CA responsibilities

Hello,

We are a private limited company and have a CA since more than a decade but since past few years he isn't providing proper service but asking for hike in fees every year to the time to 20%.

Would request some experts to guide on a few points:
1. What's the responsibility of CA in getting back refund from IT? we have pending refunds of 3 years (not latest, around 4/5 years back) but all the CA is doing is writing an email for same and not taking up any responsibility of getting the same to us.
2. He is constantly ignoring our emails for all pending matters.
3. If we plan to change our auditor, do we require an NOC from the CA to amend details in ADT form?
4. He tries to evade from this basic responsibilities like proving a stamped n signed copy of complete set of audit report. He intends is to take a print out of the set in copies and go to him to get it signed and provide him the same too!
5. We haven't cleared his full payment and a particular amount had been kept on hold in lieu of the pending refunds. He wouldn't provide an NOC till we clear the payment and if we clear his full payments, none of our pending issues would be cleared by him. What's the solution to this??

If experts could kindly guide of financial responsibilities that a CA has and if he doesn't fulfill those & refuses to give NOC, can any action be taken against him?

Thanks in advance,
Kavita

Hi Kavita, I understand this is a tricky and frustrating situation. Here’s a detailed response to your points:

1. Responsibility of CA for Income Tax Refunds

The CA’s job is to file accurate tax returns and follow up reasonably on refunds.
However, obtaining refunds can sometimes depend on tax department delays.
The CA should keep you updated and take appropriate steps such as filing appeals or rectifications if needed.
Simply sending emails occasionally is not enough; a professional CA should be proactive and persistent in follow-ups.

2. Ignoring Emails

Ignoring client communication is unprofessional.
You can formally communicate in writing (email/letter) your dissatisfaction and demand prompt attention.
If the CA continues ignoring, you have every right to terminate the relationship and find another CA.

3. Changing Auditor and NOC

When changing your auditor, you don’t strictly need an NOC from the previous auditor.
You can file Form ADT-1 (Notice of appointment of auditor) and also submit Notice of resignation by the previous auditor with ICAI.
The previous auditor can send a resignation letter to the company and ICAI.
However, a smooth transition is usually helped by cooperation.

4. Audit Report Copies and Signing

You have the right to get a signed and stamped copy of the full audit report.
It is professional and ethical for the CA to provide a printed, signed, and stamped copy.
Your CA’s insistence on just signing copies when you visit is not standard practice and sounds like reluctance to cooperate.

5. Holding Payment and NOC

You are not obliged to clear full payment if services are incomplete or unsatisfactory.
Holding payments due to pending issues is your right.
The CA refusing to provide documents or NOC until full payment is cleared is unprofessional and bordering on unethical behavior.
You can send a legal notice or escalate the matter to ICAI for professional misconduct.

Actions You Can Take:

Send a formal written communication to the CA outlining your grievances and demanding documents/NOC.
If unresolved, you can file a complaint with ICAI’s disciplinary committee against the CA for professional negligence/unprofessional conduct.
Engage a new CA and notify ICAI through Form ADT-1 for auditor change.
Consult a legal expert if necessary for enforcing your rights.

Summary:

The CA has a fiduciary and professional duty to serve you diligently, provide complete documents, and cooperate. Refusal or neglect can be challenged through ICAI or legal routes.