05 September 2024
Can CS and CMA Perform Tax Audits? Understanding the Implications of the New DTC Bill
With the anticipated introduction of the new Direct Tax Code (DTC), there's been a growing discussion around the potential inclusion of Company Secretaries (CS) and Cost and Management Accountants (CMA) as authorized professionals for conducting tax audits. Currently, Chartered Accountants (CA) are the only professionals permitted to perform this function under the Income Tax Act. However, if the new bill includes these changes, it could significantly alter the landscape of tax audits in India.
Key Points: Proposed Changes Under the New DTC: The DTC bill may extend tax audit powers to CS and CMA, broadening the scope for professionals beyond Chartered Accountants. Impact on CAs: The inclusion of CS and CMA could be viewed as a potential dilution of the exclusive rights currently enjoyed by CAs. It is expected that certain sections of the CA community may oppose this move, citing concerns over quality control and the level of expertise required for tax audits. Industry Reactions: There are mixed opinions within the professional ecosystem. Proponents argue that both CS and CMA professionals possess the necessary qualifications and knowledge to handle tax audits effectively. Others, particularly from the CA fraternity, may contest this, emphasizing the need for specialized accounting expertise. Likelihood of Approval: The passage of the DTC with these provisions is uncertain. While the government may push for broader professional inclusion to meet the growing demand for tax audit services, opposition from the CA community and debates on maintaining audit standards could slow down or alter the approval process.
Final Thoughts: What do you think? Will these changes benefit the profession and the economy, or should tax audits remain the domain of Chartered Accountants only?
05 September 2024
As cost audit is with Cost accounts and company secretarial functions are with Company secretary no change is required for tax audit. Let it be with CAs as confirmed by Supreme court of India.
CAclubindia
