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Tax audit & Maintenance of books of accounts by same CA Firm

1171 views 2 replies

ASHUTOSH KUMAR SINGH

AsstAccounts Manager

24 Points Posted on 02 July 2010

Can its possible a CA firm providing service of maintaince /preparing books of accounts and also he is a Tax auditor

or its coverage on professional ethics.

Replies (2)

Sunil Liladhar Kotak

Manager (F & A)

2025 Points Posted on 02 July 2010

I think it is not allowed

Amir

Learner

4016 Points Posted on 02 July 2010

Hi Sir,

I tried to search the exact citation for it but could not find it.

Nevertheless, I found another post -It is clear that when Internal auditor is not allowed to accept the tax audit then how can a person involved in book keeping be allowed to accept the tax audit........?

Internal Auditor cannot be appointed as a Tax Auditor - (12-12-2008)

The Council in its 281st meeting held from 3rd October, 2008 to 5th October 2008 at New Delhi considered an issue arising from the Guidance Note on Tax audit under section 44AB of the Income-tax Act,1961 as to "Whether the internal auditor of an assessee, being an individual chartered accountant or a firm of chartered accountants can be appointed as his tax auditor".

The Council decided that an internal auditor of an assessee, whether working with the organisation or independently practising chartered accountant or a firm of chartered accountants, cannot be appointed as his tax auditor