ICSI has suggested that the Company Secretaries may be included in the term Accountant and Account Members under the Direct Taxes Code Bill, 2010.
COMPANY SECRETARY MAY BE INCLUDED IN THE DEFINITION OF “ACCOUNTANT” AND “ACCOUNTANT MEMBER” UNDER THE CODE [REFER CLAUSES 314(2), 182(3) AND OTHER APPLICABLE CLAUSES OF THE CODE]
The Institute of Company Secretaries of India is a premier professional body established under an Act of Parliament, i.e., the Company Secretaries Act, 1980. Company Secretary, a competent professional comes in existence after exhaustive exposure provided by the Institute through compulsory coaching, examinations, rigorous training and continuing education programmes, and is governed by the Code of Conduct contained in the Company Secretaries Act, 1980.
We wish to apprise that the curriculum of Company Secretaryship Course includes, inter-alia, detailed study of Direct Taxation, Indirect Taxation and Financial Accounting. Thus, vast exposure is provided to the Company Secretaries in the areas of taxation and accounts, enabling them to acquire proficiency in taxation and other related subjects.
Secretary of a company has been recognized as a principal officer of the company responsible for its affairs under a host of legislations including Companies Act, 1956, Customs Act, 1962, Central Excise Act, 1944, etc. This Code also recognizes Secretary as Principal Officer [vide Clause 314(200)].
The Company Secretaries in Practice have been recognized to act as Authorized Representative before -
a) The Customs, Excise and Service Tax Appellate Tribunal under the Customs Act, 1962 [Clause 146A(2)(d)] read with Customs (Appeals) Rules, 1982 [Rule 9(c)] and The Central Excise Act, 1944 [Clause 35Q (2)(c)] read with Central Excise (Appeals) Rules, 2001[Rule12(c)].
b) Service Tax vide Authority for Advance Ruling (Procedures) Rules, 2003-Rule 2(d)(i)
c) Income-Tax Act, 1961 vide Clause 288(2)(v) read with Rule 50(2A) of the Income Tax Rules,1962
d) Securities Appellate Tribunal vide Clause 15V of the SEBI Act, 1992
e) Central Electricity Regulatory Commission vide the Central Electricity Regulatory Commission (Miscellaneous Provisions) Order, 1999- Explanation to Order No.6(i)
f) Telecom Regulatory Appellate Tribunal vide the Telecom Regulatory Authority of India Act, 1997-Clause 17
g) National Company Law Tribunal vide Clause 10GD
h) Competition Commission of India Competition Act, 2002 – Clause 35(b)
i) Wealth Tax Authorities vide Wealth Tax Rules – Rule 8A(7)
j) State VAT Legislations.
k) Reserve Bank of India – Diligence Report for Banks Vide Circular DBOD No. BP.PC. 46/08.12.001/2008-09
l) SEBI – Internal Audit of Stock Brokers / Trading Members / Clearing members Vide Circular No. MRD/DMS/CIR/-29/2008
Clause 314(2) of the Direct Taxes Code Bill, 2010 define “Accountant” as follows:
“Accountant” –means
(a) a chartered accountant within the meaning of the Chartered Accountants Act, 1949, and
(b) any person who is entitled to act as an auditor of companies under sub-Clause (2) of Clause 226 of the Companies Act, 1956
Clause 182(3) of the Direct Taxes Code Bill, 2010 define “Accountant member” as follows:
“An accountant member shall be a person—
(a) who has for at least fifteen years been in the practice of accountancy as a chartered accountant under the Chartered Accountants Act, 1949; or
(b) who has been a member of the Indian Revenue Service and has held the post of Additional Commissioner of Income-tax or any equivalent or higher post for at least three years”.
The three Institutes, namely, the Institute of Company Secretaries of India (ICSI), the Institute of Chartered Accountants of India (ICAI) and the Institute of Cost and Works Accountants of India (ICWAI) have been constituted under the statutes of Parliament, i.e., the Companies Secretaries Act, 1980, the Chartered Accountants Act, 1949, and The Cost and Works Accountants Act, 1959 to develop and regulate the profession of Company Secretaries, Chartered Accountants and Cost and Works Accountants, respectively. Further, these three Institutes function under the administrative control of the Ministry of Corporate Affairs, Government of India and thus stand on equal footing.
We, therefore, request the Hon’ble Committee to recommend inclusion of –
A) “Company Secretary within the meaning of the Company Secretaries Act, 1980 (Central Act 56 of 1980)” in the definition of “Accountant” and “Accountant Member” so as to give them the same privilege as given to the Chartered Accountants.
B) Specific entry in respect of Company Secretary under Clause 304 (3) on “Appearance by authorized representative” or in other applicable provisions be made to define Authorised Representative specifically.
The proposed amendment will provide the entrepreneurs, specially the SMEs, a wider and cost effective scope for selection of professionals and will be an important initiative towards simplified tax compliance regime.
CAclubindia
