOUNTANTS OF INDIA

Categories: CA, CS, CMA

View Comments (11)

  • why only tax audit company audit vat audit can also be done by cost accountant and company secretary.then why to have three different professions.make three of them as one institution.

  • CA's expect that no one should make inroads into their profession but they can make inroads into others profession and snatch other professionals exclusive work. Recent eg: Excise Audit u/s 14 & u/s 14 A which was once exclusive area of Cost Accountants. They also intervened in ICWAI Name change and did not allow govt to effect the name to ICMAI.This kind of lobby and monopoly is not healthy for the Industry and their monopoly should be broken.

  • Not only Cost accountant and company sectratory but also advocates can also be allowed to do tax audit, tax audit is not a big deal. it can be conducted by any of the 4 professional, CA,CMA, CS and Advocates

  • It seems a non-sensible talk by Mr Lakshmanan. Perhaps he is out of the current affairs now. or could not be successful in CMA Examination. Though I am very much regarrdful on CA profession. I know if I respect other then only I may expect it from others.

  • DEAR SIR, ARE CA FEAR TO LOOSE THEIR DADAGIRI IN ACCOUNTING FIELDS? IF NOT WHY THEY CREATE OBSTRUCTION TO INCLUDE CMA AND CS IN ACCOUNTANT
    DEFINITION ? COMPETITION SHOULD BE START IMMEDIATELY.

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