Tax audit is the forte of chartered accountants: ICAI President Nanda

Tax audit is the forte of chartered accountants, Institute of Chartered Accountants of India (ICAI) President Charanjiv Singh Nanda said, amid demands by cost accountants and company secretaries to be included in the definition of accountants in the Income Tax Bill. 

Nanda said that the issue may be taken up by the coordination committee of the Ministry of Corporate Affairs, of which ICAI along with Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI) are a part. 

“We are keen to maintain a healthy relationship with our sister organisations. Audit work can only be done by CAs… We will always emphasise that audit is our forte,” Nanda said.

Calling for its inclusion in the definition of ‘accountant’ as outlined in Section 515(3)(b) of the IT Bill, the ICSI had recently said that the omission is seen as a missed opportunity in recognising the company secretary’s vital role in the financial and compliance landscape of the country.

The new Income Tax Bill is currently being studied by 39 members of ICAI across its regional offices. The members will pass their recommendations to the five-member committee of the Institute. ICAI is expected to share its final recommendations on the Bill with the select committee and the Central Board of Direct Taxes before March 10. The finance ministry had asked the chartered accountants’ body to review the new Bill and suggest improvements.

“We will ensure that the provisions of the bills are rationalised and improved further. There should be no interpretation issue and litigation aspects should be minimised,” ICAI President said.

ICAI has also set up a committee on promoting work-life balance in the lives of practising CAs. Nanda said that ICAI would speak to the government to provide support and handholding to transform Indian firms to become global and serve international clientele.

On the issue of ICAI taking action against audit firms, Nanda said that the institute’s council would take a call on the implementation aspects once the provision is notified by the Ministry of Corporate Affairs.

Nanda also said the institute wants to have healthy relations with the National Financial Reporting Authority (NFRA), but their working has to be respected.

“We want the principle of equity to be followed. We understand the conventions of the country. CAs work on the ground,” Nanda said.

ICAI and NFRA have had differences over certain auditing standards in the past.

Source: Business Standard