CA Sandeep Kanoi

Tax Audit under the Income Tax Act is currently allowed to be conducted only by the Chartered Accountant but Proposed Direct Tax Code 2013 allows Tax Audit not only by Chartered Accountant but also by Company Secretaries and Cost Accountants. Clause 88 of the Proposed Direct Tax code prescribes who needs to get the book audited under the direct tax code 2013 and it further says that the same needs to be audited by an accountant. The Term accountant is been defined in Clause 320(2) which says that accountant means Chartered Accountants , Company Secretaries , Cost Accountants any person having such qualifications as the Board may prescribe, for the purposes specified in this behalf.

Direct Tax Code 2013

Audit of accounts and reporting of international transaction

88. (1) Every person, who is required to keep and maintain books of account under section 87 shall get his accounts for the financial year audited—

(a) where the person is carrying on one or more professions , the aggregate gross receipts of such profession or professions exceed twenty-five lakh rupees in the financial year;

(b) where the person is carrying on one or more businesses , the aggregate total turnover or gross receipts, as the case may be, of such business or businesses exceed one crore rupees in the financial year.

(2) The audit of the accounts referred to in sub-section (1) shall be carried out by an accountant and the report of audit be obtained in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(3) The person referred to in sub-section (1) shall furnish the report of audit referred to in subsection (2) to the assessing officer on or before the due date, in the manner as may be prescribed.

(4) The provisions of sub-section (1) shall not apply to the business where the income therefrom is determined under paragraph 1 of the Eleventh Schedule.

(5) A person shall be deemed to have complied with the provisions of sub-section (1), if the person—

(a) gets the accounts of his business audited as required by, or under, any other law for the time being in force, before the due date; and

(b) obtains by the due date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under sub-section (2).

(6) A person referred to in sub-section (2) of section 87 shall furnish a report of the international transaction or the specified domestic transaction entered into during the financial year to the Transfer Pricing Officer and the Assessing Officer on or before the due date, in the manner as may be prescribed.

(7) The report referred in sub-section (6) shall be obtained from an accountant in such form duly signed and verified in such manner, as may be prescribed.

Meaning of Accountant as per Clause 320 (2)

320. In this Code, unless the context otherwise requires —

(1) *******

(2) “accountant”means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 and who holds a valid certificate of practice under sub-section (1) of section 6 of that Act, and shall include-

(i) a company secretary within the meaning of the Company Secretaries Act, 1980 ;

(ii) a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 ; or

(iii) any person having such qualifications as the Board may prescribe, for the purposes specified in this behalf.

Also Read

Govt. invites comment on Proposed Direct Taxes Code 2013 + Download DTC 2013

Significant changes in the proposed Direct Taxes Code, 2013

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Tags : CA Sandeep Kanoi (252) Direct Tax Code (292) dtc (262)

148 responses to “Proposed DTC allows tax Audit by CS and Cost Accountants also”

  1. CS K. GANGATHARAN says:

    WE ARE WAITING FOR DIRECT TAX CODE

  2. pc says:

    @S JEGADEESAN. We welcome CAs in cost audit and secretarial audit. Then Cs & CMAs should be allowed to do financial audit.This is good move to allow CS & CMAs to include them in the deficition of Accountant proposed in the new tax code.This will abolish the monopoly of CAs in income tax practice.The Govr. so far has been allowing only CAs. Even to issue 15CA,CB cerficates only CAs are allowed. Why this desperity?

  3. B.S.K.RAO says:

    AUDIT IN COMPANIES ACT IS A COST, FINANCIAL & MANAGEMENT ACCOUNTS AUDIT. HERE CMAS BE ALLOWED TO FURNISH THE SAME. WHEREAS IN INCOME-TAX ACT, IT IS A TAX LAW AUDIT. THEREFORE ALL PERSONS AUTHORISED TO PREPARE RETURN UNDER RULE 12A READ WITH SECTION 288(2) OF INCOME-TAX ACT, BE ALLOWED TO FURNISH TAX LAW AUDIT REPORT U/S 44AB. HERE MORE STRESS GIVEN TO INTERPRETATION OF LAW. THEREFORE, DECISION OF MINISTRY OF FINANCE TO EXPAND THE DEFINITION OF ACCOUNTANT IN DTC TO INCLUDE RELATED PROFESSIONAL IS APPROPRIATE. I MIGHT HAVE USED THE WORD MOST APPROPRIATE, IF TAX ADVOCATES AND INCOME-TAX PRACTITIONERS WERE ALSO INCLUDED IN DEFINITION OF ACCOUNTANT IN DTC-2013

  4. K.MUKAMBIKA says:

    P S Deshmukh Sab,

    Very pupose of uploading tax audit report is e-filing portal for the Asst. Year 2013-14 was to utilse the same to concluding quality assessment. This also confirms to e-filing project agreement. Against RTI for seeking information about total of section wise wrong claims reported in Tax Audit Report, CBDT failed to provide the same. If you kindly go through Rule 12A of Income-Tax Rules, you will find that other four Non-CA’s class are also authorised to prepare return. Hence, it does not amounts to “treating a patient by a person who even doesn’t know how to check blood pressure”. It is also well known to the Deptt. that it could not utilise the tax audit report furnished by CA’s since 1984, then why 2nd opinion about expanding the definition of Accountant in DTC by including related professionals.

  5. P S Deshmukh says:

    With all views of the above qualifieds, i put forward my opinion.
    this is not a war like, to curtail somebodys right against infavour of some one. there is established principle of natural justice that, there can be a profit at a cost of other. Once there is settled profession with esteemed repute and command over act, accounts , decision making, there can not come to allow other non qualified professionals ( not to qualify to be a auditor and accountant). one should understand that, mother act of companies , i.e comapny act 1956 and it’s precedent act allows Chartered Accountant to audit both, cost audit as well as financials audit. there has been vast knowledge input is on hand as a result of long continuous research which makes it alien with national interest. foreign bodies like AICPA, CA of Australia are having tie up with the ICAI (financials), they allows chartered accountants to practice in their respective countries. here chartered accountants are considered as a world class professionals, even corporate world prefer chartered accountant than any other sister institute pass out. in the area of direct tax, chartered accountants are handy in conducting tax audit because the audit is nothing but the financial checking, cost accountant ans company secretary having different domains and thy can;’t be considered fit for the audit( remember:- mother company act allows CA to be a secretary of company also).
    Last but not least, when a CA passess out, he makes it through with his dedicated continuous efforts , after 3.5 years of article ship and he is well set due to his practice of study. if other people are allowed to practice as a accountant, then it could be like treating a patient by a person who even doesn’t know how to check blood pressure.
    We strictly oppose the inclusion of such other institute pass outs.

  6. B.S.K.RAO says:

    BASIC CONCEPT OF AUTHORISING “ACCOUNTANT” TO CONDUCT “TAX LAW AUDIT” BOTH IN INCOME-TAX ACT AND DIRECT TAXES CODE AMOUNTS TO CONTRAVENTION LIABLE FOR ACTION UNDER ARTICLE 129 READ WITH ARTICLE 142(2) OF INDIAN CONSTITUTION IN VIEW OF LATEST SC VERDICT IN THE CASE OF BAR COUNCIL OF INDIA VS A.K.BALAJI READ WITH HC VERDICT A.K.BALAJI VS GOVT. OF INDIA. INCOME-TAX ACT/DIRECT TAXES CODE BEING “LAW”, ADVOCATES ALONE ARE ENTITLED TO PRACTICE, PLEAD AND ACT BEFORE THE ASSESSING OFFICERS OF TAX DEPTT. ON DATE “PRACTICE OF ALL INDIAN TAXATION LAW” SQUARELY FALL WITHIN THE PURVIEW OF NON-LITIGIOUS MATTER AND PRACTICE OF THE SAME BY NON-ADVOCATES HAS BEEN SUBJECT TO REVIEW AS PER INTERIM ORDER OF ABOVE MENTIONED SUPREME COURT. THEREFORE I SUGGEST MY ADVOCATE FRIENDS TO ISSUE SECTION 80 CPC NOTICE TO MINISTRY OF FINANCE, GOVT. OF INDIA,
    IN THE ABOVE MATTER.

    I HERE BELOW FURNISH NAME & ADDRESS OF PERSON IN MINISTRY OF FINANCE TO WHOM SECTION 80 CPC NOTICE HAS TO BE SERVED ABOUT PRACTICE OF INCOME-TAX LAW BY ACCOUNTANTS

    SMT.RASHMITA JHA,
    DIRECTOR (V&L),
    CBDT, ROOM NO.253A,
    NORTH BLOCK,
    NEW DELHI-110001

    Tel No.: 011-23092786
    E-Mail : umasingh@nic.in

    I HOPE THAT MY ADVOCATE FRIENDS WILL MAKE USE OF THE ABOVE INFORMATION TO SERVE SECTION 80 CPC NOTICE TO MINISTRY OF FINANCE, GOVT. OF INDIA IN THE ABOVE MATTER

  7. B.S.K.RAO says:

    In the case of Sales Tax Practitioners Association of Maharashtra & Bar Council of Maharashtra, about Audit and Certification of Sales Tax Returns, recently Hon’ble Supreme Court held that “There must be judicial restraint, We will not interfere, Tell legislature to amend the law” – Justice Markandey Katju (SC)

  8. B.S.K.RAO says:

    DEAR ALL ADV/CA/CMA/CS/ITP,

    Audit means “verification”, depending on the purpose they are classified as Energy Audit, Environment Audit, Product Audit, Process Audit, Legal Audit in USA & Tax Audit in Indian Income-Tax Act. Here, person conducting audit should be specialized in that subject. Hence, the word “Audit” is not the domain of CA/CMA, Assessing officers of Income-Tax Deptt. who come from different streams conducting audit in scrutiny assessment proceedings are not CA/CMA. In fact, criteria of considering Accountant to conduct Audit under Income-Tax Law or DTC is wrong. Because, it amounts to allowing person writing books of accounts to conduct audit. In conclusion, person specialized in Income-Tax law should issue Certificates/Reports in Income-Tax Act….

    Indian legislature provided special class of persons called Advocates in Advocates Act, 1961 to practice all Indian laws. Therefore, appearance clause is not yet all required in any Indian statute. 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) it was clearly held by Hon’ble Supreme Court & Madras High Court that Advocates alone are entitled to practice the Profession of Law both in litigious & non-litigious matters, nullifying the effect of Section 33 of Advocates Act. This also confirms to Section 29 of Advocates Act. As practice of law is the domain of Advocates, it is not only power, but also a prerogative power of Advocates to conduct Tax Law Audit in India in view of latest SC verdict

    FINAL OPINION IN THE INTEREST OF GOVT. REVENUE & ALL TAX PROFESSIONALS

    On careful study of Section 288(2) of Income-Tax Act, 1961 read with Rule 12A of Income-Tax Rules, 1962, it has to be presumed that all five class of person’s viz. Legal Practitioners, Chartered Accountants, Cost & Management Accountants, Company Secretaries & Income-Tax Practitioners possess knowledge of Section 145 read with 14 Accounting Standards of CBDT, required for Income-Tax Practice. Because certain qualification has been fixed in Income-Tax Act for these five class of persons. Further, Accounting Standard framed by ICAI (Financials) & IFRS not required for Income-Tax Practice. Here the question is, when such other four class of Non-CA Tax Professionals are authorized to prepare return under Rule 12A of Income-Tax Rules, there is no justification to prohibit them for issue of Certificates/Reports in Income-Tax Act.

  9. B.S.K.RAO says:

    DEAR ALL FRIENDS,

    Section 44AD, Ceiling on Tax Audit, Uploading of Tax Audit Report and wrong amendment in 2nd Proviso to Section 44AB of Income-Tax Act in Finance Act 2001 are the main cause for above changes reflected in DTC-2013.

  10. B.S.K.RAO says:

    Particulars of Income-tax admitted in tax audit cases for Asst. Year 2012-13 & 2013-14 that relates to return filed in ITR-4, 5 & 6 as provided by CPC, Bangalore as at 28.05.2014 are as under:-

    Particulars……………..Asst. Year 2012-13..Asst. Year 2013-14

    Total Tax Admitted in ITR-4 Rs. 23,986 Crores Rs. 23,952 Crores
    Total Tax Admitted in ITR-5 Rs. 20,712 Crores Rs. 21,556 Crores
    Total Tax Admitted in ITR-6 Rs.2,92,266 Crores Rs.2,34,456 Crores

    Margin derived by farmers is not taxed in Income-Tax Act, but margin derived by next sellers of such agricultural output is taxed in their hands in Income-Tax Act. Presuming the output of corporate assessees reach the ultimate consumer in three stages & considering tax admission in corporate cases & 50% of such corporate assessees do business with non-corporates covered by tax audit, who are in between the corporates & retailers and also considering non-corporates engaged in service sector, I am of the strong view that combined Income-Tax admission as per return filed in ITR-4 and 5 covered by tax audit U/s 44AB should have crossed at least Rs. 15,00,000/-Crores. (Basis being 80:20 ratio of Ag. & Ind. Output).

    Since introduction of Tax Audit by only CA’s in 1984, our esteemed Central Govt. has lost heavily on account of Income-Tax. Therefore, ICAI (Financials) should reimburse the same to the Central Govt.

  11. B.S.K.RAO says:

    World over functions of Accounting are classified depending on the area of operation, application & usage. They are as under..

    (1) Cost Accounts=> Manufacturing/Processing Activity..
    (2) Financial Accounts = > Trading Activity..
    (3) Management Accounts => Management Level/Decision Making..

    Note:-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 & Management Accounts. And hence, Institute of Cost Accountants of India should be called full accounting body in India. 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.

  12. B.S.K.RAO says:

    Below is the title given to BSKRAO by learned CA Ashish Goel (UP), See how much CA’s are Civilized ….. Mukesh Ji, Who is this learned idiot ? ….. CA ASHISH GOEL …… 9412657298…. 9760914729

  13. SUDIPTA MAJUMDAR says:

    Chartered Institute demand that Tax Audit is the exclusive domain of Chartered Accountants only. WHAT IS THIS ? THERE IS NOTHING CALLED EXCLUSIVE DOMAIN IN THIS WORLD …..ANY ONE WHO HAS CAPABLE DO ANY THING.

  14. B.S.K.RAO says:

    DEPTT. OF REVENUE, MINISTRY OF FINANCE, GOVT. OF INDIA SHOULD CONSIDER THE CONCERN OF ICAI (FINANCIALS) ABOUT EXPANDING THE DEFINITION OF ACCOUNTANT IN DTC-2013. IF NOT ICAI (FINANCIALS) NOT ONLY ACT WILD/CRUEL, THEY DO NOT ALLOW DTC-2013 TO COME OUT SMOOTHLY. THEREFORE, IT IS BETTER TO ACCEDE TO THE WISHES OF ICAI (FINANCIALS) AND INTRODUCE TAX PRACTITIONERS BILL PREVAILING IN OTHER COUNTRY’S THROUGHOUT THE WORLD TO WIDEN GENUINE TAX BASE OF ASSESSES IN INDIA

  15. TAXWELL says:

    I THINKM DTC2013 MUST BE IMPLIMENTED IN JULY 2014 BUTDGET ITSELF. WIH CERTAIN AMENDMENTS LIKE ADVOCATES RIGHTS IN TAXATION

  16. B.S.K.RAO says:

    MANDEEP SINGH JI,

    You are correct that CAs should restrict their work to writing books of financial accounts of assessees, the authority granted in their statute. They should not interfere in any Indian law matters both in litigious & non-litigious matters in view of latest Apex Court verdict in the case of Bar Council of India Vs A.K.Balaji. Therefore, appearance clause both in Income-Tax Act, Direct Taxes Code & all Indian State & Central Govt. Taxation Laws require deletion. This will happen today or tomorrow definetly.

  17. B.S.K.RAO says:

    TILL DATE, MINISTRY OF FINANCE SAW ONE FACE OF ICAI (FINANCIALS). AS MINISTRY OF FINANCE NOW COME OUT WITH THE PROPOSAL OF EXPANDING DEFINITION OF ACCOUNTANT IN DTC-2013, NOW HON’BLE MINISTRY OF FINANCE WILL SEE ANOTHER CRUEL FACE OF ICAI (FINANCIALS)

  18. B.S.K.RAO says:

    ATUL SIR,

    I DO AGREE DTC-2013 WILL NOT COME, BUT TAX PRACTITIONERS BILL IS THE NEED OF THE HOUR TO PRACTICE OF LAW BY OTHER THAN ADVOCATES. THEREFORE, I AM OF THE STRONG VIEW THAT TAX PRACTITIONERS BILL WHICH IS PREVAILING IN OTHER COUNTRY’S THROUGHOUT THE WORLD, WILL COME IN INDIA ALSO.

  19. K.MUKAMBIKA says:

    DEAR ALL FRIENDS,

    MINISTRY OF FINANCE WILL NOW REALISE THAT ICAI (FINANCIALS) READY TO DO ANY THING FOR MONEY & POWER FROM THE EVENT OF “PUSHING THE DTC-2013” IN LOK SABHA FOR ITS PASSAGE.

  20. K.MUKAMBIKA says:

    BSKRAO SIR,

    I TOO AGREE THAT AFFAIRS OF ICAI (FINANCIALS) IS AGAINST INDIAN CONSTITUTION, THEY ARE READ TO DO ANY THING FOR MONEY & POWER. EVEN TAKE TUMB IMPRESSION FROM DEAD BODY FOR MONEY & POWER

  21. MANDEEP SINGH says:

    There is no need sections as like 288(2) income tax & other acts. If there is any need of other experts then they can be called u/s 131 of income tax act.

  22. MANDEEP SINGH says:

    In other laws CA’s have zero knowledge. Due to such reasons they often create trouble for assesse when they representing the case.

  23. MANDEEP SINGH says:

    Mr Atul ji,
    Income tax is a law. It is not a accountancy book as prescribed area u/s 32 of chartered accountants act 1949 for CA’s. Can you tell me in which way taxation filed is core filed of CA’s. ICAI have made tress pass in the Advocate profession.
    Practice of every law in india is interlinked with other laws including income tax. Mere reading of income tax law not makes perfect to you in filed of income tax. For interpreting lineal ascendant & decedent you need do detailed study of HINDU LAW & MOHAMMDEN LAW ( any matter related to gift & taxation on HUF)
    OTHER ACTS which related to taxation practice.
    1) HINDU LAW- FOR GIFT & TAXATION
    2) MUSLIM LAW- FOR GIFT & HUF TAXATION
    3) LOCAL LAND LAW- FOR CASES RELATED AGRICULTRE
    4) STAMP ACT – HELPFUL DECIDE CASES RELATED PROPERTY IN IT ACT 1961.
    5) COURT FEE ACT – MAKES DIFFERENCE BETWEEN POA in favour of CA’s & other non
    Advocates
    6) Evidence act – plays important role in income tax.
    7) IPC – IPC knowledge required.
    8) CPC
    9) CRPC
    10) CONTRACT ACT
    Except these there are several laws which are interlinked to defend case under income tax act. “PRACTICE OF LAW” is core area of Advocates & others can’t be tax expert.

    IT WILL BE GOOD IF CA’s ARE CONFINED TO THEIR OWN AREA WRITING OF ACCOUNTANCY BOOKS OF ASSESSEE as prescribed u/s 32 of Chartered accountant act 1949. Filling of form 3CD related to interpretation of laws & it should be core area for Advocates.

  24. SUDIPTA MAJUMDAR says:

    The expansion of definition of Accountant under DTC is welcome change. Much too long, it has been the monopoly of one profession and this monopoly resulted in malpractices leading to huge revenue leakages for the government. Therefore, it is welcome that this monopoly is broken and healthy competition is ushered in. As for competence of other professionals, I understand the other premier institutes have more or less similar expertise. CA’s need not fear encroachment into their domain. It is only the tax practice which is opened up and not the financial audit.Let the country gain by better, effective tax compliance. Let the fittest survive !!!!!

  25. Atul says:

    ” DTC will never come. With BJP in power it’s totally gone. ”

    a reply that I received from a senior govt official of revenue dept. on being asked about DTC.

  26. RAFIKUL ALAM says:

    Charted Accountants are the most Corrupt Auditors they themself involve in Scams by Auditing and Certifying false Accounts it is evident from cases such as SATYAM SCAM , GLOBAL TRUST BANK , REEBOK SCAM and many others. If CMA are included in Accountant definition under DTC small business man, Partnership Firm, Company get maximum benefit at competitive prices.

  27. B.S.K.RAO says:

    Atul Sir,

    I agree with you. Now, Modi Govt. has come, it will not allow to happen again. I am confident, that Modi Govt. will make every part of rupee collected as tax spent with accountability. Let us support Modi in a big way.

  28. K.MUKAMBIKA says:

    DEAR ALL FRIENDS,

    As told by Senior CA: In 1980’s Ltd companies were continuously audited by same old CAs without rotation. New CAs placed this plea before ICAI (Financials), Section 44AB Tax Audit inserted in Income-Tax Act as bread loaf to new CAs. This is the background story of Tax Audit. Hence, it is still retained in the statute book of Income-Tax Act since three decades, without evaluating its utility.

  29. Atul says:

    @ all other who think CS are better than CA

    there is download link from ICSI website for to download the syllabus.

    ICSI being an institute itself doesn’t know the SPELLING OF ” SYLLABUS ”

    see it in the below link…

    icsi.edu/WebModules/Student/SYLLEBUS2013.pdf

    now judge…who is better….? CA or cs…

  30. Atul says:

    @K. Mukambika
    You talk about begging.
    ICSI was the ardent while seeking opportunity when the Companies Act 2013 was framed.
    ICAI has never approached to the MCA people begging opportunity for themselves. It was ICSI who went their to SEEK opportunity from the MCA.

    So who is the beggar here…? ICAI or ICSI ?….yes now you are right dear..its ICSI.

    You cs don’t even know how to talk and think that you will be getting works by passing MCQ exams…means are you an idiot. Ok I m accepting that the entire world was supporting ICAI, but why not foreign companies were asking for CS….there have been major placements of CA across the world….ICAI currently has MRA with 69 countries. How MRA did ICSI have…? None… now ask yourself…whose better…CS or CA…it will always be CA…

  31. B.S.K.RAO says:

    Tax Audit U/s 44AB is the brain child of Wanchoo Committee, out of which two members Sri.P.C.Padhi & Sri.D.K.Rangnekar gave dissenting note for such audit to be conducted by only CAs. Sri.P.C.Padhi is the former chairman of Central Board of Revenue & Deputy Controller & Auditor General of India and Sri.D.K.Rangnekar is a economist & former editor of Economic Times. The word “Chartered” of ICAI (Financials) denotes some thing of a dominion state of affair as against Sovereign Independent Republic of India. Therefore, our Central Govt. think about retaining ICAI (Financials).

    • BML says:

      Hi All

      Why don’t we allow market to decide who is the fittest ….Survival of the fittest is the ultimate…….CA s may get the shield again but ultimately in the era of Market Economy it will open to all professionals….CA/CS/CMA s.
      No force can stop it is only the time and also depends how the other folks represent themselves in front of the advisory committee.

      Thanks.

  32. K.MUKAMBIKA says:

    BML SIR,

    MEMBERS OF ICAI (FINANCIALS) ARE SATISFYING THEIR PERSONAL AGENDA THROUGH THEIR PARENT BODY. GOVT. SHOULD LIFT THIS VEIL OR THINK ABOUT RETAINING ICAI(FINANCIALS). BECAUSE, EVERY TIME THEY MOVE WITH BEGGING BOWL APPROACHING GOVT. AGENCIES WITH THE MANTRA OF PROFESSIONAL OPPORTUNITIES. WHAT WE SHOULD CALL THIS ACT OF ICAI (FINANCIALS)

  33. BML says:

    Mr Atul

    Thanks for your great example to compare the two professional bodies…great culture ….Are u a CA ?

    I guess u guys are really worried and frightened about competition…Like Indian cricket team at west indies during Mid 70s & 80s

    Thousands of you are roaming with seal for chappa signature and beg to the IT inspectors and Clarks for setting your clients book who are merely Graduates, …everyone aware of that….Do you think it is savings of Tax or relief to your client….Do you think intelligent and knowledge needs settings like this….
    Many of you clear CA exam with leaked question paper

    Forget about Satyam Sardha….there are thousand of bogus finance companies, chit funds …who conducts audit of those ?..Dentist ? At least dentist have their responsibility to let you know that which are your bad teeth and need treatment….do you think CA s have ?
    Dentists also need to take some oath but do CA s ?
    Financial malpractices makes those guys great…Are they CA s?

    How many of you have guts to report that the Books are cooked ?

    They are numbered Mr Atul…..

    Mr Atul Tax as a subject has not been patented by your esteemed institute …Is it ?

    Don’t you feel a subject like Tax can not be learnt just by clearing 2 or 3 papers.

  34. Harini says:

    Yesterday my colleague, who happens to be a Cost Accountant had asked me – do you have that notification etc, which allows CMA/CS to do tax audits, and then I started search, and got this content, which I had sent to him for reading.

    https://taxguru.in/income-tax/dtc-tax-audit-company-secretaries-cost-accountants.html#comment-913772

    And today when i started the system, and the first thing of the day, I get to read the various views, written don the content I had picked up from the above link, and then got an understanding of the state-of-affairs of the above mentioned professions. None of them even remotely has this in their back of minds, (instead everybody, EACH ONE OF THEM was immersed in praising the profession to which he or she pertains) that – all these I call are ‘ticketing issues’ and each one of em are missing the main thing – the journey!!

    Instead of thinking who is great, it is better to think how to become Great. A matter of fact CA “FEEL” they are some sorts of ‘upper’ class or creed and forget the basic of being great, being great is not how much you have it is how much you need. And very unfortunately, ICAI have been in focus of lobbying for better prospects, for more monopoly(monopoly it self is just one -but still they need more of this too!!) for more of this and more of that, more of everything. For successful parenting it is sine-qua-non to teach the child how to co-exist HARMONIOUSLY WITH OTHERS AND TO EXIST GENTLY!! Where as the ICAI has been a parent which want to do everything for the kid, making the kid capable but an arrogant being in the society. People should have the power they deserve but not the associated problems. Sad…very sad! – this viewpoint is very clear with each of the CA that – CA exam is very tough, we ONLY clear no one else, instead, it is time to re-think on these issues. And ICAI shall give easy access to CS/CMA/Advocates – who are qualified + working and intent to do CA. The 3 or 5 years mandatory training acts as a deterrent.

    India – this nation is the actual maker, and benefactor of all the professions. AND FOR ADMINISTRATIVE CONVENIENCE ALONE WE HAVE AUTONOMOUS BODIES, BUT CERTAINLY NOT TO FIGHT OUT THE BATTLE OF WHO IS THE BEST. This is like all the Doctors go an a fight, to decide who is best, it is a cardiologist or a skin specialist or an EnT specialist Doc or an Oncologist – and it is clear that EACH ONE OF THEM ARE IMPORTANT, the reason they specialise is to understand the issue in detail to serve the patient better. Similarly, the CAs CSs CMAs Advocates should remember that they are here to serve the legal and compliance system be it Tax, FEMA, Companies Act or the whole other gamut of business laws including the other domain knowledge needed for each one of them esp to cost auditors.

    And its great that at this evolutionary juncture, we are asking these questions.So lets just sort this issue out – all this can change for the better of each one involved.

    It should be CA&CS&CMA&ADVOCTES and NOT CA VS CA VS CMA VS ADVOCATES!! Out of dust and mud comes out gold, good that these questions are put- lets get the gold out of this!!

    But, now the question is how to sort this out!? Whom to go to??

  35. KD says:

    Respected All,

    Everyone over here from the field of CAs, Cs and ICWA are there to save their respective work or say revenue of them or increase the same. Everyone talking in their own individual capacity.

    Instead of commenting on each others comment and shows that who are superior and govt. will raise the bar in whose hand are the future things…So stop all nonsense things things which you are doing and lets decide the govt. what to do…

  36. B.S.K.RAO says:

    Atul Sab,

    Why Govt. should worry about professional bodies & core competence of their members. Govt. wants revenue ? Hence, whatever you suggest to widen tax bases to increase revenue may be considered by the Govt. Further, tax audit is not a rocket science to confine the authority on only CAs. I think, Govt. is now repenting its act of allowing only CAs to conduct tax audit in 1984.

    • Atul says:

      @ Mr. BSK Rao.

      Let me explain something practical and real to u.

      you see if we earn Rs. 100, We are paying atleast a minimum of 50% tax( yes ma friend, this have been confirmed by revenue department in 2011, at a minimum, middle class people are paying almost 50% of taxes-bot IDT and DT). Again they want us to pay more, but if its provides satisfaction to our need, then this taxation stuffs can be justified. In USA, you have 50% tax, and you get lots and lots of facilities which are lots above the basic requirement. But in India, forget about something extra, we are even not getting the basic facilities….means c’mon you see…its more than 65 yrs of independence and still we are developing…still there are no electricity in many part of the country…you know what, the revenue generated by IDT and DT collectively stood at 11.3 Trillion Rupees. Isnt it enough for the welfare of general public. we all know where this moneys are going…to the foreign banks….so for what reason u want me to pay tax…? for to build up the wealth of corrupt officials and politicians…?…and if yes…then u will nothing other than the 8th wonder of this world, who likes giving his hard earned money to corrupts.

    • Atul says:

      @ Mr. BML
      On hard foot…let me warn you to mind your words…you are saying that the ICAI or its officials are leaking question papers…wholly crap…it is defamatory and will be followed by a suit….this can be avoided, if you apologize publicly here, and if not be prepared for the consequence.

      Now, let me tell you something about me…I am a qualified CA as well as a CS. So its not I am concerned about my revenue. Works are given seeing the expertise not the professional qualification. And the thing that you talk about begging, ICAI in its own have never gone to ask for any kind of superior support from the govt. Taxation works have been allotted to CAs seeing their capabilities in which CSs failed prior to 1984.

      And lastly the scope of taxation is not limited to only 2-3 papers, a person with limited knowledge will acknowledge this; taxation in its own is much much wider than two three papers my friend.
      I can say CAs are better in taxation than CS because I know the difference between both of these field.
      CS is limited only to the theoretical field, but CA is much about practical knowledge.

      If I would have been worried about competition as a CA, then I must have raised debate over Companies Act 2013 which provide various opportunity to the CS only. But I didn’t cause I know this field is something where Company Secretaries are better than Chartered Accountants. So I can say that no CA will be worried about competition because ultimately taxation works will lie on their laps only. But I can say that you are a bit jealous of CAs seeing their high ranking or thinking you have done a mistake by ignoring CA over CS…..oh wait…that decision of yours was not a mistake…I think…it was rather a way out…for choosing an easy option…..isnt it…? And for your knowledge, ICAI is setting the toughest papers for its examinees from almost a decade back. Not like CS institute in which you are getting T/F, Fill up, MCQs i.e., one marks question in the professional and executive level…huh…!!! First be prepared…and don’t be worried…no one will be filling any suit against you…I was showing the you the mirror, the way a CS talk or deals with the clients.

    • Atul says:

      @ Mr. BML

      you asked me that whether dentist were performing audit of Satyam and Ssrada.

      So my answer is – might be….

      You did a mistake in interpreting what I said…no matter..it was expected from a CS..

      I compared CS with dentist not the CAs with it..

      ..” Wholly crap….how could u let CS and CWAs for conducting tax audit.

      Taxation in India is the core field of CAs and will always be such.

      Allowing CS or CWAs to conduct Tax Audit will be like allowing an DENTIST to perform RETINAL SURGERY.

      I think CAs are the best in helping their clients to save tax, and thus GOI wants to empower CS and CWA in this field so that its revenue can be increased. “..

      • BML says:

        Mr ATUL

        Once again u show u r direness….to get Govt cover….U are afraid of to prove the survival of the fittest….At least u realized that others are Dentist ……not like Bare footed doctors…u always try to stage manage…and finally hire tax expert to fight the case…Can you tell me how many of u appear before Tribunal Cases….Do you guys have guts…to appear….Hah you give savings to you client ….Can you give me such name of the client or list of clients….Under globalization u still need to beg to Govt…for some Audit works….U know that no one in this world can tell that U guys have given savings and generate revenue to the Govt….At least you realized that we are dentists who at least not begging for the work…Can able to prove their capabilities…..I hope you are updated with all the global activities across globe….where it is open to the professional bodies not restricted to one….as they know the consequence of the fake certification….Cheers….hope Govt needs to continue with their rationing with u guys…else where u will go to eak out your existence…..

  37. B.S.K.RAO says:

    Atul Sab,

    Particulars of Income-tax admitted in tax audit cases for Asst. Year 2013-14 that relates return filed in ITR-4, 5 & 6 provided by DIT(S) as at 31.12.2013 are as under :-

    Total Tax Admitted in ITR-4 Rs. 20,175/- Crores
    Total Tax Admitted in ITR-5 Rs. 18,358/- Crores
    Total Tax Admitted in ITR-6 Rs. 2,33,604/- Crores

    Margin derived by farmers is not taxed in Income-Tax Act, but margin derived by next sellers of such agricultural output is taxed in their hands in Income-Tax Act. Presuming the output of corporate assessees reach the ultimate consumer in three stages & considering tax admission of Rs 2,33,604/- Crores in corporate case and 50% of such corporate assessees do business with non-corporates covered by tax audit, who are in between the corporates & retailers. I am of the strong view that combined Income-Tax admission as per return filed in ITR-4 & 5 covered by tax audit U/s 44AB for the Asst. Year 2013-14 should have crossed at least Rs. 15,00,000/-Crores. (Basis being 80:20 ratio of Ag. & Ind. Output).

  38. B.S.K.RAO says:

    Atul Sab,

    If your statement is correct, why Legal Practitioners, Cost & Management Accountants, Company Secretaries & Income-Tax Practitioners are also authorised to prepare return under Rule 12A of Income-Tax Rules, 1962. I say that because of inserting tax audit clause U/s 44AB on the behest of ICAI (Financials)in 1984, original intention of legislature & drafters of Income-Tax Act, 1961 by learned officials in finance ministry has been struck down. This was also cautioned by senior member in CBDT Sri.P.C.Padhi at that time.

  39. Atul says:

    Wholly crap….how could u let CS and CWAs for conducting tax audit.

    Taxation in India is the core field of CAs and will always be such.

    Allowing CS or CWAs to conduct Tax Audit will be like allowing an DENTIST to perform RETINAL SURGERY.

    I think CAs are the best in helping their clients to save tax, and thus GOI wants to empower CS and CWA in this field so that its revenue can be increased.

  40. B.S.K.RAO says:

    TO FIGHT & CONQUER IN ALL BATTLES IS NOT SUPREME EXCELLENCE BUT IN BREAKING THE ENEMY’S RESISTANCE WITHOUT FIGHTING…..IS THE SUPREME EXCELLENCE

  41. B.S.K.RAO says:

    DEAR ALL FRIENDS,

    EVERYBODY SHOULD KNOW THAT PRACTICE OF LAW IS THE PREROGATIVE POWER OF ADVOCATES IN INDIA, WHEREAS PRACTICE OF COST ACCOUNTS, MANAGEMENT ACCOUNTS AND FINANCIAL ACCOUNTS IS NOT THE PREROGATIVE POWER OF ANY PROFESSIONAL BODY IN INDIA

  42. krunal MBA says:

    it is very welcome move from the goverment, monopoly alwyes destroy Revenu, very very congretulation to cs & ICWA Student.

  43. B.S.K.RAO says:

    DEAR ALL RESPECTED CA FRIENDS,

    Please argue academically on making study of Section 288(2) of Income-Tax Act read with Rule 12A of Income-Tax Rules and Section 145 read with 14 Accounting Standards of CBDT, instead of saying that Non-CAs posting comments here with jelous (Here, it is presumed that all five class of persons who are authorised to prepare return under Rule 12A among total eight class of persons authorised represent the assessee U/s 288(2), possess the knowledge of Section 145 read with 14 Accounting Standards of CBDT, required for Income-Tax Practice). Because certain qualification has been fixed in Income-Tax Act for these five class of persons. Accounting Standard framed by ICAI & IFRS not required for Income-Tax Practice.

    I hope that my fellow CAs posting comments in this blog consider my genuine request to enable DTC-2013 to come out smoothly with good shape, both in the interest of all Tax Professionals & Govt. revenue, keeping in mind that status of CAs are not disturbed in draft DTC-2013.

  44. anonymous says:

    Its amazing, Every one is trying to prove that they are better than others. Bullshit, You are fighting like dog. Try to be best in your area. Be the bigger in your field than fighting for others field. You must know the story of Cat and Monkey. However if you want share in others then be prepare to Share with others also. And at last who are fighting here are worthless and workless person. By speaking like politician you are annoying us.

  45. SATHYANARAYANA says:

    DEAR ALL,

    IT IS THE TIME TO CHANGE. THE COMPANY SECRETARIES AND COST ACCOUNTANTS ARE ALSO STUDIED SO MANY LAWS. HENCE THE CS AND ICWA INSTITUTES SHOULD APPROACH THE GOVERNMENT TO INCLUDE THEM TO INCLUDE IN THE LIST OF ADVOCATES AS PER ADVOCATES ACT. THERE ARE SO MANY ADVOCATES EARNING CRORES OF RUPEES IN CASH WITHOUT PAYING TAX. THEIR CONSULTNCY FEES IS BASED ON DISCUSSION WITH THEM IN MINUTES.THE SUPREME COURT IS THE ULTIMATE AUTHORITY AND CS AND ICWAs CAN DO MIRACLE TO BRING PROPER INTERPRETATION OF BUSINESS LAWS OF THIS COUNTRY BY APPEARING IN COURTS INCLUDING SC.

    IT IS ALSO A GOOD MONEY MAKING OPPERTUNITIES TO CS AND ICWA PROFESSIONALS

    REGARDS
    SATHYANARAYANA

  46. K.MUKAMBIKA says:

    MANDEEP SINGH JI,

    As CAs does not have the knowledge of Income-Tax Law, Minor Acts & their statue authorised to write financial accounts only, they failed to report section wise wrong claims in tax audit report Form No.3CD uploaded in e-filing website of Income-Tax Deptt. in respect of return filed for the Asst. Year 2013-14.

  47. MANDEEP SINGH says:

    K.MUKAMBIKA JI
    I understand legislature given power of only financial accounting but I talking about section 288(2) according to that CA’s are doing practice of law for which they are not authorized.

  48. SELVARAJ R ADVOCATE says:

    I WOULD LIKE TO APPRECIATE THE EFFORS OF CS/CMA INSTITUTION AND ALL PERSONS WHICH ARE CONCERNED TO WORK IN THE INTEREST OF REVENUE OF OUR COUNTRY.

  49. B.S.K.RAO says:

    Dear All Friends,

    ACTION OF LEARNED OFFICIALS IN MINISTRY OF FINANCE, COMMITEE ON DIRECT TAXES CODE, 2013 IS APPROPRIATE FOR THE FOLLOWING REASON, I MIGHT HAVE USED THE WORD MOST APPROPRIATE, IF ALL PERSONS AUTHORISED TO PREPARE RETURN UNDER RULE 12A OF INCOME-TAX RULES, 1962 MIGHT HAVE INCLUDED IN THE DEFINITION OF “ACCOUNTNANT” IN DIRECT TAXES CODE-2013 :-

    On date, MAJORITY of 65,570 PRACTICING CHARTERED ACCOUNTANTS have crossed the aged of 50 YEARS, if such monopoly is still retained for Tax Audit in Income-Tax Act/Direct Taxes Code, the day will come that Income-Tax Deptt. will not get voluntary compliance in Tax Audit cases.

  50. K.MUKAMBIKA says:

    MANDEEP SING SIR,

    Indian legislature has vested the power of only Practice of Financial Accounts (Accounts Relating to Trading Activity only) on Institute of Chartered Accountants of India and Practice of Cost Accounts & Management Accounts vested on Institute of Cost Accounts of India. As Management Accounts is nothing but preparation of Cash Flow Statement & Ratio Analysis on Cost & Financial Accounts, only Institute of Cost Accounts of India should be called as full accounting body in India. Hence, Cost & Management Accountants only entitled to Audit of Ltd Companies in Companies Act. But, I do not understand, Why CMA’s are not included for Audit of Ltd Companies on deleting CA’s from Companies Act. As per the authority granted by Indian legislature, CA’s are only entitled to audit Trading Accounts in Commercial Tax Laws of India only.

  51. MANDEEP SINGH says:

    Sir,
    I am always confused regarding thinking of our government. Our legislature authorized “in-person” practice of law in courts & by authorized agents whose are not law professional before tribunals . “Practice of law” is a complicated matter and depends upon day by day amendments & judgments.
    On other hand Practice of accountancy & method to do this job is near about same since our Independence. then why Reports from only Chartered Accounts. Why assessee is not authorized to certify their Balance sheets u/s 44AB of income tax act 1961.

    GOVERNMENT NEED TO REVIEW THE MATTER. WHETHER THERE IS ONLY INTENTION OF GOVERNMENT TO GIVE FULL EMPLOYMENT TO ICAI MEMBERS.

  52. MANDEEP SINGH says:

    sir,
    If everybody is authorized by inserting clauses like section 288(2) then there will be no need of law colleges & law profession in india. As like Chartered Accountants are qualified Accountants they should be confined to practice of accountancy. Work of accountants become over when books of account & Balance sheet prepared.Submission of forms under Income tax act should be leave on law professionals because these forms related to interpretation of laws as like form 3CD, 3CB & others.
    ICAI have trespassed in legal profession by way of unnecessary Reports under Income tax law.

    Why Practices of two profession by ICAI members:-
    1) Practice of accountancy.
    2) Practice of law without any degree in law.

    DO YOU NOT THINK SUCH KINDS PRACTICES OF ICAI IS A TRESPASS IN OTHERS AREA.

  53. B.S.K.RAO says:

    In a letter containing 13 pages bearing No.DTC/2012-13/REP-24 Dt.29.01.2013 addressed to Deptt. of Revenue, Ministry of Finance, Govt. of India by The Institute of Chartered Accountants of India, President, CA Jaydeep Narendra Shah has stated as under:-

    Shri BSK Rao in his Letter Head has mentioned his qualification as B.Com and LL.B; thereafter he has mentioned that he is “AUDITOR” and Tax Advocate”. In common parlance the term “Auditor” is associated with a person auditing the financial statements or cost records. Therefore, it is a matter of investigation as to how Shri.B.S.K.Rao is working as an Auditor

    My Response to Deptt. of Revenue, Ministry of Finance, Govt. of India :-

    Audit means “verification”, depending on the purpose they are classified as Energy Audit, Environment Audit, Product Audit, Process Audit, Legal Audit in USA & Tax Audit in Indian Income-Tax Act etc. Here, person conducting audit should be specialized in that subject. Hence the word “Audit” is not the domain of Chartered Accountants.

    Contents of other pages follows…….

  54. B.S.K.RAO says:

    DEAR PCJ SIR,

    KINDLY SPEAK ABOUT INCLUSIVE GROWTH OF ALL BY INCLUDING TAX LAWYERS ALSO. BECAUSE WE LAWYERS SUPPORTED THE GOVT. TO SEEK VOLUNTARY COMPLIANCE IN FIRST INCOME-TAX ACT, 1922. CBDT, MINISTRY OF FINANCE AND DIRECT TAXES COMMITTEE-2013 SHOULD NOT FORGET THE SERVICES OF LAWYERS AT THAT TIME.

  55. Sujit says:

    To U.S.Tiwari, LLB, FCA, DISA, AFP, AMFI, NSE Cert Technical Analyst

    The questions raised in this blog regarding CA institute is relevant and pertinent.No body is after CA institute which you feel.your sweeping comments like i know thousand CAs blah blah.. does not stand merit.In your last comment other professional should pass CA exam to get into ICAI domain so as CAs to get into others area should posses the requisite qualification. May i request you and other CAs to appeal your council to exempt 3 yrs mandatory article ship for qualified CMAs and CS in service and practice to appear CA exam.I know most of the CMAs will cheer to appear if such relaxation is extended.Like you and some CAs (mis)conception that it is easy for a only CA qualified to pass other exams (ICWA and ICSI)will be proved wrong. If you put an entry barrier of compulsory Article ship for qualified CS and CMA or Lawyers(In service and practice where they can not resign to pursue CA and do article ship) you do not allow an opportunity to prove their capability. And as far as DISA certification is concerned let me tell you one thing.. it seems from your qualification that you are in Capital Market and I have worked and working in MNC Brokerages where a DISA certified auditor fails to understand the basic trading systems working in Alogo,DMA,One touch,Two touch trading style forget about other process flow. The way now days IT plays a critical role I bet DISA qualified auditors are not trained or capable to pinpoint or unearth any bug or identify any lacuna in an automated business environment.Simply they do not posses the skill set.Last year when BSE excluded DISA from system audit,ICAI went on lobbying mode which they do best to restore the status quo and save the bread and butter of CA professionals.

  56. U.D.VENKATESH says:

    INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, STATED TO BE THE ONLY ACT PASSED BY PARLIAMENT BY ICAI DOES NOT HAVE SOCIAL RESPONSIBILITY, INSTEAD IT IS TROUBLING ASSESSEES, GOVT. & PUBLIC AT LARGE

  57. pcj says:

    Actually this cat fire over power and authorisation ws started ICAI when they started interfering other domains. They have no faith in competition they want monopoly in everything by resorting political and lobbying.In my opinion the central and State Govt should give equal recongistion to CA,CS & CMAs for Incomer Tax,Service TAx,Excise, VAT CST,FEMA and other matters.Or let thre be one common institute having three specilisations as per the expertise and competencies of individual course.Economy is growing and everyone should be benefitted by it and equal opportunities should be available to all the three professionals or the allocation of audit and certifcation should be decided as per specilisation. What is the logic that the Govt. gives one particular profession all the power which he even doen’t have the competency

  58. K.MUKAMBIKA says:

    B E W A R E

    WHATEVER THE REPRESENTATION PLACED BY ICAI BEFORE THE GOVT., ALL SUCH REPRESENTATION GOES IN FAVOUR OF THEIR MEMBERS ONLY

  59. K.MUKAMBIKA says:

    B.S.K.RAO SIR

    YOU HAVE CORRECTLY STATED THAT INDIAN LEGISLATURE PROVIDED SPECIAL CLASS OF PERSONS CALLED ADVOCATES TO PRACTICE THE PROFESSION OF LAW BOTH IN LITIGIOUS & NON-LITIGIOUS MATTERS. HENCE APPEARANCE CLAUSE NOT YET ALL REQUIRED IN ANY INDIAN STATUTE. THEREFORE APPEARANCE HAS TO BE DELETED FROM ALL INDIAN TAX LAW STATUTE IN VIEW OF LATEST SUPREME COURT VERDICT IN THE CASE OF BAR COUNCIL OF INDIA VS A.K.BALAJI. SECTION 309 APPEARANCE CLAUSE OF DIRECT TAXES CODE 2013 HAS TO BE DELETED. I AM OF THE STRONG VIEW THAT ONE OR THE OTHER DAY THIS MAY HAPPEN AT THE INSTANCE OF THE COURT

  60. B.S.K.RAO says:

    U S Tiwari Ji,

    Your latest view can only be satisfied on introduction of Tax Practitioners Bill in India, covering all the TAX PROFESSIONALS. If Govt. comes out with such bill with preamble that the said bill is introduced with the intention of protecting Tax Professionals of India who are not Advocates & in the interest of Revenue to Govt., then such bill can not be struck down by the preceedent in the case of Bar Council of India Vs A.K.Bajaji by apex court about the issue of practice of law both in litigious & non-litigious matter by only Advocates, nullifying effect of Section 33 of Advocates Act, 1961. If not Govt. has to delete other than Advocates from the appearance clause in all Indian taxation laws. Because, Indian legislature provided special class of persons called Advocates to practice law. This being the case, appearance clause not yet all required in any Indian statute. That is why TAX PRACTITIONERS LAW is prevailing in various countrys throghout the world. Tax Agent Service Act of Australia & Tax Practitioners Law of Republic of South Africa is an example. Herein, all the members of various professional bodies should mandatorily apply for registration invariably to practice tax law in those countrys

  61. B.S.K.RAO says:

    Thanks U.S.Tiwari Ji,

    Kindly give test mail to raoshimoga@gmail.com to enable me to keep in touch with you Sir

  62. U S Tiwari LLB, FCA, DISA, AFP, AMFI, B.COM(Hons), NSE Cert Technical Analyst -Equity and Derivatives says:

    Resp. friends,
    Agreed with the views of Shri B.S.K. Rao Sir, with the rider that –

    The government must keep in mind the tax evasion angle, forged uploading of returns and the suitability of professionals for uploading various kinds of reports, because the level of knowledge required for uploading different kind of reports will be different.

    Ex.- Form 3CD could be very simple for a proprietorship or partnership but may be quiet complicated in case of corporate assessees. Similarly doing transfer pricing studies and making reports thereon itself is a matter of great expertise.

    Since taxation laws in general and Income Tax Law in particular is very complicated (is it not so?) , and the amendments are very frequent, keeping in mind the changes in the nature of financial transactions, businesses, other legislations and technology, it is always advisable to rely upon the best available professionals be they CA, Advocate or any body else and the issue can’t be left to the mercy of ill equipped people, whosoever, they may be.

    There are end no. of CAs who are not practicing in taxation laws and same is case with advocates and other professionals. Now the biggest challenge before the government is to identify the right pool of professionals who have good undertstanding of not only tax laws but also of technical issues of business, accounting, finance and technology, because these issues are non-separable from tax related issues.

    Of course for smaller assessees, the complications being very low may be left open for all the competing professionals.

    Again the central issue in my opinion is finding the equivalent skill set and evaluation thereof for betterment of revenue and also the assesses and businesses.

    personally I’m very open to the idea of healthy competition at every level and hope that in future many walls will fall down both for CAS, Advocates and other professionals.

    Let’s pray for the betterment of the nation.
    Request you all to cast your votes in Loksabha elections and encourage all your clients to do so.
    Thanks.

  63. B.S.K.RAO says:

    Dear all friends,

    In the span of these 30 years after the introduction of tax audit U/s 44AB of Income-Tax Act by only CAs, ICAI has kept the Govt. in Dark Room by way of self apprisal through their journals & News Papers and other publications. Thank God, now the Govt. has opened its eye on looking at statistics of return filed in tax audit cases.

    On date, Assessee, Non-CA Tax Professionals & CAs should join hands to upload ITR in Tax Audit cases as per the software provided by the vendors Winman & Relyon to avoid repetitive job of filling Tax Audit Report. It is indicated in the e-filing portal of Income-Tax Deptt. that in future, Cost Audit Report, Report under Central Excise & Service Tax has to be uploaded. Ie, in future following persons with pass word for their respective DSC should join hands to
    upload Tax Audit cases

    1. Assessee
    2. Non-CA Tax Professional (Here DSC not required on date)
    3. Chartered Accountant
    4. Cost & Management Accountant
    5. Auditor Under Central Excise & Service Tax
    6. State VAT Auditor (If added in future)

    This may cause further strict hurdle for voluntary compliance in Income-Tax Act.

  64. B.S.K.RAO says:

    U.S.Tiwari Sir,

    While drafting appeals in taxation laws, we have to touch the cause for additions then only we can win the appeal. If we give arguments on other than cause for additions, appeal will be dismissed. Similarly, We are all taking about practice of Indian Taxation Laws only in this blog.

    On behest of ICAI original intention of legislature in Income-Tax Act, 1961 was disturbed by introducing tax audit certifciate U/s 44AB by only CAs in 1984. Again in Finance Act, 2001 wrong amendment carried out in 2nd proviso to Section 44AB of Income-Tax Act. The above article in this blog is the reflection of wrong doing by ICAI.

  65. K.MUKAMBIKA says:

    U.S.Tiwari Sir,

    Your arguments indicates that as CA is tough course, they are entitled for every thing. In this blog we are all discussing about practice of Indian taxation laws. Here, I think persons qualifying such tough course is not required for tax practice. More persons in the line of tax practice more revenue Sir. Govt. can not relay on tough course people to expand genuine tax base in India. That is why Tax Practitioners Law prevailing in majority of the countries through out the world, wherein 70% to 80% of population are under the tax net.

    One more thing Sir, U/s 288(2) of Income-Tax Act eight clause of persons are authorised act as representative of assessee. If you kindly go through Rule 12A all eight class of persons are not authorised to prepare return. Ie, persons possessing prescribed qualification are only authorised to prepare return. Hats off to persons drafting Original Income-Tax Act, 1961, because it has been drafted forecasting the future. Only when CA Certificates started entering Income-Tax Act since 1984 (46 Plus Certificates on date)taking away the rights of other class of tax professionals, strict hurdle for voluntary compliance arisen. BECAUSE ORIGINAL INTENTION OF LEGISLATURE IN RULE 12A OF INCOME-TAX RULES, 1962 HAS BEEN STRUCK DOWN, DUE TO INTRODUCTION OF MANDATORY CERTIFICATES FROM ONLY CAS. This is the reason for not widening tax base in India. That is why only 2% of population in India are under the tax net Sir.

  66. U.S.Tiwari, LLB, FCA, DISA, AFP, AMFI, NSE Cert Technical Analyst says:

    Dear Friends,

    every one seems to be running behind CA. Is it the pain of not being able to clear CA exams or some personal enmity? , I fail to understand. None of the people who is posting against CA seems to have qualified CA, whereas I know thousands of CAs who are not only qualified lawyers, particularly those who are in practice , but also have many other reputed qualifications as suffix to their names. It shows the mettle of CA (exceptions are always there), but I have rarely found a person having first obtained any other qualification and then passing CA exams.
    No CA can successfully practice, in my personal opinion without good understanding of laws, which of course may be obtained through formal legal qualification or informally through self studies, seminar, conferences etc.

    My dear friend, I found passing many other exams including LLB at least 100 times easier than CA exams, that is why I feel pain when somebody says that CAs are inefficient.
    So better my dear friends, we must remove the deficiency lying within ourselves, instead of pointing out fingers at others.
    Hope my words do not hurt any body personally.

    • TAXWELL says:

      NOW BAR CONCIL OF INDIA MUST TAKE STEP FOR PROTECTION OF BASIC RIGHT OF ADVOCATES TO PTRACTISE TAXATION LAW ALSO.ADVOCATES MUST ENJOY TAXATION PROFESSION WITH SOME POWERS

  67. B.S.K.RAO says:

    K.MUKAMBIKA MADAM,

    IN THIS COMPUTER ERA & INTERNET ONE CAN ACQUIRE KNOWLEDGE ON ANY SUBJECT IN WHICH HE IS INTERESTED AND HENCE CPE CREDIT HOURS CREATED AS RECORD BY ICAI TO SHOW IT TO GOVT. IS NOT YET ALL REQUIRED. EVERY BODY KNOWS WHAT IS HAPPENNING IN CPE CREDIT HOURS FROM THE LATEST CASE UNDER COMPETITION ACT ON ICAI. I HOPE THAT IN FUTURE ICAI WILL CARRY OUT MEANINGFUL WORK IN THE INTEREST OF NATION KEEPING IN MIND THAT OTHER CLASS OF PROFESSIONALS ARE ALSO LIVING IN INDIA.

  68. K.MUKAMBIKA says:

    LET US ALSO MAKE PRACTICAL CHECK THAT PERSON WHO PASSED CA CAN GIVE CLOSING ENTRIES IN ACCOUNTING PACKAGE AFTER FINALIZING ACCOUNTS. IN THIS COMPUTER ERA PRACTICAL EXPERIENCE OF ICAI FINDS NO MEANING TO RECOGNISE THEM FOR AUDIT.

  69. K.MUKAMBIKA says:

    IN EVERY EXAMINATION OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, IT IS GENERATING ALMOST 98% RIVALS WHO TURNS OUT TO BE NEGATIVE FORCE FOR THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA. CAN ANY ONE IMAGINE THIS. IN FACT, PERSON WHO PASS CA EXAMINATION CONCENTRATE ONLY ON STUDIES RATHER THAN PRACTICAL EXPERIENCE. EVEN CPE CREDITS HOURS OF ICAI IS ALSO DUMMY & FORCED ON MEMBERS. THIS IS EVIDENT FROM LATEST CASE ON ICAI UNDER COMPETITION ACT

  70. K.MUKAMBIKA says:

    LET US MAKE A PRACTICAL CHECK BY CALLING DISA CERTIFICATE HOLDERS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, BY PROVIDING A COMPUTER WITH DOS, WINDOWS, UNIX OR LINUX OPERATING SYSTEM AND OFFICE SOFTWARE

  71. K.MUKAMBIKA says:

    SRIKRISHNA SIR,

    I too agree with your statement Sir. One more thing, how many of the DISA CERTIFICATE holders of the Institute of Chartered Accountants of India knows computer operation, what is operating system & why it is called “stage for performing drama”.

  72. MANDEEP SINGH, ADV. says:

    Many of the wrong claims in Tax Audit Report Form No.3CD are required to be reported on interpreting minor acts such as Bonus Act etc. Here, my question is how come CA/CMA/CS report those wrong claims in Form No.3CD without understanding those minor acts, which we Advocate study in law course. This indicates that filling up tax audit report Form No.3CD is a clear case of practice of Income-Tax Law. Therefore, Advocates should furnish Tax Audit Report Form No.3CD

  73. B.S.K.RAO says:

    Following are the information given by Director of Income-Tax (Systems), New Delhi about stastical data on tax audit:-

    > 16,66,209 Tax Audit Returns filed for Asst. Year 2011-12
    > 18,03,049 Tax Audit Returns filed for Asst. Year 2012-13
    > 14,27,764 Tax Audit Returns filed for Asst. Year 2013-14

    When Central Board of Direct Taxes mandated to upload Tax Audit Report for the Asst. Year 2013-14, it clear from the above data that number of Tax Audit Returns have come down substantially. From these stastitcal data, it is evident the ICAI is not only regulating their members, but also regulating compliance under Indian Taxation Laws.

  74. K.MUKAMBIKA says:

    Dear all,

    Such high brilliant like CAs not required for tax practice. If such brilliant come for tax practice they will make all manipulation, use vibrant tax planing tools to recover more fees from clients.

  75. SRIKRISHNA says:

    Dear Friends,

    I am B.Com, LL.B & also completed CA Articleship. As far as my experience is concerned, I have gained much from studying LL.B.Course which is helping me to give day to day advice to my clients in my tax practice. In CA Course, I just learnt making 2+2 = 6 & how to bribe tax officers. This is 100% true & reality Sir. In LL.B course I have studied more than 100 Acts & minor Acts which is helping me in day to day life. I am of the strong view that every Indian citizen should do LL.B. As far as CA is concerned, it is only a tough course to pass, but you will not learn any thing other than what is stated about.

  76. MANDEEP says:

    A.K. Balaji Vs. Government of India

    (2012) 35 KLR 290 (Mad.)
    IN THE HIGH COURT OF JUDICATURE AT MADRAS
    DATED : 21.02.2012
    C O R A M

    THE HON BLE Mr. M.Y. EQBAL, CHIEF JUSTICE
    and
    THE HON BLE Mr. JUSTICE T.S. SIVAGNANAM
    W.P. No.5614 of 2010
    and
    M.P. Nos.1, 3 to 5 of 2010
    Head Note:-
    Advocates Act, 1961 – There is no bar for foreign lawyers or law firms to visit India for temporary periods on a “fly in and fly out” basis to advise their clients on foreign law and diverse international legal issues. They are however not permitted to practice Indian law, either in relation to litigation or advisory matters, unless they qualify and enroll as advocates and fulfill the requirements of the Act and Rules. The activities performed by BPOs and LPOs do not constitute practice of law and hence do not conflict with the Act. The Bar Council of India may take necessary steps in relation to the practice of law by chartered accountants and management firms, which is contrary to the Act.
    A.K. Balaji
    .. Petitioner
    versus
    1. The Government of India, rep. by its Secretary to Government, Law Department, 4th Floor, A-Wing, Shastri Bhawan, New Delhi 110 001.
    2. The Government of India, rep. by its Secretary to Government, Home Department, North Block, Central Secretariat, New Delhi 110 001.
    3. The Government of India, rep. by its Secretary to Government, Finance Department, North Block, Lok Nayak Bhavan, New Delhi.

  77. U.S.Tiwari, LLB, FCA, DISA, AFP, AMFI, NSE Cert Technical Analyst says:

    Dear Friends,
    Having gone through various pleas for and against the proposed amendment, I’m of the following view-
    1. That so long as person possessing equivalent (remember, not same) qualification and exposure are assigned a particular assignment, by any statutory authority, there is no harm, but there should be some well accepted mechanism of measuring equivalence, so that, only the person possessing a certain skill set, are allowed to practice, a particular profession/ area of profession.

    2. The world of professional opportunities is changing very fast and only the most competent will be able to survive and grow . Let the market forces determine as to who the best professional is, subject of course to, passing some equivalence test , to be conducted by an independent authority to practice any field and further common CPE programmes for continuous knowledge updation.

    3. Let the lawyers(LLB) who are qualified as CA/CS/CMA practice the certification and audit area and CA/CS/CMA who are qualified as lawyers (LLB)should be allowed to practice in the court of law . Taali dono haath se bajti hai.

    4. Similarly CA/CS/CMA professional should be allowed to practice in any two fields like CA+CMA or CA+CS or CS+CMA, if not practicing as lawyer besides CA/CS/CMA, subject of course to membership of at least, any two of the institutes.

    5. There are many lawyers who have good understanding of accounts (remember not everyone) and similarly there are many CAs who have excellent knowledge of law ( again remember not everyone). There should be some independent certification/ test, conducted by some independent body, to judge the knowledge of accounts & finance, Audit, Taxation, financial planning etc, in case of lawyers and Law in case of CA/CS/CMA and on passing of such test the lawyers should be allowed to practice CA profession in limited way and CAs should be allowed to appear before at least the h’ble High Courts in commercial litigations and taxation matters.

    6. It should be give and take kind of reciprocal arrangement. Only sacrifice of one side will not do the justice.

    7. I fully agree that all the four professionals are very competent in their respective fields, may have working knowledge of others field, but are definitely not experts of other’s field. Let the expertise of others field be tested through some independent exam by an independent authority, and on passing of the same, these over enthusiastic professionals should be allowed to practice other profession also, subject to some mandatory , effective and continuous professional education.

    8. As far as my interaction with some of my CA friends is concerned, they are ready for any exam be it of LLB/CS/CMA or CFP etc. I hope, that my other fellow professional friends, are equally enthusiastic about passing CA exams, which are not tough to pass at all, in my personal opinion (because I passed the same in my first attempt, within 3 years only). So best of Luck to all Lawyers/CS/CMA who are willing to enroll for CA course. Come on my dear friends, its really easy. Try your luck, pass the exams and practice as a CA and best of luck to all the CAs also, who may feel enthused, from my write up to write Law/CS/CMA exam .

    Best of luck to all.

  78. Rohan Paul says:

    Syllabus of CS and CWA is as wast as CA so i dont think there is anything wrong in this move.

  79. U.D.VENKATESH says:

    INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA PASSED BY AN ACT OF PARLIAMENT
    USED BY ITS MEMBERS TO SATISFY THEIR PERSONAL AGENDA

  80. K.MUKAMBIKA says:

    THIS IS A LESSON FOR INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA TO THINK BEFORE INSERTING MANDATORY CA CERTIFICATES IN ANY STATUTE BY WAY OF BRIBING BUREAUCRATS

  81. B S K RAO says:

    COMMON CONSENSUS AMONG TAX LAWYERS AND CERTIFIED PUBLIC ACCOUNTANTS(LARGEST ACCOUNTING BODY IN THE WORLD)IN UNITED STATES OF AMERICA. THIS IS REQUIRED IN INDIA NOW

    Accountants and lawyers have struggled for some time in their attempts to reach a consensus concerning their respective roles in income tax practice. 2 In 1944 the National Conference of Lawyers and Certified Public Accountants was formed. This group, comprised of members of both professions, sought to resolve issues of mutual interest in a cooperative manner. 3 Much of the case law with respect to this issue is old. After 1966, with the apparent settlement of the federal preemption issue, the volume of case law dropped significantly. 4 However, this seeming tranquility has masked continuing doubt about the proper parameters of certified public accountants’ practices.

  82. B S K RAO says:

    ICAI PUBLICATIONS IN THEIR JOURNALS & NEWS PAPERS AND ITS PROFESSIONAL ETHICS IS THE MAIN IMPACT FOR THE ABOVE CHANGES REFLECTED IN DTC-2013

  83. K.MUKAMBIKA says:

    B.S.K.RAO Sir,

    I agree with all your comments in this blog. Because, it indicates that you are working in the common interest of all including Govt. revenue. There should not be any monopoly in tax practice. Because, it causes strict hurdle voluntary compliance. Let these diversified group of tax professionals carry on the job for which they are authorised in their respective statute separately. As for as Indian Taxation Laws are concerned, all these well diversified group of tax professionals should be treated alike to widen genuine tax base of assessees in India. To achieve this motto, Tax Practitioners Bill required for India & need of the hour.

    • TAXWELL says:

      i like to say It is good move by ministry of finance & CBDT. Monopoly is not good on revenue side as well for assessee. filling form 3CD under income tax is 70% interpretation of laws. So for Advocates more than five years experience in taxation filed should be authorized for tax audit.

  84. B.S.K.RAO says:

    Bar Council of India, Institute of Company Secretaries of India, Institute of Cost & Management Accountants of India and Institute of Chartered Accountants of India should join hands in the common interest of their members who are authorised to practice taxation laws in India to resolve the issue of “Practice the Taxation Laws” in India. Here the question is, who is going to bell the cat in the above matter ? I think Ministry of Finance & Ministry of Law, Govt. of India should take initiative. If not time will come that all persons other than Legal Practitioners has to be deleted from “Appearance Clause” in all Indian Taxation laws. That is why, I am suggesting the Govt. to come out with Tax Practitioners Bill in India with the preamble that other than Legal Practitioners are also practicing Indian Taxation Laws, in order to protect thier interest & also in the interest of Govt. revenue, this bill has been introduced. Then only, such Tax Practitioners Bill can not be struck down by way writs before court of law.

  85. Rajnish R Singla says:

    Dear friends,
    we Advocates should do what we are supposed to do ; only practice the profession of law.

  86. Rajnish R Singla says:

    Dear friends,
    Advocates should do what they are supposed to do; practice profession of law only.

  87. B.S.K.RAO says:

    Opinion, clarification & expert advice given by PCA, PCMA, PCS & Tax Practitioners about facts of the assesses case does not amounts to unauthorized practice of law. However, they should appear against summons issued by the Deptt. under CPC/Evidence Act & not by the strength of power of attorney. If such opinion, clarification & expert advice given by those persons through the route appearance clause U/s 288(2) of Income-Tax Act & Section 309 of DTC-2013 on their own by the strength of power of attorney, it amounts to unauthorized practice of law, totally illegal, null & void.

    Assessee himself or person regularly employed by the assessee taking the route of appearance U/s 288(2) of Income-Tax Act or Section 309 of DTC-2013 to represent the case before the assessing authorities does not amounts to unauthorized practice of law. This exception given by Advocates Act read with Bar Council of India Rules & Apex Court of India. (Persons regularly employed by the assessee should produce proof for employment only)

    Therefore, persons other than Legal Practitioners, assessee himself & person regularly employed by the assessee require deletion from Section 288(2) of Income-Tax Act & Section 309 of Direct Taxes Code, 2013 to meet the end of justice.

  88. MANDEEP says:

    PRACTICE OF ACCOUNTANCY
    Now we come to matter regarding practice of accountancy in income tax law for NON-CORPORATE assessees. Sir in income tax law basic principals of accountancy adopted to prepare reports for NO-CORPORATE assessees. Any person who honestly study BOOK KEEPING for one year, he can audit perfectly under income tax law for Non-Corporate assessees & their are no need of CA’s for audit work.
    I understand for income tax law accountancy knowledge required. But any minor mistake in accountancy upto 50000 not harm huge financial loss to assessee. Maximum tax addition will be 50000 & hardly financial loss will be of 5000 only. BUT ON OTHER HAND IN PRACTICE OF LAW MINOR MISTAKE IN INTERPRETATION OF WORDS CAN BE REASON OF HUGE FINANCIAL LOSS TO ASSESSEE.
    Conclusion: Practice of accountancy can do person who is 10+2 with commerce for Non- Corporate assessees under Income Tax Law. But for Practice of Law should be only law professional who knows basics of law very well.

  89. MANDEEP says:

    Ravi sir,
    Sh BSK RAO ji explained very well about interpretation of laws. I know CA’s are doing study of contract, labour & company law in their studies. But CPC, CRPC , DRAFTING & PLEADINGS,INTERPRETATION OF LAWS, CROSS EXAMINATIONS & EVIDENCE ACTS ARE BASICS FOR PRACTICE OF ANY INDIAN LAWS including income tax. If you are ignorant of basic principal of any work then you can’t be capable to do that work properly & mostly CA’s not know basics for Practice of Law. For your kind knowledge you can study order XIX of CPC which explained about Affidavits. If we follow XIX of CPC then there is no need of Audit Reports under income tax act.
    Now I come to your question why mostly assessee represented by CA’s. sir main reason for that Statutory Audit Reports inserted in income tax law to give identity to CA’s before 1984 hardly 1% Indians know about CA’s. Indian assessee is compelled to to take services of CA’s against their desire.

  90. B S K RAO says:

    Interpretation is required both in Practice of Cost/Financial/Management Accounts & Practice of Law. Interpretation of Cost/Financial/Management Accounts is not a tough job in this computer era. Even an matriculate person correctly say 4+4=8. Whereas practice of law is tough job. One should not go with plain reading in statute, but should understand the intention of the legislature to interpret the law. This can only be done by Advocates. Hence, it is suggested to govt. do not allow other than Advocates to plead & act before the Income-Tax Authorities at all levels to avoid mounting up of litigation before Tribunal & High Courts in tax matters.

  91. B S K RAO says:

    RAVI SIR,

    How many CA’s know parts of deed, drafting, pleading & conveyancing, but still they draft deeds in speaking language without giving full effect to contract. I have seen in may cases of deeds drafted by CA’s. Even CAs does not know the impact of furnishing affidavits & sworn statement in the course of Income-Tax Proceedings & put clients in to trouble & litigation. Many of the litigation in tax matter pending in Tribunal & High court because of wrong advise given by other than Advocates at original side of practice. That is why I suggest Advocates should only be allowed to plead & act before the Income-Tax Authorities at all levels.

  92. ravi says:

    Mr. Mandeep sir,

    I agree with your view, If CA’s are allowed to appear before the court, then they will also learn the CPC & other laws. Now it is not necessary for CA’s. CA’s knows not only Income Tax but also study the Indian contract Act, Companies Act, labour Laws & some other laws. While advising the matter relating to Income Tax, they can’t advise by ignoring the other laws. So don’t thing that they are ignorant of other laws. Only thing they are experts in Income tax Law, therefore they are appearing for appeals for Income Tax matters. First you should agree that CA’s are capable for doing this. That is why the clients chose the auditor than advocates for their income tax matters.

  93. Rajesh Thakkar says:

    Dear friends,

    It is well come move definitely for tax advocates propose to give the tax audit. The CA/CMA and CS class said that we have a right to practice of taxation law as per their respective acts. Dear CA/CMA and CS please note that your council has given the only opinion that their members can do the practice of taxation law.

    Dear friends, the opinion can’t take the place of law and there is no value of the such opinion. Your councils are misguide their members.

    The words appear is never giving you right of practice. The meaning of the word appear represent only to physical appears on behalf of assessee. The word appear is not giving any right of practice to such class. The word practice is connected with representation and is only right of advocate class.

    All the three class of the professional only appear before the tax authority on the basis of power of attorney. And power of attorney holder can’t argue the case. The Power of attorney holder is only the messenger of the assessee.

    We the lawyer community should asked before the CBDT that we are not behind the the audit but to remove all other class from the section 288 of the Income-tax Act and such other Act like Excise, Service tax, Company law etc as it is advocate’s right.

    The CBDT is offering the audit work to tax advocate as a compromise level.

  94. MANDEEP says:

    These audit certificates are also strict hurdle in the way of security transaction tax. Mostly indian wants to do future trading in share market on margin money basis. But in recent times many person got notices from department for not audit their accounts u/s 44ab & facing penal provisions for non audit. Now every person in fear & not doing tradings, which causes huge STT & Income tax loss.Financial loss to the broker companies in share trading & indirectly revenue loss to government for reduce income of such companies.
    GOVT. NEED TO THINK

  95. TAXWELL says:

    BUT BCI MUST TAKE EFFORTS FOR THE BENEFITS OF PRACTICING ADVOCATES IN TAXATION.OTHERWISE IT WILL BE MORE TOUGH FOR TAX PRACTICING ADVOCATES TO CONTINUE TAX PRACTISE ONLY ON LLB DEGREE.

  96. B.S.K.RAO says:

    TAX AUDIT U/S 44AB IN INCOME-TAX ACT WAS INTRODUCED IN THE REGIME OF PRANAB DADA IN 1984 BY CONGRESS GOVT. UPA GOVT. EXPANDED THE DEFINITION OF ACCOUNTANT IN DTC-2013. HOWEVER, IT IS A WELCOME MOVE BY UPA GOVT. IN THE CENTRE. THIS WILL DEFINETLY HELP TO INCREASE THE GENUINE TAX BASE IN DUE COURSE. IE, NEW NON-TAX CA TAX PROFESSIONALS WILL ENTER TAX PROFESSION FROM NOW ONWARDS TO SUPPORT VOLUNTARY COMPLIANCE IN ALL INDIAN TAXATION LAWS.

  97. B.S.K.RAO says:

    PCJ Sir,

    You have correctly said,

    Audit means “verification”, depending on the purpose they are classified as Energy Audit, Environment Audit, Product Audit, Process Audit, Legal Audit in USA & Tax Audit in Indian Income-Tax Act etc. Here, person conducting audit should be specialized in that subject. Hence the word “Audit” is not the domain of Chartered Accountants.

    HENCE, WE ALL TRY TO REMOVE WRONG NOTION IN THE MINDS OF PUBLIC THAT AUDIT MEANS CHARTERED ACCOUNTANTS.

  98. SURYA KRISHNA says:

    Rightly said by Srikrishna Sir.

    Advocates too have accounts background either through their graduation or through other courses. If the CBDT is with the view that Advocates are noway related to accounting then it may allow advocates with accounting background to sign audit reports. CBDT may fix a eligible criteria for accounting knowledge for advocates.

    Tax audit needs knowledge of both Accounts and Law. All the four class of Professionals, CA, CS, CMA and Advocates have knowledge in both. They practice their profession under statutory bodies regulating them. The signing of Audit report under DTC is not the only job for either professional. There are other duties under Companies Act and other statutes which expands the role of the professionals.

    Surya Krishna
    Advocate and Tax Pratitioner,
    rsuryakrishna@yahoo.in
    +91-9488714372

  99. B.S.K.RAO says:

    MANDEEP SINGH SIR,

    Your response to ondipuli comments in this blog confirms to the provisions of law prevailing in India. Thnak you, Mandeep Singh ji. In DTC-2013 almost all persons are covered for tax audit, only Tax Advocates left out. I think from now onwards We have to move aggressively in the matter of pleading & acting before the assessing officers of Income-Tax Deptt.

  100. PCJ says:

    This should have been done long before.There are three specialised audits. Financial Audit which is conducted exclusively by Chartered Accountants. There is no issue. Similatly Cost Audit by Cost Accontants and Secretarial Audit by Company Secretaries respectively.

    Rest all audiits like Tax Audit,Audits under VAT Bank audits etc. should be opened for all professionls namely CAs,CS and CWAS. Unfortunately, CAs always have a feeling that all audits are their rights and no body else should be authorised to conduct the audits. When they have a right to certify E forms under Companies Act, Corporate Governance audit under Listing Agreements and number of other CS & CWAs oriented audits that is fine with them. But if CS and CWas are authorised for Tax Audit and VAT audit then they make this senseless arguemnets that tax audit requires deep knowledge of accounting,CA is the toughest course because of lower pass% and all.Please note that tax audit is not a rocket science. If a Chartered Accountant can do practice in Corporate law and pure financial consultancy then why cann’t the other professional do tax audit. In all three courses, there is fair amount of accounting and tax papers have been included. There should be multiple options before the industry why only CAs should monopolise. The clients should have the right to choose the right auditor that may be CA,Cs or CWA.

  101. SRK says:

    It is a very good move and it removes the monolopoly of CA. The CMA’s are very capable and have very good knowledge in Taxation ratherthan CA. They are highly interest in public interest but they {CA) are not like this they are manupulating the government by making false calcultions.

  102. MANDEEP SINGH says:

    Dear ondipuli ji,
    Practice of accountancy & practice of law are two different things. Right to “practice of law” confined to only Advocates as a law professional class. If there will be any confusion regarding accounting entries in assessment then accounting professional may called u/s 131 of Income tax act 1961 as like in courts witness are called. If this procedure adopted by ministry of finance by deleting section 288(2) of income tax then it will be beneficial for revenue.
    Defiantly it will increase quality of work related to “Practice of Law” & Practice of accountancy if accounting professional are called u/s 131 of income tax act 1961.

  103. ondipuli says:

    Mr.BSK Rao,
    Please note that writing this same matter in tens of thousands of forums won’t help. CWAs CAs and CSs will always have the right to represent assesses before IT authorities.

    Why, We are going to take up the challenge and ensure that we get the right to represent the assessee even in Courts. Remember that Direct Tax Laws in India require deep accounting knowledge which only professionals from the Institutes possess to the fullest degree.

    If you keep quoting Advocates Act, we can keep quoting CA Act,1949 CWA Act,1959 or CS Act.

    Thanks,
    Ondipuli
    CMA

  104. B.S.K.RAO says:

    Gopakumar Sir,

    There is nothing wrong in granting the power of tax audit to all the persons authorised to practice Income-Tax Law U/s 288(2) read with Rule 12A of Income-Tax Rules. Audit of Ltd Companies still enjoyed by CA’s only. In fact, Audit of Ltd Companies should also be given to CMA’s, in view of latest amendemnts made is Cost Accountants of India Act authorising CMA’s to work in the area of Cost as well of Management Accounts. Because, Management Accounts means application of Cash Flow Statement & Ratio Analysis on Cost & Financial Accounts.

  105. B.S.K.RAO says:

    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) it was clearly held by Hon’ble Supreme Court & Madras High Court that Advocates alone are entitled to practice the Profession of Law both in litigious & non-litigious matters. This also confirms to Section 29 of Advocates Act. The verdict of Supreme Court is the declared law of land, binding on all throughout the territory of India under Article 141 of Indian Constitution & contravention liable for action under Article 129 read with Article 142(2) of Indian Constitution. Income-Tax Act being “LAW” Advocates alone are entitled to plead & act before the assessing officers of Income-Tax Deptt. & other than Advocates should appear before the assessing officers under CPC/Evidence Act against summons issued U/s 131 of Income-Tax Act. On date, Section 288(2) of Income-Tax Act has been subjected to review of Apex Court verdict. Therefore, other than Advocates representing the assessee to plead & act U/s 288(2) is totally illegal, null & void

  106. Prasad says:

    Welcoming this move and appreciated.

  107. Gopakumar says:

    fair only if govt ready to eliminate the monopoly of Secretarial Audit and Cost Audit presently enjoyed by CS & CMAs.

  108. MANDEEP SINGH says:

    My dear friends CA’s always up roaring study of CA’s curriculum is toughest one. It is wrong conception. Only minimize pass percentage not amounting toughness of curriculum. If any person honestly devote 3 to 4 years on CA study he can become master of the accountancy. But actually study of law toughest one, Nobody can say he is master of law in his hole life.

    At last it is request to my CA’s friends not uproar curriculum is toughest one. In punjab government is taking TET & study material of this test upto metric level but PHD STUDENTS ARE UNABLE TO CLEAR THIS DUE TO LOW PASS PERCENT. HERE WE CAN’T SAY TET IS TOUGHEST ONE IT WILL BE WRONG CONCEPTION. PLEASE RESPECT LAW PROFESSION WHICH IS A NOBLE PROFESSION & OTHER PROFESSIONS.

  109. Rakesh Kataria says:

    Monopoly of one institute is always dangerous for country, so move to allow CMA’s and CS’s for tax audit is good for country. also Financial audits should be open to CMA’s and Cost Audits should be open for CA’s.

    India is big country so need as many institutes to serve the nation. first empower CMA and CS.

  110. B S K RAO says:

    To BSK Rao

    Nameless person,

    I am working keeping in mind the word “We”. It is evident from the fact the I am making claim to grant tax audit power to all the persons covered U/s 288(2) of Income-Tax Act, who are allowed to prepare return on behalf of assessees under Rule 12A of Income-Tax Rules. The above proposal meet the requirement to widen genuine tax base of assessees in due course to meet the cost of Food Security Bill Sir.

  111. MANDEEP says:

    Hello Mr. Ravi,
    How can CA’s more competent in practice of taxation laws than Advocates. Mere reading of Income tax law not makes anyone perfect for practice of income tax laws. Practice of Income tax law based on several other acts regarding about CA’s have zero knowledge.
    Practice of income tax law based on following other acts which are played important role to decide the matters under income tax law.
    1) Local land laws & Judgments to decide agriculture matters.
    2) If your are Punjab resident, you should need to be knowledge about JAMABANDI, FIED BOOK, GADAWARIES & KNOWELDGE OF LOCAL STAMP ACT TO TACKLE AGRICULTURE MATTERS.
    3. EVIDENCE ACT:- YOU SHOULD BE KNOWLEDGE OF EVIDENCE ACT FOR GUIDE ASSESSEE WHICH EVIDENCE COULD BE FAVORABLE & WHICH EVIDENCE CAN CREATE PROBLEM.
    4. IPC: YOU SHOULD BE KNOWLEDGE OF IPC ACT READ SECTION 193 TO 200 DEALS WITH EVIDENCE. DECISION UNDER ANY LAW BASED ON EVIDENCE ACT.
    5. YOU NEED TO STUDY OF INTERPRETATION LAWS FOR PLEAD UNDER ANY ACT.
    6. CPC
    7. CRPC
    8. RENT CONTROL ACT & JUDGEMENT OF HONB’LE COURTS UNDER THE ACT.
    9. YOU NEED TO STUDY DRAFTING & PLEADING ACT.

    THERE ARE OTHER OF NUMBER OF ACTS & JUDGMENTS UNDER THESE PLAYS IMPORTANT ROLE TO DECIDE INCOME TAX MATTERS.

    AT LAST IT VERY CLEAR PRACTICE OF EVERY ACT IN INDIA BASED ON OTHER ACTS & JUDGMENTS UNDER THESE ACTS. SO FOR “PRACTICE OF LAW” IS ONLY FOR ADVOCATES.

  112. ibrahim says:

    Hearty welcome and logic proposal. Let India follow international standards where professionals in the same fields are allowed to work together and develop superior quality of profession. i think it is only in India, only CAs (one of the professional bodies) allowed to work in the field of accounting and taxation, which CAs made it monopoly and used to protect only their interests and manipulations without considering national interest, ordinary people and their requirements. It is simply evident from their minimum fee shedule. if a person is unable to pay the minimum fee, he can not avail services of accounting and taxation from a CA. What a tragedy, just like some doctors charge minimum fee for saving a life. Let the proposal come true and ordinary people get professional services at low cost.

  113. To BSK Rao says:

    Dear Mr.BSK Rao You seem to be very jealous of CAs and other professionals. I can sense this GREAT JEALOUSY in every post of yours, not only here but in your posts in numerous other forums. If you are very keen on advocates getting the right to sign tax audit reports, then CAs /CWAs and CSs will press for appearing on behalf of clients in Courts. Why should the right to appear in court be reserved to lawyers only? We will press for amending the Advocates Act to include CAs and other professionals to appear in courts for cases .

    Kindly remember that the above three exams are among the toughest to clear , unlike getting a law degree.

  114. B.S.K.RAO says:

    THE PROPOSED ACTION OF THE GOVT. IN THE ABOVE ARTICLE WILL DEFINETLY HELP TO MEET THE COST OF FOOD SECURITY BILL INTRODUCED BY OUR ESTEEMED CONGRESS GOVERNMENT BY WIDENING GENUINE TAX BASE OF ASSESSEES IN INDIA

  115. Rajesh Vashishtha says:

    I would like to congratulate all the Companies Secretaries and cost accountant on this historical move proposed by the Government. Now the CS or CMA who had studied hard to come in this professional will be recognized by the society. Most of the people do not know what is Company secretary. They think that they are just personal secretary. Most of the CSs have to explain to the general public that CS is also a professionals like CA. Some CS have to introduce themselves as CA to their relatives or others in order to avoid explanation or referring section 383 A of the companies Act. It happened with me a lot of times. I am in Canada but nobody, even indian, do not know what is CS.
    Also this proposal will give more source of income to CS or CMA as I have seen some professional to issue secretarial audit report for just Rs. 500 to 1000 despite giving the best services. Some CS professionals, who never got chance to work in listed companies are forced to do clericals jobs.
    I have seen a lots of comments, saying CS or CMS people know little about Taxation which is wrong. When I was students of CS, I think, I studied about 20 legal acts including Direct Tax and Indirect tax. I think a CS has mastery in legal area and they can enter in any field anything with their vast knowledge.

    So I am very happy for all CS and CMS professionals and hope they will keep it up and will make people aware about their importance in corporate world by providing their the best professional services.

  116. RAVI says:

    It is a welcome move, No doubt. But why it should be stopped with this, we may extend further. It is equally important to make an amendment in the respective laws to do the cost audit and secretarial practice by CA’s also. The CA’s are more wellversed in Income Tax laws and the matters involved in the Income Tax cases than Lawers, because they are watching the day to day position of the assessee. Why the CA’s should not be allowed to appear before the court for Income Tax Matters. Also, we can recommend to change the syllabus of all the CWA cours, CS Course & Law course to include all the laws so that all the person can practice in all the laws and avoid the confussion of superior, inferior or practising areas.

  117. MARKANDA SAMANTA says:

    IT IS VERY GOOD MOVE.

  118. S JEGADEESAN says:

    This is should be abolished just like congress Government.Highly Dangerous .

  119. S JEGADEESAN says:

    Then what is the use of CA? If CMA & CS are allowed to audit then the companies actual status will be come down.CMA is doing only one good job .i,e, getting the fee abnormally from the students . They never create any meaningful materials.If we allow them,Taxation, Auditing will be a good entertainment.All the people will sign the report just like notary public.Then what will happen?……………

  120. B.S.K.RAO says:

    K.MUKAMBIKA MADAM,

    Conversely you should say like this,

    ICAI Should not approach Deptt. for securing certification work for their members by way of bribing the bureacrats, rather people should recognise the quality of work done by ICAI members.

  121. Ch. Mallikarjun Dev says:

    I congratulate the Cost accountants and company secretaries for their successing in persuading the CBDT for for recognising them for Tax audit. At the same time it is also necessary to extend the definition so as to include the Tax advocates who are primarily entitled to practice any Law incuding the Income tax Act. That positive action will stimulate many other than CA professional to join Tax profession and to work for Tax Base widening and enhancing tax collection meaningfully. Now it is the time for BCI to peruse the matter on utmost importance for wide coverage of legal fraternity.

  122. CA shilpa jain says:

    form which A.Y. it is applicable.

  123. Krishna Lokapur says:

    It is w e f A Y ?

  124. K.S.Shanmugam says:

    As on today CMA and CS Professionals syllabus not covered the entire taxation and Accounting Areas and the quality of course is not high compare with CA Courses. This point to be considered.

  125. SRIKRISHNA says:

    I APPRECIATE THE EFFORTS OF J.R.SHARMA, SECRETARY, BAR COUNCIL OF INDIA IN THE ABOVE MATTER. TAX ADVOCATES WITH COMMERCE BACK GROUND SHOULD BE INCLUDED FOR THE PURPOSE OF TAX AUDIT IN DCT 2013 U/S 320

  126. MANDEEP SINGH says:

    Whenever Non advocates are practicing of Taxation laws by appearing before tax authorities. Whenever it is filed of only Advocates. Who are only recognized class for ” Practice of Law” under advocates Act 1961.
    Then why not Advocate should be authorized to sign off tax audit reports. Which reports are biased on interpretation of laws. To fill form 3CD is covered under Practice of Law & it is not practice of accountancy. I congratulate to CMA’s & CS’s for inclusion u/s 320 to tax audit.

  127. K.MUKAMBIKA says:

    THIS IS THE RESULT OF TOO MUCH PROTECTION OF MEMBERS BY ICAI & BASED ON THE PRINCIPLE OF ACTION & REACTION ARE EQUAL & OPPOSITE. STUDENTS SHOULD APPROACH GURU FOR PREACHINGS & GURU SHOULD NOT APPROACH STUDENTS, THE PRINCIPLE FOLLOWED BY INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA SINCE 1984.

  128. Ramesh Gandhi says:

    Welcome move. appreciated

  129. B S K RAO says:

    The Bar Council of India (BCI) in New Delhi, the statutory body governing the legal education and profession in the country, has urged the Centre to permit legal professionals alone to practise in matters relating to Income-Tax law involving amount below Rs 60 lakh.

    The BCI has sent a communication dated September 11 urging the Central Board of Direct Taxes (CBDT) in New Delhi and the Income-Tax Appellate Tribunal (ITAT) in Bangalore to delete certain words from sec 33 of the Advocates Act, which went against the lawyers community and allowed the auditors and chartered accountants (CAs) to practise in IT law. The appeal followed a report from S Prabakaran and Rameshchandra G Shah, members of the BCI, who have been assigned the task of examining the Advocates Act and Income-Tax Act.

    The BCI, at its meeting held on July 28 last, considered the report of Prabakaran and Shah and accepted it. In turn, it urged the CBDT and the ITAT to delete persons other than legal practitioners from practising in IT matters involving below `60 lakh under Sec 288 (2) of the Income Tax Act.

    Originally, under sec 44AB of IT Act, persons carrying on business having turn over exceeding Rs 60 lakh per year have to submit Tax Audit Report in Form 3CD duly signed only by CAs. The Act was redefined, and sec 44AD added to it in April, 2011, which included all business class assessees having a turn over `60 lakh and below within the ambit of tax audit. In view of the redefined clause, assessees approaching the CAs can declare less income and pay less tax. If they approach a legal professional, they have to declare fixed percentage of income and pay more tax, because of no authority to attach such Tax Audit Report. Then, nobody will approach the legal professionals and they will be indirectly threatened to extinction from income tax practice. This will amount to virtual withdrawal of the right conferred on legal professionals under Sec 288(2)(iii) of IT Act.

  130. B S K RAO says:

    I ALSO APPRECIATE THE EFFORTS PUT BY SRI.S.PRABAKARAN, ADVOCATE, CHENNAI AND RAMACHANDRA G.SHAH, ADVOCATE, SURAT, WHO ARE THE MEMBERS OF OUR APEX BODY BAR COUNCIL OF INDIA, NEW DELHI

  131. B S K RAO says:

    I ALSO APPRECIATE THE EFFORT PUT BY SRI.ANANTH SUBRAMANIAN PCS, SRI NAZEER PCS & SRI RAKESH SINGH ICMA IN THE ABOVE MATTER. IN THE SAME WAY IF DEPTT. TAKE BCI, ICSI & IC&MAI IN TO CONFIDENCE IN ALL DECISION MAKING PROCESS OF INDIAN TAXATION LAWS, THIS WILL HELP THE GOVT. TO INCREASE GENUINE TAX BASE IN INDIA.

  132. Ramoji says:

    It is really a good move by the Government of India. It heps industry and common people to chose tax professionals among CMA/CA/CS qualified people at lessor cost and quality of the service.

    Congratulations to Cost and Management accountants and Company Secretaries.

  133. MANDEEP says:

    It is good move by ministry of finance & CBDT. Monopoly is not good on revenue side as well for assessee. filling form 3CD under income tax is 70% interpretation of laws. So for Advocates more than five years experience in taxation filed should be authorized for tax audit.

  134. CMA. Rajendra Thakur says:

    I would like to congratulate “THE INSTITUTE OF COST ACCOUNTANTS OF INDIA and “THE INSTITUTE OF COMPANY SECRETARIES OF INDIA” for getting new area for practice as per the INCOME TAX CODE 2013. CA, CMA & CS professionals are equally competent to perform this task.

  135. K.MUKAMBIKA says:

    The action of the Congress Govt. in the above article is highly appreciated. At least from now Non-CA Tax Professionals will take-up tax profession in big way which will help the Govt. to bring more persons in the tax net. Presently 2% of pupulation are under the tax net. In due course more persons will come under the tax net. Here attitute of the deptt. also plays very important role. Hence, Govt. should give more stress on that for the reason the there is still some fear about the deptt. officials to the assessees. Ie, citizen charter should come in practice.

  136. Rajesh Thakkar Advocate says:

    As per section 320(2)(iii) any other class may allowed by the CBDT. We hope that Tax Advocate may introduce in this qualified person.

  137. Kaushik says:

    This is a very welcome, justified and logical move by department. India is short of qulified accountants and restricting the service within CA does not help general public..good move

  138. Pramod Mishra says:

    It is a welcome move by the government.

  139. B S K RAO says:

    I WOULD LIKE TO CONGRATULATE INSTITUTE OF COST & MANAGEMENT ACCOUNTANTS OF INDIA AND INSTITUTE OF COMPANY SECRETARIES OF INDIA AND ALL THE PERSONS WHO WORKED FOR THE ABOVE ISSUE IN THE COMMON INTEREST OF OUR NATIONAL REVENUE

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