Logic behind incr. tax audit limit to rs 100 lacs by f.m
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 March 2012
Dear readers, experts
Can any one please clarify the reason for increase of tax audit limit from Rs 60 Lacs to Rs l00 Lacs. In just 2 years the limit was increased from 40 Lacs to 100 Lacs which was intact from some decades.
Whats the ICAI doing in these regard?. In one side our presidents are saying that there is bright future of the current C.A in practice & on the other side the work is all most gone, now bank audit also gone away.
So what left with the new chartered accountants, the ICAI must seriously think over the matter.
Can any one please clarify the reason for increase of tax audit limit from Rs 60 Lacs to Rs l00 Lacs. In just 2 years the limit was increased from 40 Lacs to 100 Lacs which was intact from some decades.
Whats the ICAI doing in these regard?. In one side our presidents are saying that there is bright future of the current C.A in practice & on the other side the work is all most gone, now bank audit also gone away.
So what left with the new chartered accountants, the ICAI must seriously think over the matter.
19 March 2012
Please think like CA.
Not only 44AB Tax audit limit is increased but also 44AD limit is increased hence all the assessee who are not coming under the 44AB are not ready to go and declare more than 8% as a taxable income.(in 44AD only some assessee will not get the benefit).
and in respect of bank audit Concerned authorities will take action on that issue.
Not only 44AB Tax audit limit is increased but also 44AD limit is increased hence all the assessee who are not coming under the 44AB are not ready to go and declare more than 8% as a taxable income.(in 44AD only some assessee will not get the benefit).
and in respect of bank audit Concerned authorities will take action on that issue.
19 March 2012
New avenues has to be searched out. No way out.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 March 2012
I agree that we have to find out some other opportunities.
But as i got a reply from one client that "sir, instead to pay audit fees we are happy to pay tax to the Govt. as it will create good tax payer image & also generate higher capital". "further there are lots of compliance in tax audit so this amendment is very much beneficial to us"
So what you ppl comment on this client reply?
Please comment,
But as i got a reply from one client that "sir, instead to pay audit fees we are happy to pay tax to the Govt. as it will create good tax payer image & also generate higher capital". "further there are lots of compliance in tax audit so this amendment is very much beneficial to us"
So what you ppl comment on this client reply?
Please comment,
20 March 2012
Your client is wrong. If you got your financial statement audited at the cost of paying income tax then the client is in a advantgeous position because firstly audited statements carry more value , secondly he is getting services from CA without additional cost, thirdly if there is any survey or search in future then the audited statements are very useful, fourthly for bank , financial institution, sales tax, court cases he need not have to pay extra money for certification of statements. In case of 44AD even if the assessee pays the tax his real income is always questionable by the department.
20 March 2012
Agree with the words of Ratan Sharma
Addition to that i want to mention to your client that our govt. not using the public money properly. hence there is no use in paying huge tax.
Addition to that i want to mention to your client that our govt. not using the public money properly. hence there is no use in paying huge tax.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 March 2012
I also in totality agree with Mr. Ratan Sharma but we can only suggest the client about the possible outcomes of non audit but at the same time the fact it that we are loosing our business whatever due to ignorance of the client.
We cant force them to go for tax audit. This will certainly pollute the professional work environment especially in new CA as they have to cope with competition & there are chances that they will more reduce the audit fees & finally the quality of audit compromise....
We cant force them to go for tax audit. This will certainly pollute the professional work environment especially in new CA as they have to cope with competition & there are chances that they will more reduce the audit fees & finally the quality of audit compromise....
20 March 2012
As regards the enhancement of limit of Tax audit the Fiance Minister was kind enough with CA as this demand was raised since last so many years and the finance minister has gradually increased the limit.
As regards Audit Fee. If you look to a Balance Sheet and P & L A/c then you will find which is the least amount of expenses? Yes it is Audit Fee and all other expenses are more than it.
Why this limit is increased? Many A.O. have also complained that the quality of Tax Audit conducted are not proper and does not help the department in any way as it is stereo type reporting and none of the C.A try to give their best. So it is my request that we should be honest to our profession and try to give our best so that the limit is not increased further.
Now on the audit fee which is saved by the client due to increase in TO limit the Government shall be gaining 30.9% as additional tax but loss to many CA whose bread and butter was TAX Audit or they formed the firm just for TAX Audit.
Anyhow this is our bad luck that our ICAI could not place our cards properly before the FM to protect the interest of CA and therefore, we have to generate new line of professional opportunities. This decrease in Turnover may affect many small and medium size firms how they will cope with their expenses is a matter of great concern and worries. We have to wait and watch. I do not think that in one year more opportunities will be developed by ICAI as if you see the present passing percentage of students there will be a flood and many CAs will leave the practice and go for jobs as they will have no other opportunities. Once you are in practice it is also very difficult to take up a job as you have to work under someone which means a boss has become an employee.
At the end I must congratulate the author for raising this question on this platform but this is not enough we have to take it further so that our interest is protected
As regards Audit Fee. If you look to a Balance Sheet and P & L A/c then you will find which is the least amount of expenses? Yes it is Audit Fee and all other expenses are more than it.
Why this limit is increased? Many A.O. have also complained that the quality of Tax Audit conducted are not proper and does not help the department in any way as it is stereo type reporting and none of the C.A try to give their best. So it is my request that we should be honest to our profession and try to give our best so that the limit is not increased further.
Now on the audit fee which is saved by the client due to increase in TO limit the Government shall be gaining 30.9% as additional tax but loss to many CA whose bread and butter was TAX Audit or they formed the firm just for TAX Audit.
Anyhow this is our bad luck that our ICAI could not place our cards properly before the FM to protect the interest of CA and therefore, we have to generate new line of professional opportunities. This decrease in Turnover may affect many small and medium size firms how they will cope with their expenses is a matter of great concern and worries. We have to wait and watch. I do not think that in one year more opportunities will be developed by ICAI as if you see the present passing percentage of students there will be a flood and many CAs will leave the practice and go for jobs as they will have no other opportunities. Once you are in practice it is also very difficult to take up a job as you have to work under someone which means a boss has become an employee.
At the end I must congratulate the author for raising this question on this platform but this is not enough we have to take it further so that our interest is protected
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Querist : Anonymous
Querist :
Anonymous
(Querist)
21 March 2012
Dear Sir S.S Agrawal
Now what i feel new CA will face much more competition for getting work & there is great chance that they will lower the fees (which at present itself on very low side) & finally deteriorate the audit quality.
Can't understand why ICAI don't take these questions with the RBI/F.M (CONGRESS KA HAAATH CA's KO MAAR)
Worst people are heading our ICAI which are compromising the dignity & respect for the C.A.
Those days will come soon when "CA's will be treated like ADVOCATES of court"
Now what i feel new CA will face much more competition for getting work & there is great chance that they will lower the fees (which at present itself on very low side) & finally deteriorate the audit quality.
Can't understand why ICAI don't take these questions with the RBI/F.M (CONGRESS KA HAAATH CA's KO MAAR)
Worst people are heading our ICAI which are compromising the dignity & respect for the C.A.
Those days will come soon when "CA's will be treated like ADVOCATES of court"
21 March 2012
Dear author,
Do not worry those days are very near as you can find the offices of CA in each and every corner of all the cities just like Pab Biri shop. No doubt Indian C.A are the best in the world and they are very much preferred by countries other than India and are paid very nicely. The only problem is with the people who are in practice. Now, a days the young generation wants quick money for that they can go to any extant which is not correct. This should be understood by the upcoming CA.
As regards the holding of post at ICAI, Delhi it is we who have voted for them without considering their past and accordingly they are taking up post for their personal benefit and not for masses. WE ARE DEFAULT AND WE ARE TO BE BLAMED FOR THIS.
Do not worry those days are very near as you can find the offices of CA in each and every corner of all the cities just like Pab Biri shop. No doubt Indian C.A are the best in the world and they are very much preferred by countries other than India and are paid very nicely. The only problem is with the people who are in practice. Now, a days the young generation wants quick money for that they can go to any extant which is not correct. This should be understood by the upcoming CA.
As regards the holding of post at ICAI, Delhi it is we who have voted for them without considering their past and accordingly they are taking up post for their personal benefit and not for masses. WE ARE DEFAULT AND WE ARE TO BE BLAMED FOR THIS.
Message likes :
1 times
21 March 2012
I agree with CA Agarwalji. The new generation wants quick and easy money. They dont understand how difficult to survive in practice. The new CA's are under impression that as soon as they got the degree they should get minimum package of Rs. 5 lac plus. I just come across such instance when a newly qualified CA told me " OK sir you just give me 5 lac package at first year then we will discuss next year". He don't understand that Bank Audit has gone, limit 44AB enhanced, new CA are coming into practice. How difficult to earn additional Rs. 5 lac in a year in current situation. The flow of new entrants is also increasing.
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