An
important phenomenon of recent times is the rapid growth of the
accountancy profession. The vast changes occurring in the economy of
the country have been placing great responsibilities on the Chartered
Accountants. It also constitutes a challenge to the profession to bring
to bear their knowledge and skill in their specialised fields of
activity. The types of functions generally performed by the Chartered
Accountant are varied. The more important ones amongst them are
discussed below. |
| Accountancy |
| This
includes the writing up of accounts and the preparation of financial
statements. It encompasses a wide area ranging from simple Book keeping
to complex financial
analysis. |
| Auditing |
| Possibly
one of the most important functions of a Chartered Accountant, it is
here that his specialised training, skill and judgment are most often
called into play. The purpose of auditing is to satisfy the users of
financial statements that the accounts presented to them are drawn up
on correct accounting principles and that they represent a true and
fair view of the state of affairs of the organisation. |
| Taxation |
| With
a number of taxes on the statute book, current and continuing tax
information has become vital to the effective economics of business
management. The assessment of taxes is very closely linked with
financial accounts. The Chartered Accountant with his experience in
accounts is in an
advantageous position for preparing the returns for tax purposes,
representing assessees before the Income-Tax authorities and rendering
general advice on taxes to his clients. An additional responsibility
placed on him recently is that his services will be required by the tax
department for auditing complicated cases, having large revenue
potential. The requirement under the Income-Tax law for compulsory
maintenance of accounts by the specified categories of taxpayers would
also make a demand on his time and services. Every assessee with a
minimum turnover of Rs. 10 lakhs in the case of professionals and Rs.
40 Lakhs in the case of business concerns is compulsorily required to
get his accounts audited under the Income-Tax law. This has
considerably helped the revenue authorities in making proper
assessments. |
| Cost Accountancy |
| A
Chartered
Accountant is also trained to ascertain the costs of production and of
processes at different levels of operations in the manufacture of a
product and in the rendering of a service. He is also equipped to
provide costing information for the guidance of management, introduce
cost control methods and assist the management in establishing
appropriate selling prices. |
| Special Company Work |
| The
services of Chartered Accountants are frequently sought in connection
with matters such as the formation, financial structure and liquidation
of limited companies. Secretarial and Registration work and the duties
of a Receiver are also undertaken by them, in addition to other company
work. |
| Investigation |
| Chartered
Accountants are often
called upon to carry out investigation to ascertain the financial
position of business in connection with matters such as a new issue of
share capital, the purchase or sale or financing of a business,
reconstruction and amalgamations. Their services are also sought for
undertaking investigations with a view to achieving greater efficiency
in management or administration, finding out reasons for increases or
decreases in profits etc. |
| Executors and Trustees |
| A
Chartered Accountant is also often appointed executor under a will or
trust in order to carry on the administration of the estate or
settlements. Appointment of this nature require the Chartered Accountant to work in Co-operation will solicitors or Lawyers. Conversely, Solicitors or lawyers carrying out works of this kind usually call in Chartered Accountants to assist them in the accounting aspects of their work. |
| Directorship |
| Many
members of the Institute who hold senior position in industry and
commerce are also directors of their companies. Moreover, many members
who are actively carrying on public practice are also directors of
companies. The advantages of having a Chartered Accountant on the Board
of Directors are now well recognised and the practice of making such
appointments has grown rapidly. |
| Companies Secretarial Work |
| In
a well organised company or group of companies, the Secretary is a man
with a professional qualification (often a Chartered Accountant) who,
in addition to his multifarious other duties, is an important link in
the management chain. The continued growth of
limited companies enables the professional accountants to offer
secretarial services to small companies, many of which are being
virtually run by a few individuals who are unable to afford a full-time
secretary. |
| Management Accounting |
| This
is another field in which the Chartered Accountant is able to render a
service which is utilised in a variety of ways like formulation of
policies, day to day control, performance evaluation, etc. |
| Share Valuation Work |
| The
Chartered Accountant undertakes the valuation of shares of public and
private companies when amalgamation or re-organisation takes place for
the purpose of takeover bids and other acquisitions. |
| The Chartered Accountant as Management Consultancy |
| C.As.
play invaluable role in assisting business organisations to utilise
resources effectively, increase their efficiency and achieving their
goals and objectives. as management consultants, C.As. render host of
consulting sevices as under: |
|
| Other Activities |
| Among
the many other duties undertaken by a Chartered Accountant, mention may
be made of service as an arbitrator for the settling of disputes and
those connected with insolvency work, such as the preparation of
statements of affairs and the duties of a trustee in bankruptcy or
under a deed of arrangement |
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Services provided by a CA in the new era!!
Replies (4)
1.2 Professional Opportunities
A. Anti-Dumping Duties
1. Preparation and execution of a well organized business plan
2. Strategic planning, market research for domestic and international markets to avoid anti-dumping problems
3. Analysis of substantive injury to the industry
4. Analysis of various indices affecting the industry
5. Assistance in Dumping calculations, injury studies, verification, expert evidence at hearings etc
6. Preparing Price and Adjustment Data
7. Analyzing Cost of Production
8. Assisting at Verification and Public Hearings
9. Assessing the Strategic and Commercial Implication of Trade Actions
10. Providing detailed reviews of dumping calculation or injury analysis disclosures
11. Assistance in preparing defense strategies in anti-dumping investigation
12. Negotiations for price undertakings, cost records and financial implications etc. in the matter of initiation of the case or in the defense of a case initiated and on participating in the proceedings and minimizing the liabilities, both prior to and after the initiation of the formal proceedings.
13. International pricing analysis
14. Detailed cost accounting analysis
15. Large-scale database analysis
16. Price monitoring analysis
17. Competitive industry analysis
18. Statistical analysis
19. Expert financial analysis and testimony before the Department of Commerce
B. Anti-Subsidy Duties
1. Analyzing the countervailibility of a foreign Government's subsidising exports
2. Examining the legal and economic aspects of various subsidy programs which are actionable under the W.T.O agreements on subsidies
3. Preparing comprehensive financial and substantive representations for the defence and/or initiation of a case
C. Safeguard Duties
1. Safeguard duties are temporary measures in defence of the Domestic Industry which is injured or has potential threat of injury due to sudden surge in imports.
2. To formulate a complete strategy, carry out market research and prepares a comprehensive report for initiation and/or defence of a Safeguard Duty case.
3. Representing exporters to face Safeguard investigations by foreign countries.
4. Representation before WTO Dispute Settlement Forum & other statutory authorities.
5. Preparation of Application on behalf of domestic industry for requesting Government to take actions against the exporting countries.
D. W.T.O Dispute Settlement proceedings
1. Preparation of arguments and evidence for WTO dispute settlement proceedings
2. Advice and strategies for multilateral and bilateral trade negotiations
3. Providing expert analysis and opinions
4. Providing realistic assessments on whether measures can be challenged in the WTO.
5. Preparing and presenting evidence before anti-dumping administrations or in WTO disputes.
.
The professional opportunities in trade remedy measures can further be divided into the following sub-heads:
I. Defining the Primary Parameters of an Investigation
Companies and professionals must address a number of technical issues in the early phase of every antidumping and countervailing duty action. These analyses are critical and go a long way in handling the anti-dumping proceeding. The focus point of treatment of trade remedy measures shall be:
a. Pre-petition subsidy and pricing assessment
b. Cost/benefit analysis of participation in a proceeding
c. Analysis of product scope and matching issues
d. Sales below cost allegations and rebuttals
e. Use of statistical sampling techniques for determining respondents
f. Surrogate country assessment for non-market economy cases
g. Potential antidumping or subsidy margins
II. Preparing Price and Adjustment Data
One of the most difficult and critical elements of any antidumping proceeding is the preparation and analysis of transaction-specific pricing and adjustment data. Government investigative agencies require comprehensive data on prices, discounts, rebates, transportation charges, and selling expenses. In many cases, this information must be sourced and compiled from multiple locations and/or multiple information systems, and merged into a single database. The data must be prepared rapidly and accurately with regards to the following:
a. On-site review of accounting and production records
b. Preparation of allocation methods and spreadsheet
c. Drafting narrative questionnaire responses and technical appendices
d. Coordinating the collection of data from multiple locations
e. Preparing data for submission to the Department of Commerce
III. Analyzing Cost of Production
Nearly every antidumping proceeding requires the analysis and calculation of model or product specific cost of production information. The focus area for the purpose of analysing Cost of Production shall be on:
a. Developing model or product specific costing systems for companies which lack such information in their normal accounting system
b. Applying specialized current cost methodologies in "hyperinflationary" economies
c. Assessing the reasonableness of company accounting methods and host country generally accepted accounting principles
d. Conducting arm’s length pricing analysis of inputs provided by affiliated parties
e. Calculating factor of production information for producers in economies considered to be "non-market"
IV. Assisting at Verification and Public Hearings
On-site verification of submitted information is a standard part of antidumping and countervailing duty investigations. Professional assistance is required by companies in preparing for these laborious audits, and provides assessments of the ensuing official verification reports.
a. Prepare document traces
b. Represent clients at on-site verification
c. Provide technical arguments and analysis for briefs
d. Testify at public hearings
e. Meet with government officials
V. Assessing the Strategic and Commercial Implication of Trade Actions
A company’s position on trade regulatory actions, such as antidumping proceedings, should be framed in advance with synchronisation with its overall business objectives. A Professional approach to deal with potential or actual trade actions prepares a company to effectively deal with Trade remedial actions.
Professional advice is required for the following:
a. Assessment of strategic risks and rewards associated with participation in trade proceedings
b. Assessing the potential costs of trade cases, in terms of impact on sales, production costs, and human resources.
c. Considering alternative sourcing strategies
2 Professional Opportunities
Opportunities for professionals occur in the area of business advisory to their existing clients and new clients who are looking for international opportunities to effect the transition from domestic trade to foreign trade.
Some of the services have been enumerated as under:
1. Advisory on Foreign Trade Policy and Procedures
2. Compliance with Foreign Trade Procedures
3. Setting up 100% EOU/STP/EHTP/BTP/SEZ units
4. Assistance in fulfilling the regulatory and licensing requirements
5. Obtaining government clearances
6. Liasoning across related government agencies
7. Documentation
8. Risk assessment
9. Ensuring compliance of various national rules and regulations
10. Judicious management of finance, credit and security
11. Consulting
a. General
b. Financial
c. Project
d. Taxation
e. Accounting and auditing services
12. Analysis of business operations and facilitation services
13. Formation of a company/subsidiary of a foreign company
14. Development of strategies and implementation plans according to the specific needs of the clients
15. Consulting, documentation and facilitation for
a. Exports and imports for Export-Import Policy
b. Licenses
c. Incentives
d. Logistics
e. Export-Import Finance and benefits from Government Schemes and Programmes
f. Export-Import legal matters
g. Getting Foreign Investment and related matters like Setting up of Business Operations in India including Liaison Office, Branch Office, Subsidiary Company, Joint Ventures,
h. Approval of Investments from RBI/FIPB/Ministries,
i. Quality certification for Foreign Companies exporting to India (as required under BIS regulations),
j. Domestic operations & Incorporations like Formation of companies in India & related issues with ROC, RBI & other Government departments, Registrations with DGFT(IEC), EPC(RCMC), Industry Ministry (IEM), Income tax (PAN), Sales tax, Excise, Representation of Cases Before Central Excise Appellate Authorities, Customs Authorities, Fixation of /Brand Rates for Drawback, Rebate/ Refund of Central Excise Duties, Customs Duties etc.
16. Application and Issuance of DEPB, DFRC, Advance License, EPCG License, Duty Drawback, Deemed Export Benefits
17. Representation and Liaison
a. With DGFT, RBI and Ministries for import-export licenses & other matters,
b. For Foreign companies/NRIs/OCBs in India, Indian Investments Abroad, OCBs etc
18. Technical Advisory to Government bodies and Policy makers on Policy Formulation
19. Planning, Strategizing and implementation for clearances of Project Imports, Plant Relocations, Restricted Items Imports
Agreements on Customs Valuation
1. Representing the corporate and non-corporate clients before customs and subsequent statutory authorities.
2. Helping the Customs Department in correct assessment the valuation aspects of
Imported goods
. The job opportunities for Chartered Accountants in SEZ AND OTHER SIMILAR entities are as follows:
a) Assistance in preparation of project report
A project report outlining the economic and commercial viability of the project needs to be attached along with Form A i.e. Application for setting up a unit in Special Economic Zone.
b) Assistance in Necessary applications, compliances etc. with the Board of Approval, State Government, Development Commissioner, Approval Committee, etc.
c) Consultancy services for developing Special Economic Zones
d) Consultancy services for setting up units in Special Economic Zones,
e) Representation before Board of Approval on behalf of any person aggrieved by the order passed by the Approval Committee.
Rule 55 of Special Economic Zones Rules, 2006 states that any person aggrieved by an order passed by the Approval Committee under section 15 of the Special Economic Zones Act, 2005 or against cancellation of Letter of Permission under section 16, may prefer an appeal to the Board in the Form J.
Rule 61 of the Special Economic Zones Rules, 2006 states every appellant may appear before the Board in person or authorize one or more chartered accountants or company secretaries or cost accounts or legal practitioners or any of his or its officers to present his or its case before the Board.
f) Certification of reports – Form I ( Annual performance reports for Units)
There is a requirement under Rule 22 of the Special Economic Zones Rules, 2006 that the grant of exemptions, drawbacks and concession to the entrepreneur or developer of a Special economic zone will be subject to the condition that the Unit submits an Annual Performance Report in Form I to the Development Commissioner who in turn will submit it to the Approval committee for his consideration. The information given in the form should be authenticated by the authorized signatory of the unit and certified by a Chartered Accountant.
g) Audit report under section 80-I(7)/80-IA(7)/80-IB/80-IC of the Income-tax Act, 1961 in Form 10CCB
h) Report under section 10A (5) and Section 10 B (5) of the Income-tax Act, 1961in FORM NO. 56F and Form No. 56 G respectively certifying that the deduction has been made in accordance with the corresponding section
i) Report under section 80LA(3) of the Income-tax Act, 1961 in Form No. 10CCF
j) Report on Annual performance of units -The information given in the formats for APRs should be authenticated by the authorized signatory of the unit and should be certified for its correctness by a Chartered Accountant with reference to the account records and registers maintained by the unit (Appendix 14 –I-F Handbook of procedures of Foreign Trade Policy)
k) Certificate on production and exports- DTA sale of Gem & Jewellery items will be permitted on annual basis by the Development Commissioners up to 10% of FOB value of exports during the preceding year subject to certain conditions. One such condition is that The application by an EOU has be submitted to DC concerned on yearly basis (licensing-year) giving the details of production and exports made during the preceding licensing year duly certified by a Chartered Accountant and endorsed by the jurisdictional Custom Authority.( Appendix 14- I-H Handbook of procedures of Foreign Trade Policy)
l) Certificate for CST reimbursements certifying receipt of the goods(Appendix 14- I-I Handbook of procedures of Foreign Trade Policy)- The Export Oriented Units (EOUs) and units in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) will be entitled to full reimbursement of Central Sales Tax (CST) paid by them on purchases made from the Domestic Tariff Area (DTA), for production of goods and services as per EOU Scheme subject to certain conditions
The unit has to present its claim for reimbursement of CST in the prescribed form (Annexure - I) to the Development Commissioner of the SEZ concerned or the designated officer of the EHTP/STP.
Eligibility criteria for Chartered Accountants firms:
(i)In case of units located in the States of J&K, Orissa, North-Eastern States, Andaman and Nicobar Islands and Lakshadweep, the Chartered Accountant firm should be at least a Sole Proprietorship firm who should be an FCA and engaged full time with the firm.
(ii) In case of partnership Chartered Accountant firms located in the regions indicated in (i) above, should have at least two full time partners, one of whom should be an FCA.
(iii) In case of units located in other regions, the partnership Chartered Accountant firms should have at least one full time partner, who should be an FCA.
(iv) For the regions indicated in (i) above, the Chartered Accountant firm be located in the area where the unit is situated otherwise qualification of (iii) shall apply.
(Appendix 14-I-I Handbook of procedures of Foreign Trade Policy)
m) Assistance in registration with Software Technology Parks of India.
To establish a STP Unit, registration with STPI is required.
n ) Certification of Statement of Exports made in the preceding licensing year in the format given in Appendix 26 for Annual Advance License purposes ( Handbook of Procedures Vol 1-2004-09)
Advance licence can be applied for annual requirement for a particular product group by status holders and by the other exporters having at least past two years export performance. For the completion of the export obligation as stipulated in the condition of the licence, the exporters are required to submit proof of export obligation fulfillment
Sir,
can i apply for import and export license for garments products through online. if yes, can u provide me with concern site ID and procedure for applying for license.
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