List of CAs issuing more than 400 TAR; 18.87% CAs issued more than 45 Tax Audit Report- CAG
Control on number of tax audit assignment
In order to maintain the quality of tax audit to be conducted by CAs, ICAI issued Guidelines15 for the Members under the provisions of the Chartered Accounts Act, 1949. It prescribed a limit of 45 tax audit assignments that can be under taken by a CA in a FY under Section 44AB of the Income Tax Act, 1961. In case of a Firm, specified number of tax audit assignments shall be applicable for every partners of the Firm. In view of the enhancement of professional competence of members to perform service in IT enabled environment, ICAI raised (February 2014) the limit of tax audit assignments from 45 to 60, to be made effective from audits conducted during FY 2014-15 onwards.
We observed that there was no system in field offices of ITD to see that a CA had not crossed the limit prescribed by ICAI on number of tax audit assignments. ICAI has prescribed Form of Tax Audit particulars to be maintained by members/Firm. We approached ICAI (August and September 2014) to intimate whether any mechanism exit to ensure the compliance of its guidelines by CAs. It was informed by ICAI (September 2014) that maintenance of records is self regulatory mechanism and the information so maintained can be called upon by ICAI for checking adherence of the guidelines. However, any formal complaint received by ICAI was acted upon within the framework provided in the Chartered Accountants Act and the Misconduct Rules framed there under.
As per the information provided by DGIT (Systems) of ITD (August 2014), 65,898 CAs submitted at least one TAR for AY 2013-14. Out of total 65,898 records of CAs, 81.13 per cent of CAs adhered to the limit prescribed by ICAI. Remaining 18.87 per cent of CAs (12,435 CAs) submitted more than 45 TARs. Excess number of TARs ranged from 46 to 2471. Table 3.1 shows stratification of the total number TARs issued by CAs and its percentage.
15 Council Guidelines no. 1-CA(7)/02/2008 dated 08 August 2008
Table 3.1: Stratification of total TARs issued by CA for AY 2013-14
|Range of TARs issued||Total Number of Accountants||Percentage of Total Accountants|
Table 3.2 shows top 22 CAs who issued more than 45 TARs for AY 2013-14.
Table: 3.2 showing CAs issuing more than 400 TAR for AY 2013-14
|Chartered Accountants||Membership Number||Number of TARs|
|1. Pralay Chakraborty||059736||2,471|
|2. Partha Pratim Mukhopadhyay||056366||990|
|3. R Muralidharan||024060||796|
|4. Rajesh Kumar Gupta||074194||640|
|5. Swapan Acharyya||062815||638|
|6. D Sundararajan||010150||619|
|7. B C Vadivel||206700||612|
|8. Raj Hans||087767||586|
|9. Samir Pushpvadan Gandhi||039251||551|
|10. Navin Agarwal||078175||522|
|11. Poulose Shaji||022909||513|
|12. A Kulathooran Pillai||018792||510|
|13. Sukdeb Haider||051185||494|
|14. Chetan Premchand Shah||031239||487|
|15. P Ramalingam||019516||478|
|16. Arun Kumar||097929||461|
|17. S Vairavanathan||004736||457|
|18. Radhakanta Das||062863||428|
|19. Suresh Kumar Goyal||084153||417|
|20. Hetal Bhailalbhai Dhamelia||119864||415|
|21. TS Ventakaraman Lakshmi||022214||414|
|22. Jai Bhagwan Mittal||084512||401|
The information available with DGIT (Systems) has not been shared by ITD to ICAI nor did ICAI approach ever to ITD to furnish such information. In view of lack of monitoring of number of tax audit assignments either by ITD or ICAI, the purpose of maintaining the quality of tax audit have suffered. As the work of tax audit assignments is voluminous work, issuing more than prescribed TARs is fraught to suffer in quality.
In the interest of revenue, the Act should have provision to prescribe for quality of tax audit assignments rather than relying on ICAI. Therefore, ITD may consider making suitable provision in the Act by restricting number of tax audit assignments in consultation with ICAI. In an automated environment of e-filing by CAs, prescribed limit can be adhered by providing suitable controls.
There is no system in ITD to validate the membership number issued by ICAI to stop unscrupulous CAs practicing the profession.