Icai concerns on dtc

New Direct Tax Code 1286 views 3 replies

Sathish M

Management Accountant

40581 Points Joined June 2010

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

Replies (3)

Rajib Saha

Accounts Officer

239 Points Joined July 2013

HOW CAs ARE CLAIMING THAT THE OTHER PROFESSIONALS HAVE LIMITED KNOWLEDGE WITH REGARD TO TAXATION AND AUDIT? IT IS UNFAIR TO UNDERESTIMATE THE OTHER PROFESSIONALS. EVEN THE NON-PROFESSIONALS HAVE BETTER KNOWLEDGE AND EXPERTISE IN AUDITAND TAXATION.THAN CAs.

I THINK THERE SHOULD BE LEVEL PLAYING FIELD FOR ALL THE PROFESSIONALS ( INCLUDING LEGAL PROFESSIONALS) AND THE BUSINESS COMMUNITY SHOULD HAVE FREEDOM TO SELECT PROFESSIONALS.

Rajagopalakrishnan R

PARTNER

1422 Points Joined May 2010

I dont think the issue here is level playing field. This would be like saying - a patient should have freedom to choose either a cardiac surgeon or a gyneacologist to do his open heart surgery.

The issue here is core competence. What would be a CMA's reaction if some act were to say that both CS' and CA's are also allowed to issue cost audit reports? or for that matter if CA's and CMA's were allowed to issue secretarial compliance reports?

It is part of the core training that Taxes Accounting and Audit are the core areas of the CA curriculum. The authorities need to respect this.

But the moot question is respect must be commanded and not demanded!!??!!

Mihir

Wealth Manager

5293 Points Joined December 2008

Some people from other professional body such as CMA and CS, with experience, could do a better job than a CA in audit/taxation. However, the Act should maintain that audit/taxation job done by a CA shall be applicable and legit.