ICAI expresses its concern on the proposed definition of “Accountant” in DTC, 2013 – (17-04-2014)
As the members are aware, the Direct Taxes Code, 2013 has proposed to widen the scope of the definition “Accountant” to include other professionals as well. It is a fact that various provisions in the Income-tax Act, 1961 under which chartered accountants have been given the responsibilities to undertake audit and certification of accounts of various entities have the emphasis on “audit” of the relevant accounts which is the exclusive domain of Chartered Accountants.
The Council of ICAI is aware that the proposed change is a cause of major concern to the entire profession. In this regard, ICAI has through a representation to Ministry of Finance, placed on record its concern not only for the profession, but for the country as a whole since issuance of audit certificates by persons having limited knowledge of audit of accounts will not only be professionally incorrect and but will raise many concerns including causing huge revenue leakages.
A meeting in this regard was held with Mr. Rajiv Takru, Revenue Secretary and Mr. R.K.Tewari, Chairman, CBDT on 16.4.2014, wherein CA. K. Raghu, President, ICAI and CA. Manoj Fadnis, Vice President, ICAI emphasized on the fact that there is a very significant difference in the area of expertise of other professionals vis-a-vis Chartered Accountants.
Members be assured that the Council of ICAI is equally concerned and will not leave any stone unturned to save the profession and the nation.
Secretary, Direct Taxes Committee
Also Read –
Mandeep Sing Ji & K.Mukambika Madam,
I appreciate the ground work of you people in bringing transparency in the system. I think because of RTI prevailing in India, Bureaucrats in the Govt. Deptt. will not do wrongful act by the influence of vested interest & big business groups. (Ex: Wrong amendment carried out to 2nd Proviso of Section 44AB of Income-Tax Act in Finance Act 2001 resulted in CAs signing tax audit report without actually conducting audit). Since, 2001 CAs are signing tax audit report as such in case of Co-Operative Societies in Karnataka, but now CAs succeeded in bringing amendment in Co-Operative law of Karnataka in their favour. Now, Co-Operative Deptt. Auditors in Karnataka are left with no job to do, but they are happy that they are getting regular salary. In fact, Co-Operative Societies accounts are different, maintained in local language which CAs can not understand to conduct audit, but they just signing the statements prepared by the accountants of such society, without actually conducting audit. This fact will come light in future, when dispute arises between the members of such Co-Operative Societies lands-up in litigation before Registrar of Co-Operative Societies. In Bank Branches they tally accounts on daily basis & there is no trouble to CAs here.
Mohit Agarwal Ji
As the per the data given by Director of Income-Tax (Systems) against RTI Application, only 65,570 PCAs have conducted Tax Audit for the Asst. Year 2013-14. Whereas ICAI (Financials) has given around 1 PCAs to RTI Applicants, but giving public statement as 2.25 lakhs PCAs are in India & MCA has also given the same figure of 2.25 lakhs PCAs to question hour raised in Parliament. Now following question arisen to CBDT/DIT(S):-
1. What the remaining 34,430 PCAs are doing ?
2. Why they have not signed single Tax Audit Report ?
I think Ministry of Finance is verifying appropriate Code in IPC to take action against so called Institute of Chartered Accountants of India passed by an act of parliament, because in some of the 1st Appeal order under RTI they are giving statement that “matter is under Investigation”
About professional ethics:-
As per ICAI Professional ethics, when the clients feel change of CA required, new CA should take permission from earlier CA. In the course of seeking such change, earlier CA who is in possession of secret information of assesee take undue advantage, black mail the assessee. In this way monopoly of tax audit to one particular group of Tax Professionals troubling the assessees.
All the above matter has come to knowledge of Ministry of Finance.
My all friends
Here we should a common view to widen tax base for our country development & for this task two alternatives are available to ministry of finance & CBDT.
1) Delete all audit certificates which are strict hurdle for voluntarily
compliance from assessees as well as from Non- CA tax professionals.
2) Authorize all practitioners mentioned u/s 288(2) for audit. If we serious to
increase revenue of country.
IF WE ARE SERIOUS ONLY ABOUT INCREASE REVENUE OF ICAI & NOT OUR COUNTRY THEN AUDIT WORK SHOULD BE RESTRICTED ONLY UPTO CA’s for dark future of TAX SYSTEM in india.
Nimesh Maheshwari ji
I am agree with you professional bodies will not be agree with me & reasons for that selfishness of professionals bodies is a strict hurdle to take favor of assessees.
mostly my CA friends always sing a song toughness of CA examination, quality of work in audit ect. I have already explained quality of work done by CA’s in audit u/s 44ab in my previous comment through information obtained in RTI. Secondly they are up roaring toughness of CA curriculum. Please give CA curriculum to all universities in india & then you will see different results.
Just minimize pass percentage to give work to all members not be considered as toughness of curriculum. Near about same subjects in B.COM & CA.
DEAR ALL CA FRIENDS,
Please argue academically on making deep study of present Income-Tax Act, 1961 read with rule 12A & Section 145 of Income-Tax Act, instead of saying that Non-CAs posting comments here with jelous, so that DTC-2013 will come out with good shape in the interest of all.
Hi All Non CA,
We can understand how painful is it if a person wishes to pursue a career but because of inefficiency he cannot complete the same.
In this scenario only option available to them is to find useless fact and keep on speaking on it. They are simply jealous of CAs and have to show their frustration.
Neilufer Cushettji has rightly said that if all professionals to be treated at par for all areas of professional work with uniform diciplinary actions, we the professionals will ourselves face various desirable or undedirsble circumstances and then this will lead to anarchy.
I appologize for mistakenly addressing K Mukambika Sir instead of Mandeep Singh Ji in my last comment.
Dear K Mukambika Sir,
So Sorry but can you correct me if I am wrong. Is it that YOU have reached a CONCLUSION that report u/s 44AB for non corporate assessee is just an EXTRA FINANCIAL BURDEN?
I wonder how many of the professionals, governing bodies of professions, regulators would support your view.
“CHARTERED ARROGANCE” is wrong word/phrase used for Chartered- Accountants. One should remember that along with a very difficult exam we also go through rigorous article ship training.
And inclusion of other professional means deterioration in quality of “Tax Audit” and slowly it loose its relevance.
It should also not be seen as monopoly of one professional body, there are more than 1.25 lacs members of the Institute, if auditee is dissatisfied with member may go to any other member for the audit. Therefore literally speaking there is no monopoly.
Along with this over the period of time we have gained the expertise in the subject due to our practical and theoretical experience.
If this allowed then another debate will start to allow the Chartered Accountants to do Cost Audit and Secretarial audit
To Nimesh Maheshwari Says:
Now you see the language here used by CAs in this post. Hence we aptly called you guys as CHARTERED ARROGANCE. As far as the so called toughness and rigorous CA exam is concerned Can you guys urge your council to relax the 3 year article ship to other professionals so as they can seat CA exam and prove their credentials.Do you really believe this article ship make you expert.Just introspect.A little application of mind by anyone from accounts and finance background can understand and interpret the AS and principles issued by ICAI. Please do not live in illusion.Demeaning other professionals is what learned in this article ship. Just relax this entry barrier and see how many CS and CMAs enroll and qualify CA exam. At least those are in service who can not afford to quit their full time job and devote 3 yrs for article ship.
ONE MORE THING I WANT TO CONVEY TO ALL MY FRIENDS,
In order to provide full employment to existing members, Institute of Chartered Accountants of India is always trying to expand demand supply gap of Chartered Accountants. Ex: ICAI wants to see that each members get 2 to 3 bank branch audit, so that each CA will get fees above Rs 1 Lakh from bank audit every year just by putting tick mark to Trial Balance & Balance Sheet prepared by the bank branches. NPA accounts are already reported by internal auditors of bank to head office & legal advisers of the bank take care of documents relates to advances which CAs can not understand. Factually, in view of core banking, all accounts are central maintained in head office & audit of bank branches is also an eye wash & cost burden to banks.
ARUNDHATI MUKHERJEE MADAM,
You have correctly stated that because of indirectly confining Income-Tax Practice to CAs by way of mandatory certificates, ICAI is not only regulating their members, but also regulating voluntary compliance under Income-Tax Act. By this act & ethics of ICAI, revenue leakage is taking place by discouraging voluntary compliance. That is why in India only 2% of population are under the tax net, whereas in western countrys 80% of population are under the tax net. Govt. should understand that “more persons are in the line of tax practice more revenue”. Hence, Govt. should encourage persons to start tax practice by way of providing full authority to persons authorised to prepare return. Ie, “decree of the court which can not be executed” the position of Non-CA Tax Professionals prevailing on date in Income-Tax Act should not happen in future.
DEAR ALL FRIENDS,
Due to T.D.Venkat Rao (SC)case only Chartered Accountant will conduct Tax Audit in Income-Tax Act. In view latest verdict in the case of Bar Council of India Vs A.K.Balaji (SC) Section 288(2) of Income-Tax Act require deletion. In the result only CAs will conduct Tax Audit & only Advocate will plead & act before the Income-Tax Authorities. Can any one imagine the ill effect of this situation to Govt. revenue & troubling assessees to approach more than one Tax Professional to give compliance in Income-Tax Act.
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)
Above situation will cause further strict hurdle for voluntary compliance in Income-Tax Act. (Only solution is to delete all certificates in Income-Tax Act, 1961)
NIMESH MAHESHWARI JI,
Your Question to Mandeep Singh,
As required by you, I here below furnish 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
Central Board of Direct Taxes mandated to upload Tax Audit Report for the Asst. Year 2013-14. It is clear from the above data that number of Tax Audit Returns have come down substantially. From these stastitcal data, it is evident that ICAI is not only regulating their members, but also regulating compliance under Indian Taxation Laws.
Following are the reasons for change in DTC-2013 Sir,
1. Mandatory upload of Tax Audit Report and its results.
2. Including all business class U/s 44AD (Nothing left to Non-CAs)
3. Wrong amendments carried out to 2nd Proviso of Section 44AB
of Income-Tax Act, 1961 in Finance Act, 2001.
Nimesh Maheshwari Ji,
In this world both positive & negative force should be treated as action of GOD. Ultimatley action of persons with good motive & intention stands right. Why you feel angry about the comments in this blog. Becasue of all these comments in this blog DTC-2013 will come out with good shape that will take care of all Tax Professionals & Govt. revenue. Let it happen Sir.
NIMESH MAHESHWARI JI,
YOUR ARE INSULTING A DOCTRATE HOLDER WHICH IS NOT CORRECT, WHAT HE SAYS IS THE REALITY OF SITUATION PREVAILING IN INDIA ON DATE. I HAVE PRACTICALLY COME ACROSS SUCH SITUATION. IN THE PROCESS OF CAS ACTING FOR CLIENT BEFORE TAX OFFICERS, THEY ARE MINITING MONEY BY PLACE THE MONEY GIVEN BY CLIENTS IN TWO POCKETS ON RECEIPT FROM CLIENT, BEFORE VISITING TAX OFFICE. I HOPE YOU UNDERSTAND. THAT IS WHY ICAI HAS PLACED STRONG OPPOSITION FOR EXPANDING THE DEFINITION OF ACCOUNTANT IN DTC.
NIMESH MAHESHWARI JI,
Among Cash, Mercantile & Mixed System of Accounting, Mercantile System reflect true picture of profit or loss of the business enterprise. In this system all expenses relates to the year, whether paid or payable are debited to Profit & Loss A/c & payable portion shown in liability side of Balance Sheet, similarly all income relates to the year, whether received or receivalbe are credited to Profit & Loss A/c receivable portion show in asset side of Balance Sheet. Further, expenses incurred in advance & income received in advance are shown in assets & liability side of the Balance Sheet respectively. This is thought at PUC level to commerce students. Based on this principle only all other accounting standards are framed to take scope & to create confusion in the minds of public.
In Rule 12A of Income-Tax Rules, 1962 only following five class persons are authorised to prepare return under Income-Tax Act, among eight class of persons authorised to act as representative of assessee U/s 288(2) of Income-Tax Act. This means below mentioned five class of persons posses the knowledge of accounting standard prescribed in Section 145 of Income-Tax Act required for Income-Tax Practice. Knowldge of AS framed by ICAI/IFRS is not yet all required for Income-Tax Practice.
1. Legal Practitioners
2. Cost & Management Accountants
3. Company Secretaries
4. Chartered Accountants
5. Income-Tax Practitioners
All the above five class of persons satisfy the qualification prescribed under Income-Tax Act. Hence, there should not be any discrimination among them as far as practice of Income-Tax law is concerned. Ie, all persons should be equally authorised to acts, including tax audit & other certification work under Income-Tax Act, to meet the end of justice.
HOWEVER, NOW MINISTRY OF FINANCE OPENED ITS EYE & COME TO KNOW THE FACT THAT THEY WERE IN DARK ROOM SINCE 1984
DEAR ALL MEMBERS,
Institute of Chartered Accountants of India an act passed by parliament used by their members to fulfil their personal agenda. At least from onwards ICAI follow the principal of LIVE & LET OTHERS LIVE to prove its SOCIAL RESPONSIBILITY
DEAR ALL FRIENDS
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.
DEAR ALL BUREAUCRATS
CBDT & DEPTT. OF REVENUE (MINISTRY OF FINANCE)
HOW MANY YEARS CBDT & DEPTT.OF REVENUE (MINISTRY OF FINANCE) FAVOUR ONLY CHARTERED ACCOUNTANTS?
WHY YOU (THE BUREAUCRATS) SUPPORTS A SINGLE INSTITUTE IN THE NAME OF EXPERTISE, COMPETENCIES ETC. ?
I DO NOT UNDERSTAND WHAT IS THE ACTUAL CAUSES BEHIND THIS.
DONT THINK THAT CA’S ARE EQUIVALENT TO GOD.
PLEASE OPEN YOUR EYES AND ALLOWS CMA PROFESSIONALS IN THE DEFINITION OF ACCOUNTANT IN DTC 13 OF THE INCOME TAX ACT.
The expression 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.
MANDEEP SING JI,
ONE MORE THING, WHILE SENDING THE STATITICS OF ADDITIONS MADE ABOVE 2 LAKHS IN SCRUTINY ASSESSMENTS IN 44AB CASES TO CBDT, INSIST CBDT TO TAKE ACTION U/s 277A OF INCOME-TAX ACT IN ALL CASES OR DECIDE ABOUT RETAINING MANDATORY CA CERTIFICATES IN INCOME-TAX ACT/DTC
K.MUKAMBIKA & Neilufer Cushettji ji
I was obtained this information trough RTI & send to CBDT & MINISTRY OF FINANCE near about 20 times. Neilufer Cushettji ji RTI information only contained information regarding cases selected under scrutiny in which department made more than 2 lac addition. out which how many cases are audited & how many cases are non audited.
Sir as per information provided by the department.After this I reached on the conclusion that there is no benefit of reports u/s 44ab for Non- corporate assessees from Chartered accountants or Non tax professional & its just extra financial burden on assessees. These Reports misleads assessees for that mostly cases selected under scrutiny. Assessees wants to pay tax but they can’t give their consent properly due to complicated accounting system by government. This system plays important role in huge revenue loss to Government.
I am also surprised since 30 years government not find out any solution to tackle such kinds problems. Whether Govt. only intention to give financial advantage to CA’s. I am sure since 1984 ICAI income must be increase 50 times & you need to take balance sheets of ICAI under RTI. These Reports only increase Revenue of ICAI instead of our country. If these statutory reports didn’t introduced in income tax in 1984 then there is no identity of CA PROFESSION IN PRESENT TIME.
If no monopoly is desired, let all fields be opened to all professionals, no speciality to be reserved for any particular professional. Let CWA and CS enter into the fields occupied by only CAs and also let CAs enter into the fields of CWA and CS. Then there won’t be any bickering. And as far as integtity is concerned it is personal trait of individuals , it is not related to any profession, we all know how medical profession is run. Likewise area reserved for advocates be opened for all other financial professionals except criminal cases. In the same way so called consultants who don’t audit financial statements, they too be allowed to audit. Let all such professionals be treated at par with uniform diciplinary actions.And let them face all circumstances desirable or undedirsble and then all of them will mind their own business.
Dear Mr. Ram,
U call a CA as Chartered Arrogance and you yourself show such arrogance that you are even speaking that Accounting standards, auditing standards are very easy.
Why don’t you get yourself enrolled for CA course. May be then you will understand the rigorous training and curriculum which a CA student has to go through. Not to mention the experience which an article trainee gets by meeting and interacting with many learned professionals.
I still don’t get why some people who are “not worth acknowledging” are commenting over the existence and relevance of a professional body set up by an act of Parliament?
As for comments by Mr. K Mukambika and IBM, I dont think that they even consider what is the discussion about. They are just venting out their angers towards CA professionals.
Dear Dr. Arun Draviam Ji,
with reference to your comment dated April 18, 2014 At 1:38 PM, may I suggest you to please mind your thoughts and language?
You speak of CAs as brokers?
So by wanting to add the professional bodies for being eligible for tax audits, do you mean that you want a share in that “so called” BROKERAGE?
Dear Mandeep Singh Ji,
With reference to your comment dated April 18, 2014 At 8:43 PM, can you please present the total number of tax audits conducted u/s 44AB?
Any opinion based on incomplete facts and figures is vague. I understand that you have facts related to 2000 offices from which above data was stated. You must also have this data with you.
Moreover, also present that out of above no. of cases, what were the no. of cases against which appeals were “initiated and accepted” and “rejected”.
we know how to respect all the professional bodies in India such as ICAI, ICSI, ICWAI etc. and each of them have there relevance.
Further, by commenting on the quality of work of members of professional body, what are you trying to achieve here?
There should be some difference between other professional & CA.Because CA holders have atleast some basic knowledge about all the subjects which are required to conduct the Tax Audit.CMA & CS are 0% of knowledge about Tax Audit.
If the Government allows CMA & CS into Tax Audit, Then ICAI take initiate regarding allow CPT holders can also do the Tax Audit. Because CS & CMA are equal to CPT exam conducted by ICAI.
Now the time has changed completely.Its time to Regulate CA profession closely thats why NFRA is in existance. The image of india is malign globally only due to the faulty & unregulated Audit practices in India.After SATYAM & other SCAMS in india the integrity of CA profession is always on doubt.
-Recent decision of MCA to limit the Audit Cap to only 20 companies (sec 141 of companies Act 2013)is an excellent decision.Earlier with no cap on private companies the quality of CA has been drastically decreased.
-Opening of tax Audit for CS & CMA is a level playing ground & justification to the Profession. In this way the Ministy shall utilise the services of CS & CMA and the utilisation of its all resources/extended Arms (CS CMA CA)for the revenue collection/Audit.
Here the name/Brand doesnt matter, but the matter is “KARMA”
Thanks,
K.MUKAMBIKA JI
I COMPLETELY AGREE WITH YOUR STATEMENT. IN INDIA A COMMON PROVERB IS ‘CA HAI SAB JANTA OTHER PROFESSIONALS KUCH NAHI JANTA’.
TAX AUDIT WAS INTRODUCED IN THE YEAR 1984 U/S. 44AB OF THE INCOME TAX ACT WHICH IS MADE ONLY BY A CHARTERED ACCOUNTANT. FROM THAT YEAR MONOPOLY AND CORRUPTION WAS STARTED . NOW A DAYS MONOPOLY AND CORRUPTION IS SPREAD OVER ALMOST ALL THE GOVT.DEPARTMENTS OF THE COUNTRY.THIS DEPARTMENTS INCLUDES CBDT & DEPTT. OF REVENUE ALSO. GOVT. DOES NOT WANT REVENUE,IF GOVT. WANTS REVENUE AT FIRST OTHER PROFESSIONALS LIKE CMA’S MUST BE INCLUDED IN THE DEFINITION OF ACCOUNTANT UNDER DTC OF THE INCOME TAX ACT , OTHEWISE PLEASE STOP THIS DRAMA.
To: M.A.Kumar Says: “Dr Arun Draviam, what do you know about the CA”
Sorry to give you an unsolicited answer. CA stands for CHARTERED ARROGANCE. This is a perfect answer the way you questions.Now you will ponder a moment and think how much pain you took to qualify this toughest course on earth and all NON CAs are least know the DR/CR, A/c Standards and Principles etc..Do you think The so called A/c standards and principles are such tough subjects like rocked science which can not be understood by other NON CAs ? Please note ICAI only copy/paste with little modification of IASB standards and issues those standards in India claiming to be the original issuing authority. Please go through the Cost Accounting Standards issued by ICWAI they are tough,the original ones and definitely intellectually stimulants that enables an ICWA to easily understand these Financial Accounting Standards. Like a fanatic ICAI council and Some CAs Hatred ness towards other Non CAs are inculcated in a CA student during their article ship and the same mind set is reflected in ICAI council. When ICAI claims that in a free market cost audit is not required as all companies are bound to be sel f cost consciousness.. then in the same argument why can not the accountants definition be monopolised by a single institute in the name of expertise,competencies etc. Let India Inc choose wide range of professional as ACCOUNTANT.
M.A.kumar ji,
YOUR ARE INSULTING A DOCTRATE HOLDER WHICH IS NOT CORRECT, I SAY CA MEANS COMMISSION AGENTS BETWEEN TAX DEPARTMENT & ASSESSEES. THIS IS THE REALITY OF THE PRESENT SITUATION. THEY ARE MINTING MONEY IN THE PROCESS. HENCE, THEY ARE NOT READY TO ALLOW RELATED PROFESSIONALS IN THE DEFINITION OF ACCOUNTANT IN DTC-2013
To
mandeep singh
additions are made when cases are picked up for regular assessments. So please also inform the cases picked up for regular assessment as %age of audited and non audited cases.surely audited casrs which are having big turnover are picked up for regular assessment.
Dr Arun Draviam, what do you know about the CA
Please include others in the definition of accountant and let them do the audit u/s 44AB and let them prove that they prevent govt revenue leakages. Only time will tell how can they do it when working under undesirable circumstances like their professional brothers called chartered accountants.
Dear All friends,
IN THE BELOW PARA OF ICAI LAST WORD USED “NATION” IS ONLY IN WRITING BUT NOT THE INTENTION OF ICAI
Members be assured that the Council of ICAI is equally concerned and will not leave any stone unturned to save the profession and the nation.
MANDEEP SINGH JI,
I THINK YOU GOT THE SAID INFORMATION BY PLACING RTI TO INCOME-TAX DEPTT. I SUGGEST YOU TO SEND ALL SUCH INFORMATION TO CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI-110001.
DEAR ALL FRIENDS,
ORIGINAL INCOME-TAX ACT, 1961 WAS FANTASTICALLY DRAFTED BY LEARNED OFFICIALS IN FINANCE MINISTRY AND IT WAS CAPABLE OF MEETING THE EXPECTATIONS OF THE GOVT. IN ALL FUTURE EVENTS, EXCEPT REQUIRING AMENDMENTS FOR EVENTS/CHANGES TAKING PLACE IN THIS 21ST CENTURY. DISTURBANCE TO THE ORIGINAL INTENTION OF LEGISLATURE TO THE SAID INCOME-TAX ACT, 1961 STARTED IN 1984 BY THE INTERVENTION OF INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA BY WAY OF INSERTING MANDATORY TAX AUDIT CLAUSE U/S 44AB BY ONLY CA’s, WHICH HAS STRUCK DOWN THE INTENTION OF LEGISLATURE IN RULE 12A OF INCOME-TAX RULES, 1962. IE, INDEPENDENCY OF FOLLOWING FOUR CLASS OF TAX PROFESSIONALS WHO ARE AUTHORISED TO PREPARE RETURN WAS TAKEN AWAY. THIS WAS ALSO CAUTIONED BY ONE OF THE SENIOR MEMBER IN CBDT SHRI.P.C.PADHI AT THAT TIME BY WRITING DISSENTING NOTE ON INTRODUCTION OF TAX AUDIT BY ONLY CAS IN INCOME-TAX ACT. DEAR ALL FRIENDS, IF YOU WANT TO SEE THAT, PUT AN RTI TO CBDT SEEKING WANCHOO COMMITTEE REPORT CONTAINING DISCUSSION ON INTRODUCTION OF TAX AUDIT IN 1984:-
1. Legal Practitioners
2. Cost Accountants
3. Company Secretaries
4. Income-Tax Practitioners
SINCE THEN CA CERTIFICATES STARTED ENTERING INCOME-TAX ACT & ON DATE 46 PLUS CA CERTIFICATES ARE THERE IN INCOME-TAX ACT. HENCE, NEW NON-CA TAX PROFESSIONALS ARE NOT ENTERING TAX PROFESSION. NOW, GOVT. HAS TO RELAY ON ONLY CAS FOR SEEKING VOLUNTARY COMPLIANCE IN INCOME-TAX ACT. THIS IS THE MAIN REASON THAT IN INDIA ONLY 2% OF POPULATION ARE UNDER TAX NET. WHEREAS IN OTHER COUNTRYS 70% TO 80% OF POPULATION ARE UNDER THE TAX NET. I THINK NOW GOVT. HAS OPENED ITS EYE, HENCE DEFINITION OF ACCOUNTANT HAS BEEN EXPANDED IN DTC. IF AGAIN GOVT. COMES UNDER THE INFLUENCE OF CHARTERED ACCOUNTANT BY TAKING ADVICE FROM THEM, IT WILL AGAIN GO TO DARK ROOM AND CHANCES OF WIDENING TAX BASE AT LEAST IN FUTURE WILL ALSO REMOTE.
Dear All Friends,
TO CBDT/DEPTT. OF REVENUE, MINISTRY OF FINANCE,
In the span of these 30 years after introduction of tax audit in 1984, Income-Tax Deptt. could not get WRONG CLAIMS in TAX AUDIT REPORT FORM NO.3CD issued by so called Chartered Accountants possessing knowledge & expertise in the line, to conclude QUALITY ASSESSMENT. The fact is evident from reply to RTI Application made before Directorate of Income-Tax (Systems), New Delhi. In this situation why 2nd opinion about granting such power of Tax Audit to other related Tax Professionals in DTC-2013 against the above representation made by ICAI. “I AM OF THE STRONG OPINION, THAT ICAI IS AGAIN TRYING TO KEEP THE GOVT. IN DARK ROOM”. If Govt. consider the representation of ICAI, definitely TAX BASE IN INDIA CAN NOT BE WIDENED.
let the ego of ICAI that they are everything get for open debate. I dont know why they say that only CAs know and could do audit and accounts. they are only few conducting accounts and audit work, taking the nation as a whole. but still they monopolise thier area of work and damaging other sister professional bodies. I remember, earlier they said the ICWAI is not eligible to use the word management in case of their proposal for renaming CWA to Cost and Management accountants saying they have no quality of management to use the word management.
let them first use the word management in their own administrative and education programme. upto last year, even a post graduate in commerce was forced to attend entrance exam for joining CA course. still they are not allowing students to pursue more than one course during articleship saying it will cause loss focus on subject instead of understanding the caliber and capacity of a student/human brain. even now, a student with thorough knowledge in computer is required to undergo one month computer course with a fee of 4000 to study basics. even now, the exams are linked with articleship. I challenge all CAs to inform whether, there is any accounting professional body around the world having a dirty course structure and lack of recognition like Indian ICAI. what institute need is money. now the ccourse structure is affordable to a student having enough money and time which are not available for all
My Chartered accountant friends
I am posting here quality of work done by CA’s in their audits u/s 44ab. If you are talking of such quality of work then I strongly in favour of there is difference between ASIA & AUSTRALIA continentals.
Both continentals are equal according to its geographical locations.
781 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
772 AUDITED U/S 44AB BY CA
9 NON AUDITED CASE
241 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
229 AUDITED U/S 44AB BY CA
12 NON AUDITED CASE
200 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
200 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
185 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
185 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
181 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
181 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
88 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
87 AUDITED U/S 44AB BY CA
1 NON AUDITED CASE
159 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
159 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
155 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
155 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
148 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
148 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
127 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
127 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
121 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
121 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
120 TOTAL CASES IN WHICH ADDITION MORE THAN 2 LAC
120 AUDITED U/S 44AB BY CA
0 NON AUDITED CASE
TOTAL U/S 44AB NON AUDITED
2506 2484 22
sir if CA’s talking of such kind quality work then their is no need such kinds quality for widen our country revenue. This information from various INCOME TAX DEPARTMENTS FROM INDIA.I have same kind information near about 2000 offices all over india. which is not possible to publish here.
DEAR ALL PCMA & PCS,
Don not believe CBDT, Deptt. of Revenue, Ministry of Finance, any thing may happen by the influence of vested interest. Because, they are capable for satisfying the needs of bureaucrats. Ie, they may turn cat to dog. Get ready to stay in your original status. Because, Govt. does not want revenue, but wants only Nil, NA, Not Possible CA Certificates only.
DEAR ALL,
THE TERM ACCOUNTANT CAN BE INCLUDED IN THE INCOME TAX LAW AND COMPANIES ACT IN ORDER TO IDENTIFY WHO WRITES/MAKES DATA ENTRY/ FINALISATION OF ACCOUNTS.
THERE SHOULD BE A NEW DEFINITION THAT INDEPENDENT ACCOUNTANT/AUDITOR TO BE INSERTED TO INCLUDE ONLY CHARTERED ACCOUNTANT TO AUDIT AND CERTIFY THE FINANCIAL STATEMENTS.
FOR THE TERM ACCOUNTANT NO EDUCATION QUALIFICATION IS NECESSARY. EVEN PERSON WHO IS LITERATE ENOUGH AND CAN MAINTAIN THE BOOKS OF ACCOUNT, WRITING AND FILING THE BILLS, CHEQUES AND VOUCHERS. EVEN PART TIME ACCOUNTANTS ALSO CAN BE INCLUDED LIKE FINANCIER AND ACCOUNTANT, BEAUTICIAN AND ACCOUNTANT, ADVOCATE AND ACCOUNTANT, TAX CONSULTANT AND ACCOUNTANT, AGRICULTURIST AND ACCOUNATNT, PHOTOGRAPHER AND ACCOUNTANT, REALM ESTATE AGENT AND ACCOUNATNT, ENTERTAINER (JOKER) AND ACCOUNTANT ETC.!!!!!!!!!!!!!
SO BE HAPPY WITH THE DESIGNATION OF ACCOUNATNT.
REGARDS
SATHYA
There are other accounting professions just as the Accountant Officers of the Indian Air Force, Indian Defence Accounts Service, Indian Revenue Service, Officers who do the audit function under the CAG at the centre as well as the AGs in the State Government. They are more expereinced in tracking accounting defaults / deficiencies that the chartered accountants cannot cope up with. The CAs practice more in the corporate world whose accounts are a small iota in the ocean of accounts in the Government. CAs over a period have come to be known as brokers between the Income Tax Officials and the assessees. DTC has done the right job by including other professions in the definition of accountants.
it is a serious issue regarding proposed definition of accountant in companies act.
We hope the matter resolves in our favor.
Article showing ,CA’s revenue leakages rokte hai…….ITS TOTALLY HORRIBLE
IF THE REPRESENTATION OF ICAI IN THE ABOVE ARTICLE ACCEDED BY DEPTT. OF REVENUE, MINISTRY OF FINANCE, GOVT. OF INDIA, WE THE MEMBERS OF INDIAN COUNCIL OF TAX ADVOCATES, NEW DELHI SHOULD PREFER WRIT BEFORE COURT OF LAW WITH THE HELP OF BAR COUNCIL OF INDIA, NEW DELHI ON THE FOLLOWING GROUNDS:-
Indian legislature provided special class of persons called Advocates in Advocates Act to practice law. Hence, apperance clause not yet all required in any Indian Tax Law Statute. In the case of Bar Council of India Vs A.K.Bajaji apex court clearly held that Advocates alone are entitled to practice the profession of law both in Litigious and Non-Litigious matters, nullifying the effect of Section 33 of Advocates Act. This also confirms to Section 29 of Advocates Act. Therfore, appearance clause in all Indian Tax Law statute require deletion.