LETTER FROM THE PRESIDENT OF ICAI CA G.RAMASWAMY

As per a letter (copy enclosed) received from the ICAI President, your suggestions (copy enclosed) sent as " PRE- BUDGET  MEMORANDA"  to ICAI's  Central Direct Taxes & Indirect Taxes Committee have been given due consideration by the committee. Out of the FOUR suggestions THREE ( ISSUE No: 2, 3 & 4) have been accepted by ICAI in toto. Matter has been represented by ICAI before  the CBDT. CBDT has assured  implementation of these suggestions.

Applauds  for  your  efforts  and  show  of  unity.

However, don't stop here. The major issue of Centralised Allotment of Tax and other audit assignments is still pending.

I assure all of you that the issue of Centralised Allotment of Tax and other audit assignments will also be given due consideration by the ICAI in near future. The only need is to remain UNITED and have patience. India was not free overnight. This issue is very crucial . It will change the very meaning of CA.

Please remain united. UNITED WE RISE DIVIDED WE FALL. You and only you can do it.

Come on the common platform created for this purpose. JOIN Awakened CAs Group ( yahoo Groups) show your UNITY.

 

For joining the group , please visit group site in yahoo groups or send a BLANK Email  

 

at

 

Awakenedcas-subscribe@ yahoogroups.co.in

 

and follow the next instructions to join.( to be sent by Yahoo Customer Care ! )

 

 

Provide your NAME, ADDRESS, M. NO:, EMAIL,  MOBILE  NO: in the relevent box for approval of the requests to join.

 

Also concentrate on the VOTING at www.icai.org.in. Your voting in large numbers, in favour of the issue will ensure its early implementation.

Please spread the message of voting to all your CA colleagues.

Thanks a lot for your Cooperation.         

CA M.S.BHATIA

JALANDHAR

PUNJAB

(09855209344)

 

LETTER  FROM THE PRESIDENT OF ICAI  CA G.RAMASWAMY

Dear Professional Colleague,

As you must be aware, recently the ICAI had represented before Central Board of Direct Taxes (CBDT) seeking tax audit data based on returns e-filed during the year 2010-11. I would like to inform you that in response to the representation made to CBDT, the ICAI has been provided with the data relating to number of tax audits conducted by the members along with the membership numbers of the tax auditors.

As per the data provided, the total number of tax audit returns filed in respect of the financial year 2010-11 was 16, 16,096 which were conducted by 59,472 auditors. The data so provided is being further processed with regard to fake membership numbers, membership numbers which exceeded the specified number (ceiling) of tax audit assignments, etc. 

In order to prevent misuse of membership numbers of tax auditors, we have been given assurance that from next year onwards the uploading of tax audit report along with digital signatures would be made mandatory.

Further, the ICAI has also suggested that on the basis of data of practicing Chartered Accountants provided by ICAI, a user id and a password may be made available to all practicing members so that they can view all the tax audit reports uploaded in their name, which in turn would further curb the malpractice of misusing the details of member by the assessee. A tax audit not done by the member may be then reported by him to the Income-tax Department for the action at its end.

The said suggestion found favor with the Department which has assured that the idea would be taken forward for further consideration. I would also request you to kindly provide your valuable suggestion(s) to curb the malpractices being followed further in this regard.

As regards the data being processed, we would keep you posted.


Warm Regards,

CA. G. Ramaswamy
President
The  Institute  of  Chartered Accountants  of  India

 

PRE-BUDGET SUGGESTIONS SENT BY ALL OF YOU TO ICAI

 

To

The Chairman,

The Central Direct Taxes & Indirect Taxes Committee,

Institute of  Chartered Accountants  Of  India ,

New Delhi.

 

            SUB:- SUGGESTIONS FOR PRE-BUDGET MEMORANDA ON DIRECT TAXES -2012

Dear Sir,

            I hereby make following suggestions relating to POLICY matters and PROCEDURAL matters :-

 

ISSUE No: 1

 

ISSUE :  INDEPENDENCE  , INTEGRITY AND EXCELLENCE are integral parts of an AUDIT function. But while doing TAX AUDITS u/s 44AB of the Income Tax Act, 1961 ,  an auditor   never feels to be an independent as the  appointment is made by the CLIENT . Auditor is also  dependent on the client for fee too . In such a situation Auditor cannot work with the EXELLENCE he/she is  expected to put in the Audit  work,  being done on behalf of the Income Tax department.

 

SUGGESTION : Allotment of TAX AUDIT should be made by some Independent Agency in consultation with ICAI and Income Tax Department. Every Assessee liable to get his accounts audited to inform Income Tax Department by making a DECLARATION that he is required to get his/her accounts audited u/s 44AB , within 30 days from the end of the Financial Year.

 

RATIONALE  : 

a) This will ensure  INDEPENDENCE  , INGERITY and EXCELLENCE in the audit work. Which may further lead to INCREASE in TAX REVENUES due to better vigil by Auditors.

b) The job assigned by Income Tax Department can only be justified, if Tax Audit is allotted by some Independent Agency, without any interference of the Assessee.

 

ISSUE NO.2

 

ISSUE : Name of the CA firms being  used, by some professionals (NON-CA), fraudulently in the Income Tax Returns without their knowledge resulting in Fake Tax Audits. This defeats      the very purpose of the TAX AUDITS

           

SUGGESTION : The income Tax return of the Auditee should be digitally signed by both the Auditee and Auditor.

 

RATIONALE :  This will help in restricting the fraudulent use of CA firm's name.

 

ISSUE NO: 3

 

ISSUE : Income Tax Returns being  uploaded by some professionals even without conducting the          audits  before the due date.

           

SUGGESTION : The scanned copy of Audit Report in the PDF format should be uploaded along with the return of income tax,  just as in the case of Annual Return being uploaded on the MCA site.

 

RATIONALE :  This will ensure that a proper audit has been conducted and TAX AUDIT report has  been obtained by the Auditee before the due date of return.

 

ISSUE NO: 4

           

ISSUE : Audits being conducted by CAs in excess of the prescribed limit of 45 Tax Audits.

 

SUGGESTION :  Facility on NSDL site,  should be provided , whereby every CA can see the number of TAX Audits conducted in his name, by putting in his membership no: and password. The ICAI may also be provided same facility to see the number of TAX AUDITS conducted by each CA.

 

RATIONALE : This will help in  monitoring the TAX AUDIT limit of 45 tax Audits, effectively. This is necessary to ensure QUALITY in Audit work.

 

Above suggestions , if implemented, will go along a way in uplifting the image of the profession.

 

Thanking You.

 

Yours Sincerely,

 

Name :

Membership No:

CITY: