The Finance Minister, in his speech on Interim Budget 2014-15, made the following observation on Direct Taxes Code (DTC):-
“Revenues are of paramount importance. The best source of revenue is taxes and for that we need modern tax laws. I am disappointed that we have not yet been able to introduce GST. I leave it to you to answer the question, who blocked the GST when an agreement on the game-changing tax reform was around the corner? We have also got ready a Direct Taxes Code that will serve us for at least the next twenty years. I intend to place it on the website for a public discussion without partisanship or acrimony. I appeal to all political parties to resolve to pass the GST laws and the DTC in 2014-15.”
Accordingly, the DTC, 2013 along with DTC Bill, 2010 is placed on http://incometaxindia.gov.in. A write-up on the significant changes in the proposed DTC, 2013 is also placed on the website. The report of the Standing Committee on Finance is available at the http://loksabha.nic.in. Comments, if any, on proposed DTC, 2013 may be sent on email ID: dtc13-dor@nic.in.
I will support to dtc 2013 because monopoly is dangerous and it already coused damage to the country
YES . I AM ALSO IN THE FAVOUR OF THIS NOTIFICATION.AFTER THAT CS AND CWA WILL ALSO GOT THE POWER TO SIGN THE TAX AUDIT REPORT.
Congratulations to all my CS AND CMA FRIENDS WELL ABOUT EXPERT IT IS ABOUT LEARNING MY FRIEND NOT REGARDING ANY SPECIFIC PROFESSION.CA WAS GIVE AUTORITY IN TAX BECAUSE THERE WAS NOT ENOUGH EXPECT PEOPLE,NOW SENARIO HAVE CHANGE.WHY? PEOPLE HAVE THIS MENATLITY IF SOMETHING IS GIVEN TO THEM THEY THINK IT ONLY BELONGS TO THEM.
I may also refer to the Bombay High Court judgement in the case [The Sales Tax Practitioners’ vs The State Of Maharashtra [2008 14 STT 348, (2008) 14 VST 69 Bom] where it is clarified that simply because of having the knowledge on a certain subject, someone can not be allowed to act as an ‘accountant’ and by so not being qualified as an ‘auditor’. Only the chartered accountants and the cost accountants, by the reason of their training have special aptitude in the matter of audit. The Supreme Court also upheld the decision of the Bombay High Court on May 13, 2008 while dismissing the petitions filed by the Sales Tax Practitioners Association of Maharashtra and the Bar Council of Maharashtra against the Bombay High Court ruling.
Dear All,
Inclusion of Cost Accountants and Company Secretaries in the definition of ‘Accountants’ in the DTC 2013 is a welcome step. Certainly it would encourage the budding professionals in these two professions along with Chartered Accountancy profession, to come forward and pursue these courses.
Cost & Management Accountants and Company Secretaries in India are certainly competent enough to conduct tax audit and create value addition for both the clients and the government. All the three professional bodies should grow together. They compliment each other instead of contradicting or competing each other. There is bright future for all professionals and lot of areas in which expert services of these accounting & secretarial professionals should be made use of by the government in the larger interest of the country.
Regards.
Sreepada H.R., M.Com, ACMA,
(M)9481425935
As Tax Audit matter ICAI (CA) demands that only chartered Accountants are very much expertise in Taxation, Accounts & Law matters compare to other professionals. But Sir, those days are gone, CMA’s is very capable and have good knowledge in Taxation, Accounts & Law matters rather than CA’s.
I don’t understand why Finance Ministry & CBDT always take decisions in favour of CA’s.
In grass root level as a general public or a citizen of India i saw that almost every CA’s think that they are equivalent to God.
This thinking is very dangerous for a nation because monopoly of one institute is always dangerous for the country. Satyam Scam is the example.
If CMA’s are not included in the definition of Accountant under DTC of the Income Tax Act in near future a number of Satyam Scam will appear.
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 1949, STATED TO BE THE ONLY ACT PASSED BY PARLIAMENT DOES NOT HAVE ANY SOCIAL RESPONSIBILITY, INSTEAD IT IS TROUBLING ASSESSES, GOVERNMENT AND PUBLIC AT LARGE.
I think Chartered are not expert in costing and management accounting. Therefore in manufacturing industry inventory is not valued properly by them. That is why income tax is not properly calculated. Therefore inclusion of CMA as accountant in DTC is goods news for all.
Don’t Ask ” How ” ?
At the bottom of the 42 page Election Manifesto of BJP , released yesterday , I tried to search , if in very small print somewhere , there was a footnote which read ,
” Please , don’t ask how we plan to implement these promises ;
From where we plan to find all the money to execute these projects ”
Here are my back-of-the-envelope estimates of what some of the MAJOR projects might cost :
————————————————————————————
PROJECT ……………………………… Approx Cost ( Rs Lakh * Crores )
————————————————————————————-
> 100 Mega Cities…………………… 90
> Interlinking of Rivers……………… 60
> Sagar Mala of Ports……………….. 30
> Highways ( 25,000 Km )………….. 50
> Housing ( 100 mill units )………… 100
> Rivers Cleaning…………………….. 10
> Other Infra Projects……………….. 100
* Freight Corridors
* Gas Grids
* OFC Network
* Quadrilateral Bullet Trains
————————————————————————————
Total ……………………………………Rs 430 Lakh Crores
————————————————————————————
Admittedly , not all of these money will be required in the very first budget that NaMo government ( – of course , only if voted to power ! ) , would present by end June 2014
But a problem does not go away by postponement !
There is only ONE viable solution to the FUNDING problem , viz:,
> Union Government must NOT even try to fund these projects !
There is NO WAY , it can find these kind of money thro taxation !
There will be a revolt !
ANSWER
> Make it possible for the PUBLIC to invest into these projects by ” owning ”
these projects – and earn a reasonable ” tax-free ” return on investments
( Bonds ? ) in these projects
> Towards this end , create various INFRASTRUCTURE SPVs
> Immediately modify PERSONAL INCOME TAX regime as follows :
> Up to Rs 5 lakhs………………… NIL
> 5.1 – 10 lakhs………………….. 8 %
> 10.1 – 20 lakhs…………………. 6 %
> 20.1 – 50 lakhs………………… 5 %
> 50.1 – 100 lakhs………………… 3 %
> Above 100 lakhs…………………. 1 %
What is likely to happen with such ” INVERSE TAXATION ” regime ?
Following few things :
> Total personal tax payer base will go up dramatically from current 4
crores tax-payers
> with this ” INVERSE TAX REGIME ” , there will be no incentive to evade
taxes and to generate ” BLACK MONEY ”
There will be no resistance to accept ALL payments by cheque / electronic
clearance
The more you disclose as your income , the less you pay by way of taxes
( Of course , incrementally )
> For a change , we will learn to reward honesty / efficiency / productivity !
No need to bribe those Income Tax officers !
> Suddenly , lakhs of crores of BLACK MONEY will become WHITE MONEY
> There will be a huge surge in bank deposits ( – even with , the inevitable
lower interest rates )
> Banks will be awash with funds to finance businesses / infrastructure
projects etc , encouraging entrepreneurs / self-employed to set up new
businesses ( at 2 % interest rates of loans ) and generate millions of jobs
In any case , BJP manifesto promises :
> Rationalization and simplification of the tax regime – which is currently
repulsive for honest tax payers
> The process of bringing black money to India , what belongs to India , will
be put in motion on priority
> Minimize scope for Corruption
Narendrabhai ,
Here is your chance to ditch the ” Historical Baggage ” into the Indian Ocean
and come up with an INNOVATION that will take India ahead of China !
If President Kubitschek of Brazil ( 1956-61 ) – son of a poor salesman – could construct Capital city BRASILIA and a 1500 Km highway , in 41 months , surely , you can do better , 57 years later !
* hemen parekh ( 08 April 2014 / Mumbai )
Dear all
It is a lack of our system that no one take responsibility. for ex. a customer apply for loan from bank, bank it self a loan department yet they needs financial statement to a small customer also, it is just a harassment while he submits his detail and same verified by the bank officers…..
It is Ridiculous that e filling website of income tax department indicates only CA’s are treated as Tax professional.Other Tax professional are zero.But at present scenario Cost Accountants are expertise in the area of Cost Accounts, Financial Accounts & Management Accounts where as CA ‘s are restricted to work in the field of Financial Accounts only.This being in case I do not understand why only Chartered Accountants are authorize to conduct tax Audit U/s. 44 AB of Income Tax Act and enjoy monopoly of authority.
EXCISE AUDIT U/S.14AA AUDITED BY ONLY COST ACCOUNTANTS BUT FINANCE BILL 2009 HAS AMENDED THESE PROVISIONS TO INCLUDE CHARTERED ACCOUNTANTS ALSO TO DO THIS AUDIT JOB.SO WHY COST ACCOUNTANTS ARE NOT INCLUDE IN THE DEFINITION OF ACCOUNTANT UNDER PROPOSED DTC OF THE INCOME TAX ACT ?
CMA’S are already conducting Vat Audit, Internal audit and Special Audit under section 14A & 14AA of the central excise Act 1944.So why a Cost Accountant cannot sign on Tax Audit Report ?
IT IS VERY GOOD MOVE AND IT REMOVES THE MONOPOLY OF CA’S. MONOPOLY OF ONE INSTITUTE IS ALWAYS DANGEROUS FOR COUNTRY. SO PLEASE MOVE TO ALLOW CAM’S AND CS’S ON SIGNING THE TAX AUDIT REPORT.
In practice a CA is instead of doing his statuary obligation, helping his clients and telling him ways and means how to cheat the govt.by manipulating accounts and income.Satyam Scam is the example.CMA’s & CS’s are also the expertise of financial statements, Income Tax & Law matters.So Why a CMA & CS cannot prepare & sign a Tax Audit Report under Income tax act ?
SRK JI,
Received your thanks on conveying best wishes to all the PCMA & PCS of India,
I am in touch with your past president Sri Rakesh Singh Ji, PCMA about the isssue. I am residing Shimoga Dist. of Karnatka State. I regret to inform you that in our place there no single practicing CMA Sir.
Thsnk you BSK RAO, for giving support to CMA’s
I don’t think this proposed provision is a constructive one,because Cost Accountants & Company secretaries has neither enough theoretical knowledge nor practical knowledge in Tax Audit.It will deteriorate the quality only & add no value.
THANK GOD, PCS & CMAS GOT THE POWER TO SIGN OFF TAX AUDIT REPORT
IN INCOME-TAX ACT – DTC 2013