shushantsinghal (BCOM(HONS),C.A) (283 Points)
27 March 2010HIII
I WANT TO ASK SUPPOSE A CHARTERED ACCOUNTANT FATHER IS HAVING A PVT LTD COMPANY......CAN HIS SON WHO IS PRACTISING C.A CAN BE DIRECTOR IN SUCH COMPANY.......IF HE IS NOT A PRATICING C.A CAN HE ABLE TO DONE A TAX AUDIT THERE.......i.e any disqulafication attract to him or not....
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 27 March 2010
If He is Not Practising CA, Then How He Can Able to Do Tax Audit....
& Regarding First One, He May Be Director ....in His Father Pvt Co.
krishna kumar
(CA Final)
(407 Points)
Replied 27 March 2010
he can be a director.
only practising CA could do Tax Audit.
as the firm is owned by his father, he should not audit the same. it is being professional misconduct.
shushantsinghal
(BCOM(HONS),C.A)
(283 Points)
Replied 27 March 2010
if he is pratcing c.a & director in his father company then he can do tax audit or not......
shushantsinghal
(BCOM(HONS),C.A)
(283 Points)
Replied 27 March 2010
sorry since he his not praticing then by no mean of doing tax audit....wrongly posted
Max Payne
(employed)
(2574 Points)
Replied 27 March 2010
Please see the guidance note on independece of auditors issued by ICAI.
https://www.ksaiyar.com/nl.php?nlblogid=174
If he is the director of the company, where is his independence?
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 27 March 2010
Firstly only a COP holding C.A. may tax audit. And able to be a director of the company but then he cann't appoint for an auditor of the company as per sec 226.
The disqualification as per sec 226 is -
1. A body corporate
2. An officer or employee of the company
3. A person who is a partner of an officer or employee of the company
4. a person who is an employee of any officer or employee of the company
and A person holding any security of the company. security means any instrument, which carries voting rights.
and many more disqualification are available in sec 226
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 27 March 2010
A CA Being a director in a company can't do audit coz it will affect independence of auditor.
regards,
ratan
ganesh bhandari
(B.Com Final C.A. Final CS Article Clerk )
(239 Points)
Replied 27 March 2010
The son can be the Director in the Company but not the Tax Auditor even if a Practising CA
Prasanth Nair V
(ACA,ACS,CWA Final,Mcom)
(557 Points)
Replied 27 March 2010
Hai,
1. A Practising Chartered Accountant cannot become a Whole Time Director in any company, as he should not be in whole time employment elsewhere. He can become a part time director anywhere, even father's company
2. A Non practising chartered Accountant Can act as a director in any company (any kind of Directorship), but cannot Perform Tax Audits...
Nitin Singhal
(Gaining knowledge...)
(320 Points)
Replied 27 March 2010
Yeah, Son can become director in a company in which his father is a director.
But he cannot do TAX audit unless he is practising CA
Sanjay Singh Rana
(CA)
(208 Points)
Replied 27 March 2010
| Originally posted by : Prasanth Nair V | ||
 |
Hai, 1. A Practising Chartered Accountant cannot become a Whole Time Director in any company, as he should not be in whole time employment elsewhere. He can become a part time director anywhere, even father's company 2. A Non practising chartered Accountant Can act as a director in any company (any kind of Directorship), but cannot Perform Tax Audits... |
 |
hi prasanth can u tell under which section or clause it is given
thanks dude :)
CAclubindia
