Direct Taxes Code Bill 2013 proposes to change the definition of “Accountant” to include ‘Other Professionals’
The Direct Taxes Code Bill, 2013 has proposed to widen the scope of the definition “Accountant” to include other professionals as well, like company secretaries, cost accountants or as may be prescribed by the CBDT. This is in gross violation of the fact that various provisions in the Income-tax Act, 1961 under which chartered accountants have been given the responsibilities to undertake audit and certification of accounts of various entities have the backing of “audit” of the relevant accounts which is the exclusive domain of Chartered Accountants.
ICAI and CA professionals should be aware that the proposed change is a cause of major concern to the entire profession. Although the ICAI has made a representation to Ministry of Finance, placing on record its concerns. ICAI has emphasized on the fact that there is a very significant difference in the area of expertise of other professionals vis-a-vis Chartered Accountants.
Issuance of audit certificates by persons having limited knowledge of audit of accounts will not only be professionally incorrect but also will raise many concerns including causing huge revenue leakages for the Government. ICAI should take requisite measures to save the profession and the national interests.