A task force on Direct Tax Code regulation has not favoured any “accountant” status to cost accountants and company secretaries, a senior official told ETCFO on the request of anonymity.

The committee set up by the finance ministry in November last year submitted its report on August 19.

The Institute of Cost Accountants of India (ICMAI), and the Institute of Company Secretaries of India (ICSI) had written to the finance ministry seeking expansion of the term accountant in the income tax law.

Their contention was both cost accountants and company secretaries should be included under the definition of accountant in the income tax law. The regulation, currently defines accountant as a chartered accountant in the meaning of Chartered Accountants Act, 1949. The Institute of Chartered Accountants of India (ICAI), has opposed any tweak in the law.

“In the direct tax law framework, you require an understanding of the whole financial statements; I don’t think cost accountants or company secretaries can be treated at par with the chartered accountant profession. Why do you have a need for multiple institutes? The panel has not proposed any change in the definition of the accountant,” shared the official.

In an exclusive interview with ETCFO, the President at the Institute of Cost Accountants of India, Balwinder Singh, had said he was hopeful the government would consider their request and remove what he calls the “existing discrepancy” in the law. He had argued the profession is given an accountant tag under the Goods and Services Tax Law, and the same should be provided under the Direct Taxes Code framework as well.

Source : https://cfo.economictimes.indiatimes.com/news/no-accountant-status-for-cost-accountants-company-secretaries-direct-taxes-code-panel/71220707