Certification

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Devendra (Querist)

06 March 2012 Mr. X a proprietor wants to open a Bank A/c but the bank is demanding a Certificate from the proprietor from a CA saying that there was no business income during the current year and the proprietor will be maintaining regular books of a/cs and also will be filing the ITR. But now the CA is asking for a proof that there is no income earned during the year. Now here comes my question, for the proof can the CA accept a declaration from the proprietor that there was no business income earned during the year on a letter head of the proprietor?

Guest

Guest (Expert)

06 March 2012 How can a CA issue such certificate. It might prove risky for signatory CA.

Guest

Guest (Expert)

06 March 2012 How can a CA issue such certificate. It might prove risky for signatory CA.

Krishna Mohan

Krishna Mohan (Expert)

07 March 2012 CA certificate can be issued only on the facts and cannot be issued on the future happenings. He cannot guarantee that the client will be maintaining books of accounts and will be filing his ITR. BTW, i don't understand why the bank ask this certificate. In normal cases, bank asks CA certificate about the geniality of the proprietor and this is part of their KYC process. This CA cert. can be asked by the banker only if the proprietor does not have any proofs as mandated by KYC.

Guest

Guest (Expert)

07 March 2012 Agree with Mr. Krishna

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