In India, Institute of Company Secretaries of India, Institute of Cost Accountants of India, Institute of Chartered Accountants of India and Bar Council of India are the four professional bodies passed by an Act of Parliament, whose members are engaged in the line of tax practice. They should shed off their own narrow mindedness and come out of their cocoons and think of the country’s interest. Each one trying to desperately fend off others from what they think is their own sacred area.
Certificate from only Chartered Accountants U/s 44AB introduced in Income-Tax Act in 1984, Since then, CA certificates started entering Income-Tax Act. On date there are 46 plus CA certificates in Income-Tax Act, which is also inherited in draft Direct Taxes Code, 2010. These CA certificates barricade support for voluntary compliance from Non-CA Tax Professionals and new Non-CA Tax Professionals are not entering tax profession. CA certificates are causing strict hurdle for voluntary compliance not only in Income-Tax Act, but also in other Central and State Govt. tax laws (Ex:- In Finance Act, 2012 negative list introduced in Service Tax requiring the assistance of more tax professionals, but number of tax professionals are stand still on date). Tax audit data provided by CBDT has been published in CA Club Website on 16.11.2011. Herein, it is evident that only 59,472 Chartered Accountants are practicing tax law throughout India. There is ceiling of 45 tax audit assignment to be undertaken by each CA, irrespective of Corporates or Non-Corporates. In latest e-filing website of Income-Tax Deptt. only CA’s are treated as Tax Professionals, now existing Non-CA Tax Professionals will also dropout from tax profession and Govt. has to relay on only 59,472 CA’s for seeking compliance U/s 139 of Income-Tax Act.
World over functions of Accounting are classified depending on the area of operation, application and usage. They are as under:-
Cost Accounts > Manufacturing/Processing Activity
Financial Accounts > Trading Activity
Management Accounts > Management Leval/Decision Making
Management Accounts is nothing but application of Ratio Analysis and Cash Flow Statement on Cost and Financial Accounts.
By The Cost and Works Accountants (Amendment) Act, 2011, name has been changed to “The Institute of Cost Accountants of India” and the members got the power to work in the area of Management Accounts also and can re-designate themselves as ACMA/FCMA. Now, it is funny that both institutes passed by an Act of Parliament called by similar short name of “ICAI”. Of course syllabus is almost similar in all the three institutes called by different name of ICSI, ICWAI and ICAI.
In view of the above amendment, Cost Accountants now possess wide power of working in the area of Cost Accounts, Financial Accounts and Management Accounts. Whereas,Chartered Accountants are restricted to work in the area of Financial Accounts only. This being the case, I do not understand why only Chartered Accountants are authorized to conduct Tax Audit U/s 44AB of Income-Tax Act and enjoy monopoly of authority, causing strict hurdle for voluntary compliance.
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Author : B.S.K.RAO, Tax Advocate
E-Mail: raoshimoga@gmail.com
Mr Blue & Anand,
There is no doubt Reports u/s 44AB a strict hurdle for voluntarily compliance from assessee. Because due to such reports assessee everything leave on professional & there was no voluntarily compliance from assessee. And professional ask to asessee how much tax, do you want to deposit & assessee given estimated idea for that. Reason for that, assessee not understand such complicated reports. which creates problem for assessee in scrutiny of case.
Secondly if this power given to Non CA with CA’S more tax professional can effort as a worker. As like more worker of any party able to win election.
thirdly, I defiantly say that if average fee fixed from CBDT Rs. 10000 per case, which are audit able under section 44AB for inspection of books by department in case suspicious & NOT AUDIT REPORT FROM ANY PROFESSIONAL.
As per information provided on CA club india 1616096 audit report signed by 59472 CA’S. I want explain following points to increase revenue of country.
Present revenue to govt. from REPORTS U/S 44AB—–NIL
If 10000 fee charged by department 10000*1616096= 16 ARB 16 CRORE 9 LACK SIXTY THOUSAND INCOME EVERY YEAR for FY 2010-11.
If we presume average salary of Income tax employee 30000 PM annually 360000
divided by 16160960000/360000= 44891 employee get salary without put any burden on GOVT. TREASURY. I THINK TOTAL EMPLOYEE IN INCOME TAX DEPARTMENT IN INDIA. NEAR ABOUT 45000.
Dear Mr. Raghav Goyal, I am not demanding any authority to certify project reports should be given to advocates. But I am saying for which act we are not authorized not should do that work.
Secondly, you are saying Bank Authorities compel to CA’S to sign on project reports. Sir I just told you, If bank authorities said to anyone. Pl jump to in a well, pl tell me then any wise person would do that work, defiantly not. so for pl not blame to authorities.
thirdly I want to explain, on behalf of project reports, bank financed to borrower which is a valuable security. Any document used to get such finance not biased on actual facts is crime under IPC section 467,68 &71
I want to told my CA friends not do that work, which work can create problem for u & It is not only for CA’S but to other professionals.
I don’t want to hurt anybody but I want aware my friends to avoid such works
sir in next comment I will answer BLUE & ANANDS question
Dear Parveen Kumar CA
I appreciate your reply but I explain these points again for those members who are doing such kinds of work.
Thanks for u r reply
Balu & Anand Sab,
Even though person related or regularly employed by the assessee & officer of the scheduled bank with whom assessee maintain the account are allowed to represent assessee U/s 288(2) of Income-Tax Act, only Legal Practitioners, Cost Accountants, Company Secretaries & CA’s are allowed to prepare the return and furnish report on examination of assessees books of accounts & documents under Rule 12A of Income-Tax Rules, 1962. Rule 12A inserted vide Notification No.2029 dated 13.6.1962 & authorizes all such tax professionals to furnish certificate or report in the process of assessment, what was the necessity to introduce Section 44AB under Income-Tax Act, 1961 in 1984 ?
Fully agreed with Balu & Anand.
Not only BSK Rao ji but all other advocates commenting here should give the answers to the points raised by Balu & Anand.
Only then they should say that authorizing advocates equivalent to CAs would raise Revenues of the Government.
Sh. Mandeep Singh Ji,
By mentioning the works done by CAs, out of their professional limits, you have shown your personal animosity with the CA degree.
If you are so opposed to such kind practices by CAs i.e. signing the project reports, valuations, etc, etc, THEN FIRST BLAME THOSE AUTHORITIES WHO THEMSELVES ASKS THE PEOPLE TO GET THE CERTIFICATES ATTESTED FROM CAs AND NOT FROM ANY ADVOCATE or any other like professional.
THE GUILTY WOULD NOT BE THE CAs BUT ONLY THOSE AUTHORITIES WHO RELIES ONLY AND ONLY ON CAs AND NOT ON ANY ADVOCATE or any other like professional.
Thus, I would advice you to first catch those authorities and ask them to consider advocates as equally competent to CAs.
And please please please, do tell us what they replied.
Dear Mr. Rao before looking quantum of Certificate to be signed by CA first look at the vast syllabus, level of exam and knowledge of CA.
Still if you have any doubt at least appear once in CA exam. Exam result will give you the best answer. Then compare CA with anyone else.
CA Sandeep Khare
Without getting personal let us face some pertinent and relevant questions. When we say some CAs as Arrogant it only reflects the mindset of hatred they have developed towards other sister professionals like CMA, CS and Advocates. In this forum the comments of Balu & Anand and others to state that CMA and CS are part time course reflects that mindset. Forget the experience of that mindset in work place and in practice. Now some body states Industrialist’s preferred professional is CA when it comes to TAX and FINANCE. If true this is due to the power entrusted on CAs and the hype created as a result. There are many reasons for such choice. In most companies the accounts and finance is headed by CAs. Obliviously their preference will be their alma mater. When the comments pointing the loopholes in the present system is made which harms the interest of CAs such comments become derogatory!! And moderator is blamed for that!! Even freedom of expression needs to be suppressed by some CA sympathizers. Please note this is not at for ALL CA fraternity but those who degrade other professionals (Non-CAs) and does not have an iota of respect for other institutes.
Mr.U.D.Venkatesh,
Our professionalism has nothing to do with tax evaders. Like the Non-CAs doing marketing for their work, we are not allowed to do so. All tax payers need not be covered under the 44AB. Your statistics of little over 2% of population under the tax net clearly states that many of us are not at all paying tax / filing returns. Our duty is to guide the clients in the right way to plan and pay taxes. One of our member was murdered by a Company for refusal to sign Audit report which was against the interest of our nation. This is a reported case and there are unreported cases too.
Most of choose CA profession, They are doing work of accountancy & do work of other profession which are mentioned below:
Practice of Law- Advocate profession on mere word appearance u/s 288 of IT act
1961.
MBA Profession – By signing projects.
Architect – To certify value of buildings & other assets.
Market Surveyor- Certified future sale & Purchase of business & other works etc.
Such things only happen due to political support.
Main statutory Reports u/s 44AB which are strict hurdle to increase revenue of country. If all thinks happen, then political backup couldn’t be denied.
If, 46 Certificates/Reports in Income-Tax Act might not have been confined only to one class of professionals since 1984, Indian Govt. revenue collection might have gone up to not less than 10 folds the prevailing collection, direct taxes in particular.
The statement by CA Lakshamanan is fundamentally wrong. THe time commuitment requirement for CA, CS & CMA is very similar. The only difference is the duration of articleship. I think for CA it is three years and for others it is 1.5 to 2 years.
CA. M. Lakshmanan
Dear Lakshman Sir, Article is well supported by documentary evidences furnished to the moderator of the blog & what prashant said is the reality of the issue.
Then, why you feel angry about the article
All are concerned about their degrees and courses.
Nobody is taking about what an industrialist wants from a professional.
But, if u ask any industrialist, he would always feel delighted to appoint CAs to handle his TAX and FINANCE matters rather than an advocate.
But when it comes to courts matters ONLY THEN an industrialist has to willingly-unwillingly move to an advocate.
Anyways,
we are fully agreed with CA. Jignesh Thumar ji and CA. Pravinkumar ji.
CA.PRAVINKUMAR.A Sir,
What professional quality Sir. Since 1984 till date, there is no single instance to show Certificates/Reports in Income-Tax Act have assisted assessing officers to generate revenue, rather it barricade support for voluntary compliance by Non-CA Tax Professionals. That is why in India only little over 2% of population are under the tax net, whereas in developed countries 70% to 80% of populations are under the tax net. Extra revenue generated in the process of scrutiny (Deptt. Audit)/Survey/Search conducted by assessing officers of Income-Tax Deptt.
Dear All,
Now the topic is moving to CAs and Non-CAs. Some of the comments from CAs are why despite having all 3 qualifications most of them choose to practice as CA. The answer is the availability of lucrative remunerative scope due to statutory backing. The moment Cost Audit and Secretarial Audit become compulsory for all India Inc. like statutory financial audit and earmark exclusively to CMAs and CS, those having multiple qualifications seriously consider practicing as CMA or CS. The point is in India those having statutory backing eats the cake. Let us put forth in this way. Honestly those are having multiple qualification cannot say this for sure. They must have faced the same easiness/difficulty in clearing all the 3 exams. The reason is the syllabus content of 3 institutes are more and less same except some variation of weightage for 2 or 3 subjects and preparation of any 1 exam complement the preparation for rest 2. In 1990s about these 3 exams it was believed and felt by most students that passing CA inter and ICWA final is a Hercules task. Without allowing a level playing field one should not ridicule others…
Res. Tax practitioner many of practicing C.A. having all three degrees still we are practicing as a C.A. and that is strongly enough reason to your reply. all the management colleges have similar study material why still few like IIMs and other are highly recognized and only their students get good jobs. Its a matter like why M.B.B.S. can not make surgeries like M.S. or M.D.
sir as per my opinion if accounting system will be simple instead of complicated reports which create strict hurdle in voluntarily compliance from assessee. decreasing the revenue of government as well creates problem for assessee, because moreover cases are selected from audit cases.
Faith of department also decreasing day by day from reports u/s 44AB.
I agree mr BSK RAO Advocate if more Non Ca tax professional in this filed will definitely increase revenue. Because more tax professional will be workers for government to collect better revenue.
Except all Firt Assessees favour for this purpose section 44AB should be deleted.
Resp Dear Non CA Tax Practioners, If U go thru the academic course pattern of CA & thereafter passing of CA, mandatory training thru CPE Hours by ICAI, u will certainly satisfy that why the Govt / Banking / other authorities are relying on the work of any CA than others. ICAI made us ready for market & provide better services in any area.
Resp Non CA Practitioners, if u see academic course of CA & thereafter training prog made compulsory thru CPE, u will surely satisfy that efforts taking by ICAI to make all its members to update in all areas are very best & hence perhaps Govt is having much faith to have work done by ANY CA rather than any body.Quality survives. “ICAI moving the Nation Ahead.”
Sh. B.S.K. Rao ji,
You seems to be more concerned about the society. We appreciate it heartily.
One thing you should add to your demand that Advocates should also be given powers & authorities SIMILAR TO A JUDGE OF HIGH COURTS & SUPREME COURT.
By doing this a great relief to the society could be brought. Because, then public would not have to resort to courts and undergo tedeous and long time taking procedures. Public would just have to go to an Advocate’s office and ask for justice even in the cases like MURDER, RAPE, ROBBERY, etc, etc,.
Advocates should have the power & authority to write even the death sentence in his office.
This could bring a great relief to the society.
If you could bring such kind of relief to the people of India then I would stand with for your all other demands.
In order to propagate Income-Tax law, it requires more tax professionals like that of party workers for canvasing vote for political parties.
Just by framing tax laws, revenue can not be collected. Here, author highlighted that only 59,472 practicing CA’s of India can not propagate Income-Tax law through out India to attract voluntary compliance for increasing genuine tax base of assessees
Sri BSK Rao, I appreciate your initiative in taking up a bonafide issue
in the interest of assessees under Incometax Act to make meaningful discussion and enlighten on unnecessary complainces under Incometax Act. Some learned friends have deviated the topic discussing the credibilities of certain professionals. On any judicial matter, whatever comprehensive submissions made on Accounts, or audit issues, or legal concepts, whether presented by a CA or Cost Actt or CS or an Advocate, it is a judicial officer in tribunal or High Court or Supreme Court, again who is basically a learned law graduate has decide and judge the matter once for all. Every profession will have its own sensibilities. It is right time to make a meaningful discussion by the Tax professionals to streamline the Income Tax proviso at least in direct Tax Code.
In the above article, author has correctly highlighted what is causing strict hurdle for voluntary compliance U/s 139 of Income-Tax Act, that has lead to stagnation of tax base in Income-Tax Act since 1984 without disputing credibility/capacity of any professionals & vesting more responsibility on Cost & Management Accountant by the legislature. But, I do not understand, why all are commenting on credibility of professionals with self appreciation.
Some of the comments in this blog does not relates to the issue raised by the author. Because, issue raised by the author is about revenue interest, but comments are showcasing the wrong pride of only CA’s. Hence, I think people commenting have not correctly understood the issue raised by the author.
In the above article author has correctly highlighted what is causing strict hurdle for voluntary compliance U/s 139 of Income-Tax Act, that has lead to stagnation of tax base in Income-Tax Act since 1984, without disputing the credibility/capacity of any professionals & vesting more responsibility on Cost & Management Accountants by the legislature. But, I do not understand, why all are commenting on the points other than the issue raised with self appreciation.
At last we take favour of assessee. Section 44AB should be omitted by finance department for individual, partnership firms & professionals to save indian assessee.
Indian assessees also have children. I urge to govt. pl delete section 44AB OF INCOME TAX 1961. So for assessee provide better maintenance to their family members.
other formalities year or two year based digital signature. It should be for whole life.
Raghav Goyal Sab,
In developed countries like Australia 70% to 80% of population are under the tax net. Whereas in India only little over 2% of population under tax net. This is because of confining certification power only to CA’s in Income-Tax Act since 1984. Because of this, Indian Income-Tax law could not be propagated well to attract voluntary compliance U/s 139 of Income-Tax Act. I am of the strong view that, it is because of monopolistic trust vested on CA’s for Audit & Certification in India.
Sh. B.S.K.RAO ji, Tax Advocate, we understand that you have read sections 145 of Income Tax Act but you may not have yet understood the spirit behind that section.
Section 145 prescribes AS-1 “Disclosure of Accounting Policies” and AS-5 “Net Profit or Loss for the period,Prior Period Items and Changes in Accounting Policies” and these standards have been FRAMED AND DESIGNED BY ICAI ONLY.
And for your kind information we would like to bring into your knowledge that books of accounts are not prepared and maintained solely for the purpose of Income tax Tax authorities. Rather books of accounts are prepared for many other stackholder like shareholders, partners, employees and labour unions, SEBI, FEMA, Investors, lenders, etc, etc, etc…..
And thus books of accounts are prepared in a standardized format so that every one can use them as per his need either it may be Income Tax Authorities or Investors or Any Other Government Bobies or any one…
Further, these INTERNATIONALLY RECOGNIZED Accounting Standards, IND ASs, IFRS, GAAPs, explanations to ASs, Guidance Notes on accounting aspects, etc., etc… provide a standardized format for preparing the books of accounts.
AND NOW,IF your point is taken that a Tax Professional need to have knowledge of only Accounting standards prescribed under Section 145, i.e. AS-1 ans AS-5 of ICAI, then how would that tax professional be able to prepare COMPUTATION OF INCOME from book of accounts which have been prepared by following internationally recognized standards.
FURTHER, Govt.s of various countries themselves have accepted and recommended the BRAND VALUE of INDAI CHARTERED ACCOUNTANTS and have authorized them to conduct the audit in there countries. But, CAs of many OF THOSE COUNTRIES are not yet authorized to conduct audit and assurance practice in India like UK or UAE.
You, being a TAX practitioner, are talking only about TAX TAX and only TAX…..But govt.s need AUDIT AUDIT and only AUDIT as far as books of accounts are concerned.
AND AUDITS CAN ONLY BE CONDUCTED BY AN EXPERT IN ALL THE INTERNATIONALLY RECOGNIZED ACCOUNTING STANDARDS, IFRS, IND ASs, GAAPs, STANDARDS ON AUDITING and MANAGEMENT PRACTICE.
AND WE HAVE FOUND ONLY and ONLY CHARTERED ACCOUNTANTS TO BE A READY-MADE PACKAGE OF ALL THESE QUALITIES.
WE SALUTE THESE CAs WHO ARE INTERNATIONALLY RECOGNIZED and RECOMMENDED TO CONDUCT ANY TYPE OF AUDIT.
why this matter is discussed here , nobody becomes CA. by birth , everyone has to pass the exam and there is no restriction that other professionals are not allowed to do CA. , many of my friends have both the qualification i.e CS and Ca. or CA. and advocate, just pass the exams and have full rights of audits. why we want to have something as granted without any hard work.
CA. Raviprakash & Pankaj Sir,
Please clarify whether CA course is a Degree, Masters Degree, Diploma, Doctorate or Job Orientation Course. In order to understand the comparison
made by Raviprakash, kindly provide classification among the following to
know who are comparable to Doctors or Nurses to understand your statement
better:-
Advocates
Chartered Accountants
Company Secretaries
Cost & Management Accountants
Income-Tax Practitioners
Venkatesh S Sir,
Kindly provide me your E-Mail address, I will give my profile & also to know
more about tax profession
Sir it is reason advocates are demanding audit u/s 44AB.
Second interesting point Chartered Accountants are certifying project reports & balance sheets. Can you tell me projections can be certified.
1) CA IS VALUER TO GIVE OPINION ON VALUE OF BUILDING OR ASSETS
2) CA’S MARKET SURVEYOR TO GIVE OPINION ON FUTURE SALE PURCHASE OF ANY
BUSINESS.
3) TO GIVE OPINION on LABOUR WILL EASILY AVAILABLE IN AREA.
4) AND OTHER NUMBER OF PARTICULARS IN PROJECT REPORT
OR
THEY FINANCIAL ACCOUNTING EXPERT. IT IS MY ADVICE PL DO THEIR OWN WORK OF ACCOUNTANCY FOR WHICH ICAI ESTABLISHED.
Dear RAJITH & CA PARVIN KUMAR chartered accountant profession is sophisticated from their main object as per explained in section 32 of chartered accountants act 1949 word “practice of accountancy”.
“Practice of Law” means given opinion on legal matters & appear before authorities or courts produce legal judgements or argue on legal matters.
members of ICAI profession based on practice of accountancy as per section 32 of chartered accountant act 1949.
ADVOCATE PROFESSION based on practice of law as per section 29 of advocates act 1961.
Pl read judgement of madars high court in A.K BALA JI case & interim order of supreme court & other number of judgements which explain u meaning the word practice of law.
It is for the single & simple reason that CA degree CAN NOT be obtained by paying suitcase full of money, whereas the same is possible for LLB degree.
Dear All,
In my opinion, the version of Mr. B.S.K. Rao has been misunderstood. The author has not questioned about the ability of C.A’s anywhere. It is not a debatable point whther C.A’s are Masters or other Professionals. What I understand from the letter of the author is since Income Tax Act is a law (I hope the learneds will defenitly understand), it is unfair to authorize only C.A’s to sign the reports since it is only certifying whether the accounts maintained by the assessee are in confirmity with the law. It is unfair and unacceptable to restrict an advocate who is specially authorized to practice any law from signing the reports for the purpose of Income Tax Act. What will be the position of C.A’s if restrictions are imposed on them from signing the P & L A/c and Balance Sheet?. Instead of calling advocates as unqualifed for the purpose of Income Tax Law, mend your mentality and think with broad mind.
siddharth jain Sab, here in the above article we deal with Income-Tax Act &
Accounting Standard prescribed U/s 145 of Income-Tax Act only. Why person
practicing Income-Tax law required to know so many complicated Accounting
Standards, which creates confusion in the minds of Tax Payer & Revenue.
This whole debate is showing the mere Indian thinking i.e. “COUNTING THE CHICKENS AND EGGS IN BASKETS OF OTHERS AND COMPARING WITH YOUR ONES.”
I can’t understand if all are so fascinated by the brand and status of CA profession then why not they all join CA course!
If CA, CS and CWA curriculum is equally challenging then why people leave CA course before qualifying and join some LL.b or CS courses?????
Being a businessman I have met and appointed some CAs, CSs and Advocates. And I personally feel that all they have their own field of specialization i.e.
CAs in TAX and FINANCE sector and
CSs in Companies Law matters and
Advocates in court matters.
In fact many of other businessmen in my circle have the same opinion.
So I’m unable to understand why Advocate Mr. B.S.K Rao has posted this article!!!
Venkatesh S Sir, if you kindly see Circular No.387, Dt.06.07.1984 1985 152 ITR, about OBJECTIVES FOR INTRODUCTION OF TAX AUDIT, you will find in Para No.17.2 that to avoid AO’s to carry out routine verification like checking correctness of total Tax Audit U/s 44AB has been introduced.
Raghav Goyal Sab, We Tax-Advocates concerned with Accounting
Standard prescribed U/s 145 of Income-Tax Act only, which presumed
to be known to all Tax Professionals covered U/s 288(2) of Income-Tax Act.
“Ignorance no excuse”
Little knowledge is disastrous. Any way your article is good for entertainment
Dear All,
CAs are not allowed to practice medicine,
CAs are not allowed to appear in Courts,
CAs are not allowed to certify secretarial complaince,
Then why many people claiming the rights of CAs without passing the CA exam? Just go and right the CA exam and pass before claiming the rights for Non-CAs. Once you pass out CA, you will realise the toughness went through by the CAs. Dont pass comments without passing the qualifications prescribed by the people’s representatives in Parliament.
And as far as certification goes. The cerficate says that accounts are maintained as per law(of his knowledge) and no deviations were found.
It doesnot mean that he is the last words when he is certifying.
In the logic of Mr. Mandeep, There is no need of judges in india.. When a Lawyer is the Know All of all Law, and when he is appearing for client, obviously his client is right and lawyer is right.. noone can question his opinion.
Right?
If not, then please understand the certification process. and why certification of 44AB(actually it is not a cerficate but a report) is done, it is just for a more expert opinion on accounts maintained.. and Chartered accountant is held responsible for his certificate if its wrong, and CA institute is very harsh on its members negligence.
Chartered accountant give cerficate for other purposes, and it is very much valid unless found completly unreliable certificate.
I donot know where advocates gets all their facts from
Mr. Mandeep
Can Please Explain the meaning of “Practice of Law”????
Is it about knowing, understanding law and see to it that clients act as per law(the thing Chartered accountants do, Chartered accoutants don’t practice law but know law and practice on accounts audits and taxataion.
No chartered accountant calls himself Tax Law Practitioner, he may call himself tax law consultant. Being a consultant and practitioner are two different things as far as my knowledge goes
And as far as The practitioner thing about lawyer goes… Let me not go into the sewage of law practice done by lawyers in india… I thing i made myself clear by not making myself clear
We cannot understand why on earth these areas are exclusively reserved for CAs. Why in a Democracy public could not have an option. In some of the comments of Supreme Court ruling in 1999 has been cited highlighting the knowledge supremacy of CAs. Is understanding Accounts, PnL, B/S and Indian AS (Copy Paste of IAS) are rocket science? This is the most hyped profession as a result we have witnessed and would see in each and every financial scam the link of a CA. They are the single most reason of generating black money in the country. This is the truth whether you accept or not. CAs may dispute saying these are one off cases. If their training pattern of 3 years article ship and examination style make them superior let us also state the same (the rigorous exam evaluation pattern, syllabus coverage etc.. of CMA and CS where pass % is 5 for CMA and CS unlike CA where its 18%) for CMA and CS. Without giving an opportunity how come one say only CAs are capable and other professionals are not. In employment both CMA and CS perform much better than CAs where equal opportunity is available to all. Its high time Govt. should open these areas to other professional bodies. And also allow CAs to do Cost Audit and Secretarial audit. Let Public decide whose services they want. Some commented let others take the CA exam and enjoy the field reserved for CAs. So why on earth other Professional bodies created by Govt….? Let there be a single institute i.e. ICAI. Reason of creating ICWAI and ICSI is defeated b’coz of less (no) scope for them in statutory compliance. Over the period of time ICAI managed to get other areas of statutory compliance beside the financial audit. Those who comment the syllabus of 3 institutes are different Let them do a reality check.. There is hardly any difference. So Govt. should seriously think of dismantling the Non-scope professional institutes like ICWAI and ICSI and let CAs do the Cost Audit and Secretarial Audit.
Discrimination & step motherly treatment shown by CBDT/Ministry of Finance against Non-CA Tax Professionals since 1984 created frustration & anger in their minds to take negative role. The concern of Income-Tax Deptt. should be how more tax can by collected by widening genuine tax base of assessees and not on any professional body whether it may be created by an Act of Parliament or any other local statute. This is how world over tax laws are framed in other country’s. Here, Deptt. should keep in mind that these bodies work in the interest of members only, ignoring revenue interest & hence Deptt. should not rent out its mind. 46 Plus CA Certificates indicates disability of CBDT to administer Income-Tax Act & it has now become extension office of ICAI.
As expected saw lots of comments from CA forum stressing that the curriculum provides them an aptitude and skills to do such practice.
However if one goes through the course structure is not very different in CA & CMA ( earlier ICWA). Both degrees demands tough mental and moral aptitude to qualify.
Some where I feel the spirit of honouring others is lacking.
Without going into much debate it will be appropriate ICMAs should be given authority to do Income Tax Audit & similarly CA should be given authority to Excise audit instead of keeping isolated domain for both.
1) Could any advocate please tell how many:
ACCOUNTING STANDARDS, IND ASs and, STANDARDS ON AUDITING;
have been prescribed by MCA as designed and formulated by ICAI?
2) And how many:
IFRS, US GAAP, STANDARDS ON AUDITING;
have been prescribed by INTERNATIONAL BODIES and followed in developed countries of US and UK?
3) What is the relevance of AUDIT under SOX ACT(SARBANES OXLEY ACT, 2002)?
First understand the meaning and relevance of this BASICS of AUDIT PRACTICE and then demand for the authorization to audit under ANY ACT.
One should not forget the Chanakkya’s words that
” Even to the son of the King the Powers and Authorities should not be given without KNOWLEDGE, LITERACY AND TRAINING.”
CAs now overpowered Advocates in view of better knowledge in accountancy. ITOs himself failed to counter arguments made by CAs. Businessmen also chooses CAs for his case.
I agree with K. MUKAMBIKA In recent honorable Supreme court given verdict in case AK BALA JI non advocate could n,t practice of law.
Sir in income tax act near about 15 person who can appear on behalf of assessee. whether those all authorized to practice of law.IT VESTED ONLY ADVOCATES
when audit report is perpared by a chartered accountant in such cases additions made by AO who is not chartered accountant & such addition not deleted till honorable high court & supreme court.
THEN PL TELL BUT IS BENEFIT OF SUCH CERTIFICATES.
IT IS REQUEST TO GOVERNMENT PL CONCENTRATE TO INCREASE REVENUE OF THE COUNTRY INSTEAD INCREASE CERTIFICATE IN TAX LAWS.
It is humbly request to government pl save Indian assessee unnecessary expenses & ACCOUNTING SYSTEM SHOULD BE SIMPLE MERE DECLARATION FROM ASSESSEE IS SUFFICIENT INSTEAD OF AUDIT REPORTS.