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Members partnership requirement

Hitesh Chauhan (Proprietor) (62 Points)

05 September 2011

CAN CHARTERED ACCOUNT SIGN TAX AUDIT REPORT OF ENTITY IN WHICH HIS PARTNER IS DIRECTOR ? PLEASE REPLY WITH CASE IF ANY?

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3 Replies

Nitin Garg (CA FINAL Article Trainee B.com) (171 Points)
Replied 05 September 2011

No, as per guidance note on tax audit(issued by ICAI),

=>Tax consultants may be tax auditor.

=>CA writing / maintaining books of the assessee/any partner of such CA / the firm in whom such CA is a partner should not accept tax audit assignment.

=>If a relative of a director is appointed as tax auditor of a company, such appointment attracts the provisions of S. 314 of the Companies Act. This is because tax auditor is an ‘office of profit’ for the purposes of S. 314.

=>If a CA gives a tax audit report for a concern in which he or his relatives is substantially interested, the interest must be disclosed in his report.

=>Tax audit of a firm of CAs cannot be done by any partner / employee of the firm

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JAI D. JOSHI (PROPRIETOR) (22 Points)
Replied 10 October 2011

I AM A C.A. IN PRACTICE IN INDORE HAVING 16 YEARS EXPERIENCE IN PRACTICE. I WANT TO ESTABLISH A BRANCH IN MUMBAI,WHERE ALL INFRASTRUCTURE WILL BE SET UP BY ME . I WANT A C.A. EITHER FRESH OR EXPERIENCED WHO WILL TAKE CARE ALL BRANCH OPERATIONS WITH THE HELP OF STAFF. ASSOCIATION WILL BE EITHER ON JOB BASIS OR PARTNERSHIP BASIS. PRACTICE FIELD WILL BE AUDIT, INCOME TAX, FINANCE.