Advocate Deepak Bapat
1. All the Ministers, MP’s, MLA’s and Judges in India are under wrong impression that only Chartered Accountants are in practice of taxation. Therefore, the taxation laws are being drafted only with the advice of Chartered Accountants working in various Government Departments or as the case may be with the advice of the Institute of Chartered Accountants of India.
2. Under the Income Tax, Excise, Service Tax and Sales Tax Act, following professionals are allowed to prepare returns, statutory compliance etc. and to attend before the Officers & Tribunals in every proceeding under the Act:
(i) Advocates
(ii) Sales Tax Practitioners(Commerce graduates and retired officers of the Sales Tax Department)
(iii) Income Tax Practitioners(Commerce graduates and retired officers of the Income Tax Department)
(iv) Retired Officers of the Excise Department
(v) Chartered Accountants
(vi) Cost Accountants
(vii) Company Secretaries
3. Under Section 35Q of the Central Excise Act, there is no concept of Excise Practitioner or Service Tax Practitioner. However, the CA’s, Cost Accountants and retired officers of the Excise Department are allowed to appear before the Excise Officers & Tribunals as ‘Agent’ of the Tax Payer. In every State, Commerce graduates and retired officers of the Sales Tax Department are enrolled with the Commissioner of Sales Tax as Sales Tax Practitioner(STP). Similarly, under the Income Tax Act, commerce graduates are enrolled with the Commissioner of Income Tax as Income Tax Practitioner(ITP). It is a matter of surprise, as to why there is no provision under the Excise Act, to enroll commerce graduates as Excise & Service Tax Practitioner, when, even the CA (who knowns only accounts) is allowed to attend as ‘Agent’.
4. The reason for the above is that, the ITPs & STPs does not have the Governing Act and Governing Institute to convince the Government of India that the STP’s have sufficient knowledge of accounts to practice as ‘Excise & Service Tax Practitioner’. The Advocates, Chartered Accountants, Cost Accountants and Company Secretaries are governed respectively by the Bar Council of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India and Institute of Company Secretaries of India. The aforesaid Institutes(Governing Body) are established under the respective Act of Parliament of India.
5. The Government of India has completely ignored the above important aspect regarding STP’s, while introducing GST, and without the application of mind, introduced the scheme of ‘Tax Return Preparer’ under which, any commerce graduate can prepare the GST return. As the STPs have played the important role for successful implementation of Sales Tax Law, I strongly suggest that, before the introduction of GST, the Central Government should introduce the ‘Goods & Service Tax Practitioners Act of India’ to govern the ‘Sales Tax Practitioners’ who are presently enrolled with the Commissioner of Sales Tax of each State. Needless to state that the aforesaid Act can be enacted even before the GST Act comes into force, because currently also, Goods and Services are being taxed under the respective Act and therefore the STP’s and retired officers who are attending the proceedings under the respective Act, can be called as GST Practitioner within the meaning of ‘GST Practitioners Act of India’.
6. If the GST Practitioners Act is brought in force and GST Practitioners Institute is established thereunder, every “GST Practitioner” will be subject to statutory discipline. Moreover, because of examination and obligatory training courses conducted by the GST Practitioners Institute, he will be proved of immense help to the GST Department to increase legitimate revenue. On the eve of GST Act where e-compliance would be a key factor, the “Institute of GST Practitioners of India” would produce a GST practitioner, with the level of assurance and creditability expected by the Parliament of India. I, as then President of the Sales Tax Practitioners Association of Maharashtra, tried with the Government of Maharashtra, for the introduction of the ‘Sales Tax Practitioners Act of Maharashtra’. However, the Ministers and IAS officers for the reasons known to them refused to do so.
7. The number of STPs Enrolled with the Commissioner of Sales Tax, Maharashtra State, are more than 16,000. All over India, the number of STPs is more than 3,50,000. In the year 2010, the Central Government prepared the Bill to introduce the Legal Practitioners Act. As there was a mistake of including the Advocates who are already governed under the Advocates Act, it was opposed by the Bar Council of India.
8. As per Section 2 of the Chartered Accountants Act, any CA is supposed to practice only accounts and audit. However, by disregarding the aforesaid provision, CAs are carrying out other activities such as filing up the forms of returns under the Taxation Act, filing up the forms for license or registration certificate under Bombay Shops and Establishment Act, Public Trust Act etc. In number of cases, the High Courts and Supreme Courts have held that the Chartered Accountants cannot argue the cases under the Consumer Protection Act, Labour Act etc. Inspite of the above, CAs are arguing the cases before the appellate authorities and Tribunals. The above acts of CAs is the violation of Section 2 of the Chartered Accountants Act.
9. The present Tax Laws and Section 86 of the GST Model Law allows other professionals(though they are not Advocates), to attend before the authorities & Tribunal in any proceeding. However, it is required to be taken into account that the said provision does not allow them to plead or as the case may be to practice such tax law, as if he or she is an Advocate. Inspite of that, large number of CAs are pleading before the tax authorities and thus carrying out the practice of law. The above action of such CAs is liable for criminal action under Section 45 of the Advocates Act.
10. As stated in the beginning, because of unawareness of Politicians, they are treating CAs as supreme, for practice of tax laws, though other professionals are also successfully practicing under the tax laws. This unawareness resulted in introducing the provision of audit (only by CA) under the Income Tax and Sales Tax Laws. Once the CA is appointed as Auditor, the tax payer does not appoint the Advocates and Tax Practitioners for the work of preparation of returns and attendance etc. Since 1983 i.e. after introduction of Audit provision under the Income Tax Act, large number of Advocates lost their cream clients and the new generation of Advocates is reluctant to practice on tax laws. Same is the suffering of ITPs and STPs. The above situation, gave an opportunity to CAs to canvass that very few Advocates are practicing under tax laws. About the ITPs & STPs the Courts have taken the view that as they are not governed by the Statutory Body and Statutory Act, their level of assurance and creditability cannot be guaranteed.
11. The aforesaid facts and circumstance makes it clear that large number of STP’s and Advocates are practicing in the field of Sales Tax, Excise and Service Tax. The knowledge of accounts required for preparation of returns and for audit of accounts, is identical. The knowledge of accounts has the importance of only the facts of the case. Therefore, only because the CAs are conversant with accounts, they cannot claim supremacy in the practice of GST Law. As such, there is no logic in allowing only CA’s and Cost Accountants to conduct the audit of accounts under Section 42(4) of the Model GST Act. In fact, the term ‘audit of accounts’ is a misnomer. It creates an impression that being audit of accounts, it is the domain of only CAs. Therefore, the said term is required to be replaced by the words “Compliance Report’. As the provision of the said audit by CAs has created their monopoly, you are requested to stop the same for the reasons explained hereinbefore, by making suitable amendment to the GST Act.
12. The provision of appointing Tax Return Preparers vide Section 34 of the Model GST Act will result into creation of unqualified GST Practitioners. It is required to be taken into account that for preparation of returns under the Tax Law, the knowledge and practice under the said Act is essential. Only because such a person can operate computer and can make use of software for preparation and uploading of returns and various reports under the GST Act, there is no logic in appointing them as Tax Return Preparers. Hence the said provision is required to be removed.
13. The provision of allowing a taxable person to be represented by his relative or employee is also not logical. The permission to allow a litigant to appear in person before any Court should not be equated with the relative or employee. Therefore, only in exceptional circumstances, such permission should be granted.
14. Under the circumstance, I suggest the Finance Minister to do the following:
(i) To amend Section 42(4) of the Model GST Act in such a manner that the term ‘audit of accounts’ should be replaced with the words ‘compliance report’ and the GST Practitioner, Advocate, Cost Accountant, Company Secretary and Chartered Accountant be allowed to certify the said ‘compliance report’.
(ii) To enact “The GST Practitioners Act of India” and establish thereunder “The Institute of GST Practitioners of India”.
(iii) To amend Section 86 of the Model GST Act in such a manner that any person who, immediately before the commencement of this Act was qualified to appear as a Sales Tax Practitioner, shall be continued to appear as a Goods & Service Tax Practitioner for representing a taxable person in any proceeding.
(iv) To amend Section 86 of the Model GST Act in such a manner that the qualifications which were prescribed for a Sales Tax Practitioner under any earlier law, shall also be prescribed for a Goods & Service Tax Practitioner within the meaning of Goods & Service Tax Practitioners Act of India.
(v) To amend Section 86 of the Model GST Act in such a manner that a relative or regular employee of a taxable person cannot appear in any proceeding on behalf of a taxable person.
(vi) To delete Section 34 of the Model GST Act which provides for Tax Return Preparers.
(vii) To amend the Income Tax Act on the aforesaid lines.
(Author is an Advocate & Sales Tax Consultant and can be reached Email:dkbapat2002@yahoo.co.in, Mobile: 9820528006 )
Monopoly in any case harmful to economy at large…
I REQUEST ALL OF PROFESSIONAL BROTHERS TO MAINTAIN PROFESSIONAL LEGACY.
Do not allow any feeling of Hardship or Opponent Creates in your Heart.
Regards,
Axat Vyas
9898265111
axat_vyas@hotmail.com
MrAbhishek on 3rd Nov., 2016, comment that all big lawyers are ca which is not correct either one can be lawyer or ca. And Mr. Deepak Bapat comments are correct
The need of the hour is success of new tax regime for betterment of our great nation. This can be achieved only through inclusive policy not by exclusive policy. Therefore, govt should include all types of tax professionals in all sections of GST Act. so as to make GST a success.
sir, everyone opine that their profession is great and hard than others. naturally, clash arises and flows till it hits their igo. 5 classes of tax professionals exists in Indian tax reign since its evolution. undoubtedly everyone in each class of taxing is having lot of expertise and should be treated as perfect personality to do best service to their clients. our success is depend on clients’ satisfaction and positive mood from departments. India is the only nation having diversity in unity and our professionals should also maintain this pattern.thank u all and have smooth relations among each other.
We are all aware of that The Central Excise Act 1944 (continuation of British rule. The original/ basic mind set of it is only to control Indians economy) which is now administered by CBEC, nothing but a department like rude police. It has not provided proper clause for appearance, reconciliation nor audit. It never trust other than its own.
Becoming CA is tough since CA syllabus and its curriculum are very tough to get pass in the examination that`s all. But nothing survives in practical once they succeed in the examination and enter the field of practice or employment.
Earlier CBEC has also not shown any interest to CA’s (audit clause 5A for service tax issue by courts). Now few CA’s though not having area of state taxes subject, even they don’t have any practical knowledge, encroaching this field having impressed some officials in CBEC through some officials of CBDT and trying to pose as masters (monsters) of the subject. CA act 1949 is prior to the enactment if Indian Constitution, which shows CA’s are nothing but offspring’s of Britishers.
Without any prejudice to the rights of the related tax professionals, I here by suggest:
1.To improve Indian economy by bringing all tax professionals work in the interest of the nation rather than blame games.
2. Enact Tax Professionals Law of India and include the same in GST law with a clear demarcation.
3. Merge all the tax professionals practicing in tax laws under one roof to bring equality and equalization.
I agree. Problem is not in Appearance before the Assessing Officers, the problem is appearance before the Appellate Authority and the Tribunal, which should be sole domain of the Advocates.
mr deepak bapat
first of all, i request you to be humble as a professional. you do not have any right to defame any profession.
a chartered accountancy course is not just about accounts:-
papers are:-
1. financial reporting
2. strategic financial management
3. auditing and assurance
4. corporate and allied laws
5. advanced management accouting
6 information system control and audit
7. direct tax laws
8. indirect tax laws
i want to ask u a simple question:-
after reading above subjects, is ca just about accounting and auditing??
A true tax and audit professional should also know the role of information technology in finance and taxation?
a ca have complete knowledge for system audits and transaction audit..ca knowledge is not just limited to audits and accounts..his skills makes him a complete solution provider..
i want to ask you that..have you heard the name of SAP softwares ltd? SAP has taken advice of panel of 100 CA’s for the preparation of GST Module..cant you see the competency of chartered accountants? do you need any other proof for your undesirable wish?
its very easy to blame one’s profession? does your profession dont have any professional ethics?
Form 3cd under 44AB
what is the accountability of .CA
I wanted to know whether any .CA has ever given certificate that account standard 1 to 31 had been followed
VAs always certify in one word
” as furnished by company/firm/proprietor”
I am yet to find the VAs sighning on the truthness of vouchers
and personal expenses camouflaged as business expenses.
How many CAs certify that books of accounts are returned during the course of business
Every one know how Price water was held responsible in Satyam computer ( Rajus) case
Even courts have held that CAs audited accounts are not sacrosent while rejecting books of accounts u/s 145 of ITAct
if this is so then why exclusive privilege of Auditing us to be given to CAs
I agree with opinions that CA & LLB are experts in handling tax related issues. But there are many senior tax practitioners who are helping the dealers and assessee to plan and file their returns under the provisions of different acts. Under the GST Act there will be big demand for the filing of forms and reports. Hence the government should consider this and amend the provision suitably, so that the senior tax practitioners are also included to represent and sign reports. Even in most of the acts one of the qualification for tax practitioner is graduate in commerce with accounts. Under APGST Act 1957 in the year 2004 the STP’s with 5 years experience were added to sign the annual reports to be submitted.
I strongly suggest to amend the provision so as to include the senior STP & ITP without fresh enrollment in the GST act and use their experience and potential in smooth introduction of the new act.
I refrain form making any comments against any professional/s and say that it has been proved any several instances that whenever any tax matters are required to be implemented, the Government always prefer to seek and rely the suggestions so made by the CA. Thus the legal complicated points remain in dark for which we have to suffer with innumerable amendments and notifications as we have seen in the case of Service Tax. It would be better to get knowledge from all professional institutions or eminent tax practitioners who have dealt with the matter and well conversant.
SIR
GOOD EFFORTS YOU ARE ESCALATED PRACTITIONERS PROBLEMS IN A GOOD MANNER
I AGREE WITH YOU
GOVERNEMNT SHOULD ACCEPT THE SAME. IF YOU HAVE NET WORK PLEASE FORWARD THE SAME TO CENTRAL FINANACE MINISTER AND STATE FINANCE MINISTERS AS WELL AS GST COUNCEL MEMBERS. THEY MAY REALISE FOR THE SAKE OF NEARLY 4 LAKHS PRACTITIONERS.
CA Lalit Munoyat
While I don’t wish to comment on the overall objective of the article written by a professional, I wish to state just 3 points :
1) By the logic of the article, a compounder knows much more of the health of a patient, does it mean that he should be allowed to perform a surgery, small or big ?
2) While Professional competitiveness is always welcome, it must not be at the cost of compromise in the quality of service. It is perhaps due to this reason that the law makers (i.e. members of parliament) are not taking the suggested call even when the number of advocate MPs disproportionately exceed the number of CA MPs (Ratio of about 32:2 Advocates: CAs. Further the finance minister is highly experienced advocate himself and knows better where to lay his eggs on.)
3) While no one should have any objection to the propagation of one’s profession, it must not be at the cost of derogation of the other’s profession. For this reason I have strong objection to the last para of clause 9 of the article which states: “The above action of such CAs is liable for criminal action under Section 45 of the Advocates Act.”
By this do you mean to say all CAs are Criminals to the extent they practice taxation laws?. CAs are not governed by the Advocates Act . They do so because other laws viz. Chartered Accountants Act, Income Tax Act, Central Excise Act, Customs Act, just to name a few, which are themselves a complete code of law independent of the Advocates Act, permit them to do so. You should be gratuitous enough to withdraw the above comment for a healthy and mature debate on the subject.
Instead of asking the law practitioners to be included in the list of people who can audit, blaming the CAs is nothing short of demeaning the law practioners.
Hope the blame game stops and abilities of the people handling these matters are given priority.
Unified regulation given in US-TC-230 to gain control over all class of tax professionals by IRS in USA. Here, in India person covered by professional body are regulated by respective professional body & not by the revenue. Ex: In Income-Tax Act, for action against misconducted should be referred to respective professional body. If the respective professional body issued license to practice Income-Tax law, then only it can take action against members for professional misconduct. This loop hole has been well utilized by CAs. Ex:- In Tax Audit cases covered by scrutiny proceedings, wherein additions are made & sustained in appeal, action for professional misconduct should be taken on person conducting tax audit by the revenue. But, it can not take action for the reason professional body concerned to the person conducting tax audit not issued license to practice law to its members. Therefore, no action has been taken by CBDT till date on such cases since past three decades.
World over functions of Accounting are classified depending on the area of operation, application and usage. They are as under:-
1. Cost Accounts:- Manufacturing/Processing Activity
2. Financial Accounts:-Trading Activity
3. Management Accounts:- Management Level/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”. “ICMAI” should have been the correct name of old ICWAI. I do not know on whose mischief it’s so happened.
In view of the above amendment, Cost Accountants now possess wide power of working in the area of Cost Accounts, Financial Accounts & Management Accounts. Whereas, Chartered Accountants are restricted to work in the area of Financial Accounts only (Ie, Accounting of Trading Activity Only). Hence, ICAI (Cost and Management) should be called FULL ACCOUNTING BODY in INDIA. I do not understand why only Chartered Accountants are authorized to conduct Tax Audit U/s 44AB of Income-Tax Act & enjoy monopoly of authority, causing strict hurdle for voluntary compliance.
1.In GST regime, there should be Sales Tax Practitioner(at present rule 168 of KVAT rule 2006) to become tax return prepares as per section 34 of chapter VIII of model G.S.T. law.
2.Allow Sales Tax practitioner,to do audit as per section 50 of chapter XIII of model G.S.T. law
3.At present under KVAT rule 34(1) read with section 34(4) of KVAT, S.T.P are eligible for audit.(In case non- corporate Assessee)
4. This thing should be continue in G.S.T Regime. In Karnataka almost more than 5000 Sales Tax Practitioner are enrolled with Commercial Tax Department
Govt. need not worry about capability of Tax Professionals, assessee chose the right person for his right job for giving compliance under Indian Taxation Laws. Further, such capability will come from birth & common sense of human being and not from the experience certificate issued to any person by respective professional body. I am of the strong view, once particular class of Tax Professional is authorised to prepare return, he/she should be allowed to issue Certificates & reports in respective taxation law. Alternately, retain only CAs for the purpose of compliance under Indian Taxation Laws. Govt, should not create circumstance of approaching one more Tax Professionals for the purpose of giving compliance under Indian taxation laws at the extra cost of the assessee. This situation prevailing under Indian taxation law has been strongly opposed by the author. To solve this demarcation problem of professional bodies & also to regulate all five class of tax professionals Govt. should come out with Tax Professionals law in the lines of US-TC-230 before introduction of GST in India. I also support views expressed by the author as correct & not biased. Further, views of the author is in the interest of all five class of tax professionals & our valuable Govt. revenue. No where author said that particular class of tax professionals should not practice law. Author is of the strong opinion that there should not be monopoly in tax practice by way of inserting Certificates & Reports from one particular class of tax professional. Why too much of protection, if any professional is capable, show such ability in practice & win the confidence of assesses/dealers. The day is not far such protected professionals will become totally unprotected in this computer era. wait & watch.
Sirs,
There has been discussion that having domain over GST Audits should not be with Chartered Accountants and Cost Accountants. I would like to say that with roll out only a few months from now, which body has conducted seminars / educated its members about GST more than what is done by Institute of Chartered Accountants of India. These bodies do not want to train / educate its members but want a share the cake. Despite law not being the main subject of Chartered Accountants, I can say that as of today, Chartered Accountants know more of GST than any other professional because of the conscious efforts of Institute of Chartered Accountants of India
I agree with the author Mr Bapat. In India qualification prescribed for legal practice is LLB., and should be enrolled with concerned Bar Coucil as an Advocate. Mere encroaching upon other’s profession CA’s need not think themselves as Master of all Profession. Let them first learn to respect others profession rather than getting entry from back doors. If CA’s can agree GST is a Law, what prevents Advocates to practice it.
Indirect tax collections are always higher than direct tax collections, 99 percentages of Indirect tax collections by perspiration of tax advocates and tax practitioners only. But the GST draft bill speaks out nothing about Non-C.A. Tax professionals. The GST act immersing the lives of Non-C.A. Tax professionals.
The point raised by Mr. Bapat, Advocate & Tax Practitioner is undeniably a valid one requiring immediate attention of GOI as well as Tax Administrators and law makers. Govt. does not have any right to snatch away the scope of practice in GST and other Taxation laws from the practitioners who currently earn their livelihood from Tax practice.Upon promulgation of new tax laws in India like VAT, Service Tax,and measure changes in filing of periodic returns in on-line mode , one finds , the Tax Consultants/ Tax Practitioners have suddenly are deprived of their bread and butter.This is sheer violation of fundamental right of such professionals. Besides , if one refers to current formats for VAT Audit and Audit under Income Tax and other taxation statutes, these are nothing but a set of questionnaires, intended to help the Tax Administrators to conveniently discharge their duties in assessment of tax dues and collection thereof and to guard against possible tax evasion. These Audit reports can be be easily prepared, certified and uploaded by Tax professionals other than C.A.s & ICWAs . Govt. & law makers may keep in their mind these points while giving shape to GST and allied Tax laws for India.
Let me clear you me deepak whatever you are either advocate or STP. A Chartered accountant does not carry knowledge of accounts only. Just go through the curriculum it as that much vast in Direct and Indirect tax as of an advocate. Keep some dignity of your profession and your ethical values.
Mr. Bapat…..
You said, CAs only know accounts.,…
But truth is that CA Knows all thing of accounts and its related fields of Audit, Tax, Laws, Business, Capital Market, Management etc. and lawyer, as it name suggest only know lying all the time….Lawyer- A Business totally dependent on lying day and night….
….CA only stamp and sign the documents prepared by us.That the time come to say by by to CAs and freedom from their unnecessarily payment. I am also strongly support and want to our PM should consider our voice and GST practitioner should be all professional like Advocate, CA, CS and cost accountant should be on same level in GST. It gave batter result because stamp and sign theory is not proper and CA must be aware that somebody other than them can check the documents and monopoly of the CA is ended only by these type of decisions.
My humble request is to withdraw the statement “CAs know only Accounts”. Perhaps the author is not aware of the other subjects in which the CAs are trained during the articleship and get through the toughest exams to become a CA. Such derogatory remarks should not be published. Whether Advocates appear for any accountancy paper?
Excellent sir
A major portion of the curriculum of a Chartered Accountant revolves around Accounting Practices and Accounting Standards and that might be one of the reasons of gaining the name “Chartered Accountant” who is an expert in Accounts. At the same time a Tax Advocate has an expertise in interpreting a provision and also determine the nature of transaction and this expertise is gained thorough concentration on provisions of a particular law and a lot of experience. Therefore the provision in the GST Law restricting audit only by chartered accountants and cost accountants needs reconsideration for multiple reasons which are as under:
(i) Advocates are well-versed with the fundamentals of indirect tax law. The advocates have specialized on the subject of sales tax/vat since the past many decades. They are equally competent as chartered accountants and cost accountants to audit the accounts of taxable persons for the purpose of GST Law.
(ii) Audit under the GST Law requires specialized knowledge of commercial tax law in as much as applicable rate of tax, valuation, etc needs to be seen. It is not an audit of accounting entries as such. Thus there is no rationale in restricting the power of audit only to chartered accountants and cost accountants.
(iii) Advocates have been efficiently handling Vat audits since inception of the Gujarat Value Added Tax Act, 2003.
Dear Sir,
As several people have already pointed it out, please do read Section 2(2) of The Chartered Accountants Act, 1949. A Chartered Accountant’s knowledge is not limited to just audit and accounts. We are trained intensively (practically and theoretically) about Accounts, Audit, Taxation laws and Financial management. An article such as this must not attempt to downgrade any profession. I urge you to refrain from using phrases such as “A CA (who knows only accounts)”, when the reality is completely different.
strongly support the opinions expressed by the learned author. All the professionals are required for the Society to provide specialised services in their own field. No one shall encroach in to others field in one or the other plea.It is the high time for the Govt PV India to enact Tax Professionals Act to safe guard the interests of all the tax practitioners. The discrimination amongst CAs, Advocates, CMAs, ITPS, STPs shall be eliminated. The Govt should not ignore the real contributors to Tax network in the ground field. I appreciate the Author for bringing up a meaningful discussion on the burning issue.
–
I fully agreed with the views of the writer Mr. Deepak Bapat. Indian legislature provided special class of persons called Advocates in Advocates Act, 1961 to practice all Indian laws. Section 29 of Advocates Act, specifies that Advocates alone are entitled to practice the profession of Law & Section 33 of Advocates Act specifies that Advocates alone entitled to practice the profession of law before any Court or before any authority or person. Bar Council of India Vs A.K.Balaji [SLP(Civil)No(s)17150-17154/2012] Dt.4.7.2012 (SC) & A.K.Balaji Vs Govt. of India (2012) 35 KLR 290 21.02.2012 (HC) it was clearly held by Apex Court & Madras HC that Advocates alone are entitled to practice the Profession of Law both in litigious and non-litigious matters
There is adequate space for advocates in GST law as in higher appellate forums such as high court and supreme court only advocates can appear. The question is on audit under GST law. For each profession, there should be specialists. CA’s are trained for conducting audit of accounts and advocates are trained for representation before authorities. Hence why there is a requirement for getting audit done by those who are not trained. How can audit be done without verification of accounts. It would be equal to giving a self signed statement by assessee.
I strongly disagree with the fact that a CA knows accounts only. The author should at least have sense to understand what duties a Chartered Accountant is performing. The CA course is not designed only for accounts and audit. The countries best tax practitioners are Chartered Accountants.
Mr. Advocate is under wrong impression that ca only knows accounts but he is well versed in laws even. the main problem with ca is advocate act which was annected in 1961 much latter than chartered accountants act. some times i think that how an advocate can practice taxation unless he has no knowledge of accounts and accounting principals. i strongly suggest that ca should also be allowed to practice in courts with respect to taxation matters.
Mr. bapat you are totally wrong. the CA act does not stipulate only accounting and auditing practice please read the section carefully. Absurd comments like graduates cannot practice gst and all and CAs cannot appear before the tribunal etc. Please observe the law relating to the same. Sales tax / VAT act provides for the same. as far as other quasi judicial forums there is no restriction at all. Mr. Bapat do you know it is only Chartered Accountancy as a professional qualificaiton gets the world wide recognition. If india does not give proper recognition to the said profession INDIA would be the loser for brain drain to advanced countries. n
Chartered Accountants Act 1949 came very early even 12 years prior to Advocate Act 1961…..and the areas of practice for a Chartered Accountant is vast which also includes laws, Below provision clearly states the same…….
Dear Sir,Section 2(2) of CA Act says that
A member of the Institute shall be deemed, “to be in practice “,when individually or in partnership with chartered accountants in practice, he, in consideration of remuneration received or to be received-
(iv) “renders such other services as, in the opinion of the Council, are or may be rendered by a chartered accountant in practice”;
So nowhere in the ACT it says , a CA is supposed to practice only in Accounts and Audit.
LET US MAKE LAWS SIMPLE IN SUCH A WAY TAX PAYER CAN DEFEND HIMSELF. TAX PAYER KNOWS MUCH BETTER THAN SOME ONE ELSE WHICH IS RIGHT OR WRONG. THE MORE WISER BODIES INVOLVES IN BUSINESS THE BIGGER THE HOLE IN PROFITABILITY.
A COUNTRY LIKE INDIA IS BADLY IN NEED OF MORE SERVICE ORIENTED DOCTORS AND , ENGINEERS NOT LAW INTERPRETERS.
LET US MAKE GST IS SIMPLE, HASSLE FREE ACT AND DO NOT WISH WITHIN A YEAR CASES WILL PILE IN TRIBUNAL AND HIGH COURTS
Legal Practitioners (Advocates) are the only class of persons entitled to practice law U/s 29 of Advocates Act, 1961 (Law Professionals), there is no justification in prohibiting Advocates to issue Certificates or Reports in Income-Tax Act. (This is well supported by Bar Council of India Vs. A.K.Balaji SLP (Civil) 17150-17154/2012)
Dear Sir,
I too Agree with you statement
Hats off for putting it on papers
Mr. Deepak Bapat, appreciate your concern for non- CA, and neither questioning the capability of non-CA in application of the law. But it would do good for the law to consider the points and also permit non-qualified medicos to practice medicine & surgery.
ADVOCATE AND TAX PRACTITIONERS HAVING PRACTISED SINCE MORE THAN 10 YEARS UNDER SALES TAX LAWS, SHALL BE AUTHORISED TO PRACTISE AND SIGN COMPLIANCE REPORTS UNDER G.S.T. AND APPEAR BEFORE ANY AUTHORITIES WITH REGARD TO G.S.T. SENIORITY UNDER SALES TAX PRACTICE IS MORE RELEVANT HERE… I SUPPORT THE VIEW HERE….
धन्यवाद बापट जी
https://taxguru.in/chartered-accountant/salman-khurshid-for-33-reservation-for-women-in-ca-profession.html
Dear Advocates (dreaming to be/called Expert Accountant for free),
Please refer the above article where Mr Salman Khurshid (Senior Advocate, Supreme Court of India ) argued for reservation in CA Course. Which is laughable and this shows how depth understanding of law, Advocates have !!!
Bar Council of India to take speedy and strong steps to protect the interests of the Tax advocate . It is also necessary for the BCI to quantify the number of Tax Advocates and represent before govt of India specially with Legal and Finance Ministers to take suitable steps to prevent Non-Advocates not to enter the area of legal practice .
This article has been written with full of biasness and without logic. I strongly condemn this statement that “even the CA (who knowns only accounts) is allowed” A CA knows a lot more things than Accounts. For information of the writer, All big tax lawyers are CAs and a lot many judges of High courts are also CAs. Only restrictive rules of Advocates Act 1961 are forcing CAs to do LLB to practice law at HC/SC levels. what is your take on that. This is wrong to say CA only knows Accounts. A CA knows law better then all average lawyers. 100% CA pass LLB exams with practice Law at excellence level. Can one give example an ADVOCATE dared to take admission in CA and pass the CA exams to take the profession of Accountancy – I believe NONE. But everyone dreams and expect free breads that’s tendency of politics and some people. ONE should earn his bread instead of begging. All profession are open for all…..!!!!
This article has been written with full of biasness and without logic. I strongly condemn this statement that “even the CA (who knowns only accounts) is allowed” A CA knows a lot more things then Accounts. For information of the writer, All big tax lawyers are CAs and a lot many judges of High courts are also CAs. Only restrictive rules of Advocates Act 1961 are forcing CAs to do LLB to practice law at HC/SC levels. what is your take on that. This is wrong to say CA only knows Accounts. A CA knows law better then all average lawyers. 100% CA pass LLB exams with practice Law at excellence level. Can one give example an ADVOCATE dared to take admission in CA and pass the CA exams to take the profession of Accountancy – I believe NONE. But everyone dreams and expect free breads that’s tendency of politics and some people. ONE should earn his bread instead of begging. All profession are open for all…..!!!!
बनसल जी अपने बहुत बरकी से उपरोकत लेख लिखा बधाई व धन्यवाद्
(1) Legal Practitioners are also authorized to prepare return of income & represent assesses U/s.288(2) of Income-Tax Act read with Rule 12A. Rule 12A inserted by Notification No.2029 Dt.13.6.1962, require Legal Practitioner covered U/s 288(2) to furnish report on the examination of assesses account books & documents in the assessment proceedings. Here question arises when such audit clause already present in Rule 12A of IT Rules, why once again Section 44AB inserted in Income-Tax Act.
(2) When Legal Practitioners are authorized to prepare return of income under 12A of Income-Tax Rules, it is presumed that such persons possess knowledge of Income-Tax law read with accounting principle prescribed U/s 145 of Income-Tax Act. Information to be furnished in Certificates/Reports under Income-Tax Act amounts to practice of law as it require interpretation of law more & basic accounting knowledge sufficient.
I am totally agree with the views express by the Author and thank him for bringing the reality before the society.
It is right time to have unified control & regulation of all players practicing taxation laws in India, Tax Practitioners Law is the need of the hour. In India, there are professional bodies passed by the Acts of Parliament, to protect the interest of their members only, but there is no professional body to generate tax professionals to protect the interest of Govt. revenue. 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 says is immaterial & Tax Practitioners Law should mention the qualification & experience required to be possessed by all the five class of tax professionals. On date ample tax compliance work is there, but there is no required Tax Professionals to support voluntary compliance in Indian taxation laws. Further, “More persons in the line of tax practice leads to improvement in quantum of compliance & more revenue to the Government”. Tax Practitioners Law in the lines of US Treasury Circular No.230 is well suited to India, required for India to widen genuine tax base of assesses
SIR, CAN A COMMERCE GRADUATE PRACTICE GST, UNDER GST ACT? IF HE IS ENROLED AS A STP, SHOULD HE RE ENROLED UNDER GST ACT?