ICAI seeks more accountability, transparency in defence sector
February, 06th 2017
Institute of Chartered Accountants of India (ICAI) has recommended separate financial services in the defence sector to bring more financial discipline and transparency.
Chartered accountant M Devaraja Reddy, president, Institute of Chartered Accountants of India said, "We are a facilitator, helper and conveyor to the government and businessmen. We are advising the government to set in place a system of double accounting in defence. A separate financial service should be introduced in defense for more financial discipline and transparency."
Reddy said the aim of ICAI is to advise the government from time to time and help make citizen-friendly policies.
On the Goods and Services Tax (GST), ICAI feels that the implementation of a new tax regime will bring uniformity to law, boost business and reduce corruption.
Reddy said, "There is a grey market for every product. With the implementation of GST, the compliance of law will become very easy."
He added that GST will bring uniformity to law and boost business growth. According to ICAI, small scale industries will have to gear up for the new tax regime. CA Nilesh S Vikamsey said GST will bring more work to chartered accountants.
ICAI has given suggestions to the government on GST and has pointed out loop holes in the proposed law.
ICAI has welcomed the government's proposal to lower the tax rate to 25 per cent for small and medium-sized enterprises.
The corporate tax rate for Medium and Small Enterprises, with an annual turnover of upto Rs.50 crore, is proposed to be reduced to 25 per cent from 30 per cent.
The institute said that the reduction in corporate tax rate for MSMEs is expected to benefit 96 per cent of companies. This would leave more money in their hands for working capital.
On demonetisation, liquidity crunch happened because of collusion of middle management of banks and unsocial elements but now things are getting back to normal.