22 chartered accountants have issued more than 400 tax audit report for AY 2013-2014

As per the recent Report No 32 of 2014 (Performance Audit) of CAG, 22 chartered accountants have done more than 400 tax audits for assessment year 2013-2014 instead of the present limit of 45 tax audits. Out of the list one chartered accountant has done 2471 tax audits for the assessment year 2013-2014.

To maintain quality of tax audit conducted by chartered accountants, ICAI has issued guidelines. Such guideline prescribed a limit of 45 tax audit assignments that can be under taken by a chartered accountant in a financial year under section 44AB of Income tax act, 1961.

In case of a firm, such specified number of tax audit limit shall be applicable for every partners of the firm.

chartered accountants have issued more than 400 tax audit report for AY 2013-2014

Recently, ICAI has raised the limit of tax audit assignments from 45 to 60 to be made effective from audits conducted during financial year 2014-2015.

CAG report says “As per the information provided by DGIT (Systems) of ITD (August 2014), 65898 CAs submitted at least one TAX for AY 2013-2014. Out of total 65898 records of CAs, 81.13 per cent of CAs adhered to the limit prescribed by ICAI. Remaining 18.87 per cent of CAs (12435 CAs) submitted more than 45 TARs”

Here is a table as in CAG report which shows stratification of the total number of tax audit report (TARs) issued by CAs and its percentage;

Range of Tax Audit Reports issued Total Number of Accountants Percentage of Total Accountants
1-45 53463 81.13
46-100 10838 16.45
101-200 1364 2.07
201-300 166 0.25
301-400 45 0.07
401-500 10 0.02
501-1000 11 0.02
>1000 1 0

Another table showing top 22 chartered accountants who issued more than 45 TARs for AY 2013-2014

Chartered Accountants Membership Number Number of TARs
Pralay Chakraborty 059736 2471
Partha Pratim Mukhopadhyay 056366 990
R Muralidharan 024060 796
Rajesh Kumar Gupta 074194 640
Swapan Acharyya 062815 638
D Sundararajan 010150 619
B C Vadivel 206700 612
Raj Hans 087767 586
Samir Pushpvadan Gandhi 039251 551
Navin Agarwal 078175 522
Poulose Shaji 022909 513
A Kulathooran Pillai 018792 510
Sukdeb Halder 051185 494
Chetan Premchand Shah 031239 487
P Ramalingam 019516 478
Arun Kumar 097929 461
S Vairavanathan 004736 457
Radhakanta Das 062863 428
Suresh Kumar Goyal 084153 417
Hetal Bhailalbhai Dhamelia 119864 415
TS Ventakaraman Lakshmi 022214 414
Jai Bhagwan Mittal 084512 401

Report further stated that “the information available with DGIT (system) has not been shared by ITD to ICAI nor did ICAI approach ever to ITD to furnish such information. In view of lack of monitoring of number of tax audit assignments either by ITD or ICAI, the purpose of maintaining the quality of tax audit have suffered. As the work of tax audit assignments is voluminous work, issuing more than prescribed TARs is fraught to suffer in quality”

“in the interest of revenue, the Act should have to prescribe for quality of tax audit assignments rather than relying on ICAI. Therefore, ITD may consider making suitable provision in the Act by restricting number of tax audit assignments in consultation with ICAI. In an automated environment of e-filing by CAs, prescribed limit can be adhered by providing suitable controls”

Link to access complete report

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