Latest news with #InstituteofCharteredAccountantsofIndia
Yahoo
a day ago
- Business
- Yahoo
India's ICAI plans to cap annual tax audits per partner
The Institute of Chartered Accountants of India (ICAI) has disclosed its intention to set a restriction on the number of tax audits a partner may endorse each year. The Economic Times has reported that effective from fiscal year 2027 (FY27), each partner will be limited to a maximum of 60 tax audits. ICAI president Charanjot Singh Nanda mentioned that this initiative seeks to avert the concentration of audit responsibilities among a select few senior partners. The move is also designed to tackle potential anti-competitive behaviours within the accounting industry. The resolution was reached during a council meeting conducted in late May, with new regulations expected to be released soon, according to the publication. At present, while individual chartered accountants can manage up to 60 audits, partnership firms are permitted to conduct audits based on the total limits of all their partners. This current system has resulted in senior partners frequently using the audit quotas of their junior colleagues after reaching their own thresholds. Nevertheless, this cap does not encompass any tasks that stem from specific legal obligations under the Income Tax Act. Nanda told the publication: 'The limit of 60 would be the aggregate limit (under the new guidelines) in respect of all tax audits signed by a member, both in his individual capacity and as a partner of an accounting firm. 'Moreover, a partner of a firm won't be able to sign any tax audit report on behalf of any other partner.' "India's ICAI plans to cap annual tax audits per partner" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Tribune
a day ago
- Business
- Daily Tribune
ICAI Bahrain Chapter Hosts Successful HR Summit 2025
AB The Institute of Chartered Accountants of India (ICAI) Bahrain Chapter successfully hosted its HR Summit on June 18, 2025, at the luxurious Sofitel Bahrain Zallaq Thalassa Sea & Spa. The event, powered by MCA Gulf - Audit, Tax, Consulting & Corporate Services, attracted over 150 professionals, establishing itself as a premier platform for fostering dialogue, networking, and advancing thought leadership in human capital management. The summit featured insightful presentations from distinguished speakers, including Ms. Nouf Al Sowaidi, Group Chief HR Officer at Bapco, and Ms. Jamuna Muralidharan, Partner – HR Advisory at MCA Management Consulting. Their thought-provoking perspectives significantly enriched the discussions, providing attendees with valuable takeaways. ICAI Bahrain Chapter extended its gratitude to its Knowledge Partners, Bahrain Indian Society and iSAW International, for their invaluable support. The success of the summit was also attributed to the enthusiastic engagement and participation of all attendees. Special thanks were conveyed to the annual sponsors, SSPL Middle East and Cube Innovators Technologies LLC, for their continued partnership. A heartfelt appreciation was also given to MCA Gulf for powering the event and playing a crucial role in its remarkable success. The HR Summit 2025 underscored a collective commitment to promoting excellence in leadership, talent development, and innovation across the region's human resources landscape.
Time of India
2 days ago
- Business
- Time of India
Founder of BVG at CA meeting
Pune: Founder and managing director of Bharat Vikas Group (BVG), Hanmantrao Gaikwad, said chartered accountants (CAs) were the real architects of India's economic growth. He said this during the inauguration of Navonmesh 2025, a sub-regional conference of chartered accountants organised by the Institute of Chartered Accountants of India (ICAI). tnn
Time of India
2 days ago
- Business
- Time of India
Big Four, other global firms push back against draft ICAI rules
Mumbai : Top global professional services firms are pushing back against draft guidelines to regulate overseas networks engaged in multi-disciplinary advisory services in India, saying they require excessive disclosures that raise confidentiality concerns and add layers of operational complexity. The Institute of Chartered Accountants of India's ( ICAI ) proposed guidelines also use highly ambiguous terminology that creates uncertainty in interpreting the rules, they said, setting the stage for a fresh standoff with the regulator. ICAI had early this month released draft Guidelines for Overseas Network. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo The move was meant to create a level-playing field, but has ended up throwing up concerns that could hamper working of global accounting firms in India. Vishesh Chandiok, CEO of Grant Thornton Bharat , minced no words in saying that he had hoped that ICAI's attempt would be more balanced towards enablement. 'Unfortunately, it continues to attempt to kill too many birds… I fear the one that will die is the Indian Big4 dream,' he said. Live Events Currently, there are more than 170 global networks operating in India, including the Big Four – EY , Deloitte , PwC and KPMG . One of their key concerns is the draft's sweeping disclosure norms. For example, Form BO requires foreign networks to report all civil, criminal, and disciplinary cases against any partner or CA employee of Indian entities from the past five years. Firms say it adds no value and may force irrelevant disclosures beyond professional competence or network operations. Global professional services firms are also alarmed by the draft's ambiguous disclosure norms, especially the requirement to report turnover on a 'constituent-wise' basis, which could extend to all affiliated firms globally. 'What qualifies as a network? Is it just the Indian firm's arrangement with the global brand, or does it include every associated firm worldwide?' a senior partner at a Big Four firm said. 'The term 'constituents' is vague… If taken literally, it could mean reporting for every firm linked to the brand, regardless of relevance to India.' The guidelines mention regulated, unregulated, and overseas entities but don't define boundaries, raising concerns about their scope. 'The guidelines appear to overreach by seeking control over overseas entities. The entire exercise looks like one of control not enablement,' said the CEO of a major Indian firm associated with a US network. A senior CA noted that the recommendations try to extend ICAI's ethical and operational norms to a network's organisations or divisions that don't come under its ambit, particularly the lucrative and rapidly growing consulting services. This indicates an effort by ICAI to pull these services into its fold, the person said. 'This could disrupt the multidisciplinary firm model by forcing audit firms to build capabilities like IT and valuation independently, raising costs and diluting audit quality,' he added. Perhaps the most problematic aspect for foreign networks is the demand to disclose sensitive financial data of overseas entities. Form DO requires turnover details on a constituent-wise basis, including overseas entities, overlooking how global professional networks work and the confidentiality obligations they have to adhere to, experts said. This could force firms into a regulatory bind, caught between Indian compliance and legal constraints in their home jurisdictions. The rules also demand three years of detailed financial records, showing all money exchanged between Indian and foreign offices. 'Such detailed financial reporting requirements are typically reserved for fully regulated entities, not network arrangements that may be primarily based on brand sharing or quality control coordination,' a partner of a Big Four firm said on condition of anonymity. 'These are independent legal entities. Why would a UK firm (which is part of the same network) disclose its revenue figures to the Indian arm?' On the point of fees paid by Indian firms to global networks, the partner said it's not a typical royalty but a fair payment for real services, like access to global audit methods, technology, and quality systems that help firms do better work. Insiders say fees could range from 4% to 7% of revenues, varying by firm. The draft guidelines also add operational strain on global networks by requiring a nodal officer to take personal responsibility for network-wide compliance – a demand seen as unrealistic. 'One person can't ensure compliance across a global structure. It's burdensome and unclear how it helps,' said a senior partner at another Big Four firm, questioning both the feasibility and value of the proposed role. The guidelines come as the Prime Minister's Office ( PMO ) pushes for the creation of India's own 'Big Four', even as EY, Deloitte, PwC, and KPMG collectively crossed Rs 45,000 crore in India revenue in FY25—with Rajiv Memani-led EY (June year-end) on the verge of becoming the first to reach $2 billion in gross revenues. Nikhil Singhi, managing partner of Singhi & Co Chartered Accountants, said that ideally, the guidelines, code of ethics, and related regulations should prioritise core responsibilities such as audit quality, ethical compliance, and independence over procedural elements like cost disclosures, capital restrictions, constitution of firms and detailed reporting requirements. 'We need a forward-looking approach, one that emphasises greater operational flexibility and simplifies regulation,' he said. The draft also seems to suggest regulating overseas entities that participate in Indian audits, even though current group audit standards already hold the Indian auditor accountable, rendering such provisions redundant. Firms that will lose out most in this exercise are the small and mid-sized Indian firms, experts said. For these firms, access to global networks is crucial, especially with the growing volume of cross-border work coming into India. These global partnerships help them build capacity and improve quality and these guidelines will create substantial hurdles. 'We're left asking, what is the real purpose of these guidelines?' said the unnamed CEO quoted above. 'No other jurisdiction has anything similar. The intent is unclear, and the practical effect may be to discourage even mid-sized firms from entering network arrangements.' ICAI has invited comments and suggestions on the draft rules proposed by its Committee for Aggregation of CA Firms (CACAF) from all stakeholders latest by June 27.
Time of India
3 days ago
- Business
- Time of India
ICAI panel may wrap up review of IndusInd, Gensol books in 6 months
A key panel of the Institute of Chartered Accountants of India (ICAI) could wrap up its review of the books of crisis-ridden Gensol Engineering and IndusInd Bank in about six months, institute's president Charanjot Singh Nanda said Wednesday. While Gensol is facing allegations of fraud, the crisis at IndusInd Bank pertains to discrepancies in its forex derivative portfolio. Usually, if the ICAI's Financial Reporting Review Board (FRRB) concludes that the financial statements of the entities that are being reviewed are "not true and fair", it refers the matters to the institute's disciplinary committee for subsequent action against the auditors concerned. Nanda was announcing the Global Capability Centres summit series being hosted by the institute on June 27-28 in NCR. This summit will be organised in Ahmedabad, Mumbai and Hyderabad between August 2025 and February 2026. Nanda said ICAI, along with capital markets regulator Sebi and the National Stock Exchange, is working towards devising a framework to detect potential fraud or lapses in listed companies early. As for the government move to facilitate the creation of large home-grown accounting and advisory firms comparable to the 'Big Four', Nanda said this could be realised through tie-ups of Indian firms with the global companies and through merger of some domestic firms.
