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ICAI sub-group to tackle tax audit ceiling issue
September, 12th 2006
The Central Council of the Institute of Chartered Accountants of India (ICAI) has referred the issue of ceiling on tax audit assignments that could be undertaken by a chartered accountant to a "sub-group" of the council. Currently, the ceiling has been pegged at 30 tax audit assignments for every chartered accountant. This ceiling came up for review at the council meeting held in Mangalore from September 6-8. "We have referred the tax audit issue to a sub-group," said Mr T.N. Manoharan, ICAI President. The ICAI President had recently made it clear that there was no proposal to do away with the practice of having a ceiling. ICAI had placed the ceiling on tax audit assignments to ensure that a certain minimum quality of the profession is maintained. But over the years, the institute has been forced to factor in issues such as inflation and its impact on the members. Enterprises with annual turnover of over Rs 40 lakh are required to go in for a tax audit.
 
 
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