Other services by auditors

Self Employed

25th April 2014

Dear Members

I give below Section 144 of the New Companies Act, 2013 which stipulates that the Statutory Auditors cannot provide certain services (see below "a" to "i"). In this connection my query is whether the statutor auditor can provide tax audit services to the company. Whether providing tax audit servics will attract Sec 144(i) of the New Act.

144. An auditor appointed under this Act shall provide to the company only such
other services as are approved by the Board of Directors or the audit committee, as the case
may be, but which shall not include any of the following services (whether such services are
rendered directly or indirectly to the company or its holding company or subsidiary company,
(a) accounting and book keeping services;
(b) internal audit;
(c) design and implementation of any financial information system;
(d) actuarial services;
(e) investment advisory services;
(f) investment banking services;
(g) rendering of outsourced financial services;
(h) management services; and
(i) any other kind of services as may be prescribed

Kindly clarify

with regards


Practising Company Secretary

Tax audit is within the scope of the Statutory Auditors....so no penalty

Total likes : 2 times

CA; CS-Final (One Group); DISA (ICAI); Insolvency Professional

Can Statutory Auditor provide Professional Services relating to the following areas: -

a) Consultancy on Co. Law matters including e-filing of various e-forms with MCA,

b) Consultancy on Income Tax matters including e-filing of ITR & Assessment procedings,

c) Consultancy on Service Tax matters including e-filing of ST Returns,

d) VAT consultancy including e-filing of Returns,

e) Representation before CLB/ MCA, Income Tax Deptt, Service Tax Deptt, VAT Deptt etc.

f) CMA Data preparation,

g) Appraisal of Working Capital Limits & Term Loan from Bank.


In my opinion (but I am not sure), above services can not be provided now by Statutory Auditors as Services mentioned at Sl. No. (a) to (f) will fall in "Management Services" and Service at Sl. No. (g) will fall in "Rendering of Outsourced Financial Services". Is there any clarification on various services included under "Management Services"? Please clarify.



I think Management services should not cover certification required under any Act such as Transfer pricing, tax audit, limited review etc. 


Dear All ,

It is responsibility of management to prepare and finalize books of accounts of corporate before commencing statutory audit by CA firm .  and hence it is management responsibility to comply with and strictly  follow all relevant tax and other Indirect laws provisions prior to  finalize books of accounts   . If the statutory auditor renders any tax and GST related consultancy to the same corporate wherein he is appointed as statutory auditor , that tax consultancy would fall under  the restricted or prohibited service ( Management service ) listed under section 144 of Companies Act 2013  



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