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The Council of the Institute of Chartered Accountants of India has been concerned with the difficulties being experienced by the tax auditors in the e filing portals. In this regard, various efforts were made through written representations, personal meetings and also by way of capacity building measures of the members. While this is an ongoing exercise, some of the important steps taken are listed here under for the benefit of the members:-
| A. Submission of representations to CBDT | |||
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1. |
Submission of a detailed list of issues being faced by members in registration and e-filing of tax audit report to DGIT(Systems) |
14.08.2013 |
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2. |
Considering the frequent changes and errors in e-filing utility, a representation was made for extension of due date of furnishing the report u/s 44AB, 92E of the Income-tax Act, 1961 and extension for e-filing of Income-tax Returns |
13.09.2013 & 24.09.2013 |
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3. |
Submission of a detailed representation to CBDT regarding Order F. No. 225/117/2013/ITA II dated 26th September, 2013 with specific mention of the following concerns along with a request for extension of due date:
a) Difficulties in manual furnishing of audit reports b) Issues faced in e-filing of audit reports and Income-tax Returns c) Civil Disturbances in States of Andhra Pradesh, Uttar Pradesh and Natural calamities in States of Gujarat and Uttarakhand d) Steps taken by the ICAI to support the e-filing initiative of CBDT |
27.09.2013 & 30.09.2013 |
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4. |
Request to consider difficulties faced in uploading the audit reports and returns on 30.09.2013 due to technical snags and the difficulties faced by assessees in state of Uttarakhand |
01.10.2013 |
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5. |
Request to issue a circular not to initiate penalty proceedings under section 271B in cases where audit reports have not been filed manually before 30.09.2013 but have been e-filed before 31st October, 2013 |
03.10.2013 |
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| B. Meetings with Departmental officials | |||
| 6. | Meeting with Joint Secretary, TPL-II to find suitable solution to the difficulties being faced in e-filing of Form No. 3CA/3CB & 3CD. An Illustrative list of difficulties being faced by members in e-filing of tax audit report was also submitted. |
03.06.2013 |
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| 7. | Meeting with Addl. DIT(Systems) to further raise the concerns of the members regarding difficulties being faced in e-filing of Form No. 3CA/3CB & 3CD |
05.07.2013 |
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| 8. | Submission of request to Addl. DIT(Systems) to look into the difficulties being faced by legal heirs in filing return of the deceased assessees |
18.07.2013 |
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| 9. | Meeting with Addl. DIT(Systems) to find solution regarding further practical issues being faced by members in e-filing of tax audit reports |
26.08.2013 |
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| 10. | Meeting with Addl. DIT(Systems) where several issues were again brought to his notice and a request was made to extend the due date of furnishing the tax audit report and report u/s 92E |
18.09.2013 |
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| 11. | Meeting with CBDT members, namely, Member (IT), Member(Inv.), Member (A&J) for considering the request for extension of due date of filing of tax audit report and Income-tax Returns |
24.09.2013 |
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| 12. | Meeting with Member (IT), CBDT requesting him to consider the practical difficulties in complying with the CBDT’s Order F. No. 225/117/2013/ITA II dated 26th September, 2013 along with the request for extension of due date of filing of tax audit report and Income-tax Returns on 27.09.2013 |
27.09.2013 |
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| 13. | Meeting with Revenue Secretary to pursue the practical difficulties in complying with the CBDT’s Order F. No. 225/117/2013/ITA II dated 26th September, 2013 along with a strong request for extension of due date of filing of tax audit report and Income-tax Returns. |
30.09.2013 |
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| 14. | Meeting with Member(IT) & Member (Inv.), CBDT requesting for issuance of a circular not to initiate penalty proceedings under section 271B in cases where audit reports have not been filed manually before 30.09.2013 but have been e-filed before 31st October, 2013 |
03.10.2013 |
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| C. To facilitate smooth e-filing of audit reports | |||
| 15. | ICAI had organized a LIVE Webcast on ‘Facilitating e-filing- Issues and Resolutions” on 29.08.2013 with the officials of Directorate of Income-tax (Systems) which was attended by approximately 6000 chartered accountants | ||
| 16. | Frequently Asked Questions (FAQs) on e-filing of tax audit reports were developed in consultation with the Directorate of Income-tax (Systems) for guiding the members in certain important matters. The said FAQs were posted in ICAI’s website on 6.09.2013 and were also been mass mailed to all members for their guidance | ||
| 17. | Resolution of issues faced by members while registration in e-filing portal as “Tax Professional”. | ||
| 18. | Resolution of queries over telephone and/or via e-mails and e-sahaayataa portal to facilitate registration in e-filing portal as a “Tax Professional” wherever the issues were faced by members. | ||
| 19. | On regular basis issues being faced by members/assessees were brought to the notice of appropriate authorities for suitable solution. | ||
| D. To guide/spread awareness among its members | |||
| 20. | Release of Revised 2013 edition of the publication “Guidance Note on tax audit under section 44AB of the Income-tax Act, 1961”; | ||
| 21. | Release of Revised version of “Guidance Note on Report under Section 92E of the Income Tax Act, 1961” to specifically include the reporting requirement of specified domestic transactions | ||
| 22. | In order to make the members in small towns or moffussil areas aware of the e-filing procedures, Direct Taxes Committee of ICAI requested all branches to conduct Tax audit awareness programmes all over India | ||
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It is fact, only CAs are not facing problem but still department is not sure how to get information from practicing CAs on behalf of clients due to such reason department is making regular amendment. in spite of other thing it is a time consuming procedure and way of audit online filling. CBDT is also need to improve its format as ICAI also need to aware its members through seminars and programms.
Dear Friends,
Now 30th Sept 2013 is HISTORY.
The deptt. may impose penalty or may not. We can fight through APPEALS.
SOME OF THE FOLLOWING REALITIES ARE TO BE BORNE IN MIND AND ICAI on behalf of
practicing CHARTERED ACCOUNTANTS SHOULD sincerely try the following:
1.ICAI SHOULD KNOW THE GROUND REALITIES AND SHOULD INVITE SUGGESTIONS FROM MEMBERS .
2.WHAT ARE THE PRACTICAL DIFFICULTIES FACING BY CA IN CONDUCTING STAT.AUDITS LIKE AUDIT U/S 44AB,UNDER COs Act ,BANK BRANCH AUDITS etc etc.
3.ICAI IS EXPECTING A LOT FROM CAs ,THOUGH WE ARE INTENDED TO DELIVER QUALITATATIVE AUITS ,WE ARE FAILING to some extent DUE TO TIME CONSTRAINTS.Dont WE NEED MINIMUM TIME TO CONDUCT AUDITS KEEPING IN MIND VARIOUS ACTS,AS 1 TO 29,etc etc.
Usually, when our auditee submits his books of account, inspite of our demand to submit books for audit at least 2 to 3 months before 30th sept ,they submit in the month of SEPTEMBER THAT TOO IN LAST 2 WEEKS.
4.HOW CAN CA AUIDIT AROUND 20 TO 45 AUDITS IN LESS THAN 30 DAYS.?
5.ONLY AROUND 2O% OF AUDITEES SUBMIT EITHER IN JULY OR AUGUST.OTHERS ONLY IN THE MONTH OF SEPTEMBER.
I FEEL ,SOME OF AUDITEES INTENTIONALLY SUBMIT IN LAST WEEKS OF SEPTEMBER.THEY DONT WANT THOROUGH EXAMINATION OF BOOKS OF ACCOUNT.
6.IF AUDITEE SUBMITS IN THE MONTH OF JUNE OR JULY,WE CAN AUDIT THOROUGHLY AND BE READY WITH FINANCIAL STATEMENTS AND FORM 3CB/3CA AND FORM 3CD.
AND WE CAN FILE WELL WITHIN DUE DATE.
BEING OUR BOSSES(ie AUDITEES), we are forced to accept assignments even if they submit in the last weeks of September.THEN WE REQUEST OR EXPECT FOR EXTENSION OF DUE DATES.I KNOW THE PROBLEM IS DIFFERENT THIS YEAR.
7.I CALL AUDITEES AS BOSSES BECAUSE THEY ARE BOTH APPOINTING AUTHORITIES AND ALSO PAYING AUTHORITIES.FOR RIGHT KIND OF INDEPENDENCE ,THE PAYING AUTHORITY AND APPOINTING AUTHORITY SHOULD BE DIFFERENT.
AND ICAI SHOULD TRY & SEE THAT AUDITEE SHOULD NOT HAVE CHOICE OF APPOINTING “HIS” AUDITOR.SOME THIRD PARTY SAY ICAI OR ITD/CLB SHOULD APPOINT US TO CONDUCT TO STAT.AUDITS. AN AUDITOR SHOULD ALWAYS BE STRANGER TO AUDITEE.
8.TO MAKE AUDITEES KEEP & MAINTAIN BOOKS OF ACCOUNT ON DAY TO DAY BASIS ,IT LAW SHOULD BE AMENDED & MAKE AUDITEES FILE UNAUDITED FINANCIAL STATEMENTS ON OR BEFORE 31ST MAY OF EACH YEAR. THIS WILL MAKE THEM TO MAINTAIN ACCOUNTS ON DAY TO DAY BASIS.
THIS ALSO CREATES LOT OF JOB OPPORTUNITIES FOR Bcom Graduates or to semi qualified CAs.WE CAN EXPECT BETTER ACCOUNTS FOLLOWING AS ,MERCANTILE PRINCIPLES,CAPITAL & REVENUE DIFFERENTIATION etc etc.
Presently accounts are maintained, not on day to day basis and that too by anyone who knows some accounting package.Mostly they are all part time accountants.And business men are also not literate with accounting principles,they do not take care to collect & preserve proper evidence.Mostly these part time accountants concentrate on MAINTAINING PURCHASE /SALES & filing of VAT monthly returns.
8.IF AUDITEES ARE MADE TO FILE UNAUDITED FIN.STS BY 31ST MAY.WE WILL HAVE WORK EVENLY SPREAD THROUGHOUT THE YEAR AND NOT IN THE MONTHS OF AUG OR SEPT.AND WE CAN ATTEND TO FAMILY MATTERS & PLEASANT TIME EVEN IN THE MONTHS OF AUG & SEPT.
9.AS AUDITEES ARE FORCED TO FILE UNAUDITED FINANCIAL STATEMENTS BY 31ST MAY,
THEY MAY ENGAGE CAs as INTERNAL AUDITORS TO LOOK AFTER ACCOUNTS AND TO FILE UNAUDITED STATEMENTS BY 31ST MAY.
10.THIS WILL DO THAT AUDITOR WORK BEGINS WHERE ACCOUNTANT WORK ENDS.
11.THIS WILL ALSO GIVE LESS OPPORTUNITY TO AUDITEES TO MANIPULATE ACCOUNTS.
12.THIS WILL MAKE US TO CONCENTRATE AND REPORT ONLY ON ALREADY PRESENTED ACCOUNTS.
13.THIS GIVES LOT OF INDEPENDENCE AS OUR DUTY IS ONLY TO COMMENT ON ACCOUNTS ALREADY PRESENTED TO GOVT.
14.THIS WILL ALSO BRING DIGNITY TO OUR PROFESSION.
I HOPE ,WE ALL TRY FOR BETTER ENVIRONMENT TO CONDUCT AUDIT ,EQUAL OPPORTUNITIES BASED ON SIZE & NO OF YEARS EXPERIENCE etc etc.
Why the ICAI body clarified their stands to day( 05/10/2103 ) ? Why they are unable to convinced All the top IT department officials ? Is not the case of inefficient Councils Members who does not able to convince the IT department, when sufficient/ valid reasons are there for e-filling system . Why they have not taken steps earlier ? Simple writing to the CBDT on 26/9/2013 for extension of date to 31/10/2013 are sufficient ? We are being neglected by All regulators where our services are needed . Now clients will take the advantage of this. Why so many seminars / conferences / Telecasts / Teleconferences ? Guidance note etc . is require for tax audit e -filing ?
Why the Delhi Chartered Accountants Association have taken steps ? Their action is very much appreciable.
CA. Subhash Chandra Podder, FCA
Kolkata
05/10/2013
Dear Sir, This is very serious problem and even if after so much persuasion with all the valid reasons somebody is not listening then why ICAI should not take the course to submit a writ to Hon. High court. Here see there is a need for extension and ICAI is a regulatory body for this profession and should be considered better judge in this type of situation then the biggest question is that What Next?? There will be more crucial situations like this in the future when the reasonable requirements will not be fulfilled by the authorities then what is the solution left with the ICAI??
GOOD EFFORTS. BUT TAX AUTHORITIES ARE NOT LISTNING !
SO FURTHER STARTEGY NEEDED.
Whether this an face saving attempt by ICAI…?
Really sorry to observe that govt officials are dealing with a regulator in such a manner. Never heard of this type of action by government authorities particularly against our great institute.The authorities must learn to respect the regulator, who is in a better position to understand the problems and must not treat them as trade union.
In spite of the sincere efforts taken by the ICAI not only in persuading the Department to extend the due date but also in updating the CAs of the new complicated procedures,’Why the Authorities concerned are not impressed?’ and ‘Why they have failed to understand the difficulties?’ are the questions lingering in the minds of CAs.