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 (CA) but also by Company Secretaries (CS) and Cost Accountants (CMA). 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
Author Bio
TO FIGHT & CONQUER IN ALL BATTLES IS NOT SUPREME EXCELLENCE BUT IN BREAKING THE ENEMY’S RESISTANCE WITHOUT FIGHTING…..IS THE SUPREME EXCELLENCE
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
it is very welcome move from the goverment, monopoly alwyes destroy Revenu, very very congretulation to cs & ICWA Student.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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…….
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.
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.
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
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
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
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
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
Thanks U.S.Tiwari Ji,
Kindly give test mail to raoshimoga@gmail.com to enable me to keep in touch with you Sir
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.
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.
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.
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.
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.
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.
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.
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
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
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”.
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
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.
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.
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.
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.
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.
Syllabus of CS and CWA is as wast as CA so i dont think there is anything wrong in this move.
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA PASSED BY AN ACT OF PARLIAMENT
USED BY ITS MEMBERS TO SATISFY THEIR PERSONAL AGENDA
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
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.
ICAI PUBLICATIONS IN THEIR JOURNALS & NEWS PAPERS AND ITS PROFESSIONAL ETHICS IS THE MAIN IMPACT FOR THE ABOVE CHANGES REFLECTED IN DTC-2013
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.
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.
Dear friends,
we Advocates should do what we are supposed to do ; only practice the profession of law.
Dear friends,
Advocates should do what they are supposed to do; practice profession of law only.
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.
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.
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.