Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India :: TDS :: empanelment :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act

ICAI raises gear against KPMG, E&Y
November, 03rd 2010

Global firms KPMG and Ernst & Young could be headed for trouble in India as auditing regulator Institute of Chartered Accountants of India (ICAI) has found them doing business through surrogate means, without being registered in the country.

ICAI has questioned the modus operandi of these accounting firms. According to ICAI, these foreign auditing companies operate through their member-firms in India. While S R Batliboi is the member-firm of E&Y in India , BSR & Company is the member-firm of KPMG.

ICAI president Amarjit Chopra told TOI that the institute has taken a serious view of firms carrying out business in a surrogate manner even though they remained unregistered here. "We want action taken against them and we have approached the government . They should not be allowed to do business in India through surrogate means and without registration."

Explaining the modus operandi of these firms, Chopra said that while auditing reports are signed on behalf of member-firms , the business is usually taken on behalf of the foreign firm. "This should not be allowed. Moreover, in case of any lapse, we cannot take any action against the parent firm as it is not registered with us and does not take up business directly."

When contacted by TOI for a response, both E&Y and KPMG refused to comment. However, K N Memani, former chairman and country managing partner for Ernst & Young, termed ICAI's contention as "without merit" and said the regulatory body was against the Big 4KPMG , E&Y , Deloitte and Price Waterhouse . "There is nothing illegal about the way E&Y is working in India. There is no violation of any rule.

The ICAI Council is bent upon destroying the Big 4 and that is why they find faults. This is very strange," Memani said, adding these were his personal views. Memani, also a former chairman of government-appointed Quality Review Board (QRB) from where he resigned in early 2009, said E&Y was not doing any surrogate work in India.

"They do not do any audit, but only consulting, and thus are not members of ICAI. In any case, E&Y is within its right to have a member-firm and thus there is nothing illegal about S R Batliboi."

Chopra alleged that Indian firms were losing auditing work as foreign firms entering India were insisting on hiring the Big 4 as auditors.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions