Press Trust of India / New Delhi May 15, 2009, 18:51 IST
Accounting regulator ICAI today issued a clarification saying that internal auditors appointed as tax auditors can continue to do their work if their selection for the job took place before December 12 last year.
The Institute of Chartered Accountants of India decided that with effect from December 12 last year internal auditors cannot be appointed as tax auditors, but after several representations from assessees about their problems with this new rule, the institute decided to relax it.
As per the decision an internal auditor cannot carry out tax audit on or after December 12.
"Subsequently representations have been received pointing out the hardships being caused by the decision in respect of those internal auditors who have been appointed as tax auditors for the financial 2008-09 on or before December 12,2008," the ICAI said in a statement released today.
Keeping this hardship in mind, the institute decided that the decision will apply to appointments made on or after December 12, so internal auditors appointed as tax auditors of a company can do the job for the year ended March 31 2009.
The accounting regulator in its council meeting last year in October had decided that the internal auditor of an assessee, whether working with the organisation or independently, cannot be appointed as tax auditor.
Dear sir/madam,
can u let me know the time limit for company to submit the records,cost statements etc to cost auditor for conduting his audit.
some places I am finding it as 90days and in some it is 135days.
plz let me know which is correct.
To
The Editor,
Please desist from describing ICAI as Accounting regulator. ICAI regulates only Chartered Accountancy regulation for financial audits. It can only frame Accounting Standards which need to be approved by NACAS and on these lines, you cannot come to conclude that ICAI is an accounting regualator. Moreover, there is another Statutory institute established by Indian Parliament - namely ICWAI - which regulates Cost accountancy profession and also issues COST ACCOUNTING STANDARDS.
Therefore, please desist from desribing ICAI as Accounting regulator in your future columns - which gives a misleading direction that only ICAI regulates Accounting profession in India which totally ignores the fact that ICAI regulates only financial accounting WHEREAS it has no jurisidiction in cost accounting.
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