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Advocate B.S.K.RAO

1. Below are the accounting bodies of various country’s world over on date, In spite of this, they have separate bodies/legislation for regulation of Tax Professionals. Reason being, situation similar to that of latest Supreme Court verdict in the case of Bar Council of India Vs A.K.Balaji about Practice of Law by only Advocates/Attorneys arisen (See Exhibit-1). More over each professional body mentioned below possess members in the range of 1,00,000 to 5,00,000. In fact, in all below mentioned country’s, population is less & existing members are sufficient to meet the requirement of their economy. Indian position is different. India is highly populated, existing 65,570 practicing Chartered Accountants spread throughout India does not meet the requirement of our country (See Exhibit-2). Therefore, India needs Tax Practitioners Bill to generate Tax Professionals to support voluntary compliance for widening genuine tax base of assesses.

AICPA (USA), ACCA (UK), CICA(Canada), CGA (Canada), CICMA(Nigeria), CIMA(UK),CIPFA (UK), CPA (Australia), GCPAS (Germany), ICIA(Canada), HKICP (Hong Kong), ICAA (Australia), ICAEW (UK), ICAI (Ireland), ICAI (Financials-India), ICAI (Cost & Management-India) ICAS (UK), ICMAP (Pakistan), IFA (UK), MIA(Malaysia), NZICA (New Zealand), PICPA (Philippines), SAICA (South Africa), MIA(Malta)

2. Our esteemed Central Govt. should come out with subordinate legislation; introduce Tax Practitioners Bill covering all Tax Law Professionals in India also. Such Tax Practitioners Bill should be introduced with preamble stating that “Majority of person practicing tax law in India are Non-Advocates, in order to protect them & also in the interest of Govt. revenue, this Tax Practitioners Bill has been introduced”. Then such Tax Practitioners Law can not be struck down in view of SC verdict in the case of Bar Council of India Vs A.K.Balaji. Treasury Department Circular No.230 for regulations governing practice before the Internal Revenue Service in USA (See Exhibit-3) & Tax Agent Service Act of Australia (See Exhibit-4) are very good examples for kind consideration of Deptt. of Revenue, Ministry of Finance, Govt. of India to have similar Tax Practitioners Law in India also, to widen genuine tax base of assesses.

3. Among Legal Practitioners, Cost & Management Accountants, Company Secretaries, Chartered Accountants and Income-Tax Practitioners, who wants to practice tax law in India, should mandatory seek registration under Tax Practitioners Law, whatever their parent body say is immaterial & Tax Practitioners Law should recognizes the qualifications acquired by all five class of Tax Professionals mentioned above. Population wise India is a large country, Govt. can not relay on one professional body for seeking voluntary compliance under Indian taxation laws. Tax Practitioners Bill is well suited to India, required for India & need of the hour. Why can’t India have professional body to generate Tax Professionals to support voluntary compliance for very purpose of collection of revenue under all Indian taxation laws. I hope Deptt. of Revenue, Ministry of Finance, Govt. of India will consider this suggestion of mine working in the interest of all Tax Professionals and Govt. revenue since  2001.

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0 Comments

  1. CA Geetaa Guwalanii says:

    Yes. It is essential to regulate tax practitioners and bind them by Code of Conduct. As of now they are all uncontrolled species not governed by any regulation. Even basic registration as ITP is not required for practicing the taxation particularly before AO. On the other hand Advocates and CA’s have to adhere to stringent Code of Conduct as per restrictions by their respective Institutes.

  2. B S K RAO says:

    US TREASURY CIRCULAR NO.230 IS THE TAX PRACTITIONERS LAW, REGULATING ALL TAX PROFESSIONALS IN USA. CLAUSE NO.10.32 OF US TREASURY CIRCULAR NO.230 IS AN EXCEPTION CLAUSE FOR UNAUTHORISED PRACTICE OF LAW, PROVIDED TO ENABLE OTHER THAN ATTORNEY’S TO APPEAR BEFORE INTERNAL REVENUE SERVICE OF INCOME-TAX DEPTT. IN USA. THEREFORE, TAX PRACTITIONERS BILL WITH SUCH EXCEPTION CLAUSE REQUIRED FOR INDIA TO ENABLE OTHER THAN ADVOCATES TO PRACTICE TAXATION LAW IN INDIA. ON DATE, APPEARANCE CLAUSE UNDER ALL INDIAN TAXATION STATUTE HAS BEEN SUBJECT TO REVIEW OF APEX COURT IN VIEW OF VERDICT IN THE CASE OF BAR COUNCIL OF INDIA VS A.K.BALAJI [SLP (Civil) No(s)17150-17154/2012] DT.04.07.2012 (SC) AND A.K.BALAJI Vs GOVT. OF INDIA(2012)35 KLR 290 21.02.2012 (MADRAS HC) AND HENCE REQUIRE DELETION FROM ALL INDIAN TAX LAW STATUTE BOOK. OTHER THAN ADVOCATES SHOULD APPEAR BEFORE TAX AUTHORITIES UNDER CPC/EVIDENCE ACT AGAINST SUMMONS ISSUED.

    IF SUCH APPEARANCE CLAUSE STILL RETAINED IN STATUTE BOOK OF INDIAN TAXATION LAWS, SITUATION MAY ARISE THAT ORDER OF ASSESSING AUTHORITY PASSED AGAINST THE REPRESENTATION OF NON-ADVOCATES BECOME IN-FRUCTUOUS, BAD IN LAW, NULL AND VOID. FURTHER SUCH ORDERS CAN NOT BE ENFORCED/APPEALED.

  3. s sudarshana says:

    Mr.Rao Saheb,
    Main MOTTO is in the interest of the professionals!!! You are writing very nicely and I wish you read others comments too. You missed what I said on 1/7/2014 1st line in 2nd para; “….The governments interest should always be people at large, ‘aamadmi’ first and the rest later…”. Interest of all of us, individuals, Bodies, Unions etc etc must be for public good, primarily. It is said charity begins at home.
    Hope my message is LOUD AND CLEAR.

  4. Stop Hating CA's says:

    BSK Rao Sir. What a joke? You think BCOM/MCOM graduate is better than a CA/CWA/CS just because they get “Coaching”.?

    Professional courses are rigourous because they bank upon concept clarity and self study. It cannot be spoon fed.

  5. B S K RAO says:

    MANDEEP SINGH SIR,

    ONE SHOULD NOT FORGET THAT UNIVERSITY RECOGNIZED COACHING IS THERE FOR B.COM, M.COM GRADUATION/POST GRADUATION COURSES WITH PRACTICALS. EVEN IN USA SUCH UNIVERSITY DEGREE OF INDIA IS ONLY RECOGNIZED FOR PURSUING MS COURSE. THIS HAS TO BE CONSIDERED BY CBDT TO GRANT AUTHORITY FOR TAX AUDIT. WHEREAS CA/CMA/CS, THERE IS NO RECOGNIZED COACHING CLASS & ANY ONE CAN JOIN AFTER MATRICULATION LIKE THAT OF DIPLOMA IN ENGINEERING

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