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: empanelment :: TDS :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: cpt :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment
 
 
News Headlines »
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj
 Why seeing Form 26AS is a must before filing tax return and how to access it

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 2017 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