Nagpur: The Income Tax Act, 1961 has given the exclusive responsibility of Tax Audit to Chartered Accountants. A detailed report in the prescribed format is required to upload before the due date. It is very important to be aware of the various clauses under which the report needs to be submitted. There have been various changes like the Income Computation & Disclosure Standards which needs proper understanding, interpretation as well as reporting.
The Tax Audit is beneficial in brining financial discipline specially in the organized sector and has played a crucial role in increasing the Tax Collection said CA. Kailash Jogani, Past Chairman of Nagpur Branch of ICAI and President of NAGPUR chamber of Commerce. He was speaking as a Chief Guest in Half Day Seminar on Tax Audit organized by Nagpur Branch of ICAI. Under the present scenario while doing Tax Audit, apart from the knowledge of Income Tax Act a Chartered Accountant should be aware and updated about the various laws like Prevention of Money Laundering Act, Benami Transaction Act, Goods & Service Tax , VAT, Labor Laws, etc.
Understanding these laws and getting updated is expected from a Tax Auditor for conducting the Audit in smooth and effective manner. Under such scenario a major responsibility is entrusted upon Chartered Accountants in the form of Income Tax Audit. The auditor should focus on documentation as well while conducting the Audit which is again a very important requirement. Also, in case of non compliance proper qualification should be given for which necessary working as well as documentation should be done. It is equally important to explain the provisions to the Assessee so that they should be aware of the related provisions enabling them to comply the same effectively. The numbers of cases selected for scruitiny are reduced to almost 1% for which major credit should be given to the Income Tax Audit conducted effectively by the Chartered Accountants.
Earlier, Chairman of Nagpur Branch of ICAI, CA. Sandeep Jotwani in his welcome address expressed that the coming days will be full of compliances where there are multiple due dates for GST, Company Law and also Income Tax Audit. Under such scenario Chartered Accountants will be busy in getting the compliances done and also in understanding the various day to day developments in laws. Apart from compliance, Chartered Accountant have to play a major role in explaining the clients about the various expectations with regard to legal compliances. The month will be very challenging because of multiple tasks to be done in the month full of festivals.
Inspite of all challenges we need to work hard and fulfill the entrusted responsibilities without any compromise. He assured that Institute will be organizing regular programs to update the members about the various developments from time to time so that there should not be any issue with regard to interpretation and its compliance.
CA. Ajit Pimperkhede, Senior Chartered Accountant deliberated on clauses under the Tax Audit Report whereas CA. Sunil Kumar Hirani from Betul spoke on Documentation and Practical Issues under Tax Audit.
CA. Swapnil Ghate, Immediate Past Chairman of the Branch co-ordinated the program whereas CA. Suren Duragkar, Secretary of the branch proposed formal vote of thanks.
Prominently present on the occasion were CA. Umang Agrawal, CA. Ghanshyam Jogani, CA. Paresh Tiwari, CA. Paresh Tank and members in large numbers.