Hit hard by the Satyam scam and the damage it dealt to the auditing profession, regulator ICAI is considering a proposal to penalise audit firms while also looking at radical steps like rotation of audit firms every five years, a measure also favoured by the government.
Sources said the ICAI, that governs auditing profession in the country, has taken a serious view of repeated offending firms and is looking at fixing responsibility on them, as is done in countries like the US, Japan and UK.
The pledge to implement GST by 1 April 2010 has been deferred for a later date. Therefore, in this budget, the policy makers may take steps to align the existing indirect tax scheme with the proposed GST structure.
Central Sales Tax would be the biggest impediment for the proposed GST structure. CST being a non-creditable levy stands as a stumbling block in the smooth flow of credit across the supply chain.
Section 153A provides the procedure for completion of assessment where a search is initiated under section 132 or books of account, or other documents or any asset are requisitioned under section 132A after May 31, 2003.
In such cases, the Assessing Officer shall issue notice to such person requiring him to furnish, within such period as may be specified in the notice, return of income in respect of six assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted under section 132 or requisition was made under section 132A.
The Institute of Chartered Accountants of India (ICAI) plans to familiarise its members, especially the partners of small auditing firms, with the best transfer pricing methods to help them take up larger audit assignments involving companies that have overseas businesses.
“Transfer pricing is gaining ground each day. In the years to come, it is going to become far more important.” said ICAI president Amarjit Chopra.
Accounting watchdog Institute of Chartered Accountants of India (ICAI), which regulates auditors, is currently facing the prospect of meeting an income tax penalty of Rs 16 crore, after the Income-Tax department withdrew tax exemptions on the institute.
It is also understood that the I-T department has written to the institute’s banks to freeze the accounting regulator’s accounts till the institute pays the penalty, according to persons familiar with the development.
The Institute of Chartered Accountants of India (ICAI), the apex regulator of accountancy profession in the country, will propose a time line to dispose of the complaints that arise against its members.
The institute had recently recommended disciplinary action against two of its member chartered accountants after they were charged with professional misconduct while conducting the audit of Global Trust Bank for the year 2000-01.
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