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MSC1 (Director)     29 October 2010

Difference between Chartered Accountant & Tax Practitioner

 

Hi,

What is the difference between a Chartered Accountant and a Tax Practitioner (advocate), they both are doing same work, I founded many Chartered Accountants having lack of knowledge than a tax practicing advocate/TAX CONSULTANT.

I will be appreciating if an expert can elaborate me the above.

Regads

MSC1



Learning

 26 Replies


(Guest)

There is no clear answer for what you are asking for every lawyer would not specialise in Income tax nor every Chartered accountant specialises in law and holding a CA or law degree dont give you authority /knowledge the laws are so vast that only people specialising in a particular stream would have through knowledge even then continious updation with the current changes and amendments to law would be required.

The CA course has two major papers in IT that are of the level that would not match with any other level of exams so the course by its level and toughness generally gives the exoertise to a CA to be able to interpret laws (IT laws).

Comparison between a tax lawyer and CA is a individual judgement and that too about some particular persons. You cannot give a generalised view that lawyers are better in tax or CA's are

Hope this clarifies!

MSC1 (Director)     30 October 2010

 

Yes Sir, you are absolutely right, I just wanted to know the work profile of a CA and a Tax Lawyer, I mean till what extend they can work independently?

Shayan Khan (B.com)     30 October 2010

i am totally agreed with Mr. Mithilesh,

there may be some instances where Chartered Accountants would have lack of knowledge in the matter of taxation,finance, costing and company law; this may be due to their laxness(Carelessness) of updating themselves with the recent amendments.

in this world no one is perfect in every thing. there are many CA(s) who have immense command over the Income Tax Act. on the contrary, other tax consultants may have good knowledge of income tax Act, if they acquaint themselves with the recent amendments. one more thing as my friend mithilesh has rightly said that CA(s) have a good interpretations skills of Income Tax Act etc.

The Most important difference between these are, The Chartered Accountants Can Sing on Tax Audit Report and other related documents and his signature are valued, whereas under income tax, tax consultants do not have the authority to sign on the documents.

Chartered Accountants are the members of the Body constituted under an Act of the Parliament whereas, this is not in case of tax consultants.

there are many more difference but i can not express in words.

 

Thanks & regards. 

 

 

 

Jagadeesh Birkodikar (Proprietor)     30 October 2010

Although a tax advocate & CA can serve in taxation field there are some specific differences between both of them.

·         Chartered Accountant is a person who is specialized in taxation matters through passing exams conducted by Institution Chartered Accountants.

·         But with regard to knowledge, it depends on the person who acquires his knowledge through thorough studies of taxation related matters. It depends on the person. Not every Tax Advocate is intelligent than a Chartered Accountant or every CA may not be as intelligent as a Tax advocate. It totally depends on their personal caliber and efforts of gaining knowledge about subject of tax laws.

·         Companies either Private limited or Limited shall appoint a Chartered Account and must get their accounts audit by a Chartered Account.

·         But a Tax advocate is not authorized to do an audit of either a company [Limited or Pvt Limited] or under section 44 AB of IT Act where total turnover declared by an assessee is more than Rs.40 laksh [From Assessment year 2011-12 limited has been enhanced to Rs.60lakhs].

·         As the tax authorities do come under the meaning of quasi judicial authorities, a Tax advocate can appear on behalf of assessee under the provisions of Advocates Act.

·         A Tax consultant who is not an Advocate can also appear before Income Tax/Service Tax or VAT authorities as respective Acts/Law permits them to do so.

·         However a tax advocate can represent a case up till Honorable Supreme Court where a Chartered Accountant can appear on behalf of an assessee till IT applette tribunal. He cannot appear in High courts and further.

These are the main difference between a CA & a Tax Advocate.

 

MSC1 (Director)     31 October 2010

I really appreciated for your valuable answers

Shayan Khan (B.com)     02 November 2010

Thank you....

Rema (Advocate)     07 November 2010

A tax practitioner may be a Registered one or an unregistered practitioner. But a Chartered Accountant or Advocate will certainly possess an enrolment number.  A Tax Practitioner can get registration from the Income Tax Department as well as VAT Department. 

A registered Tax Practitioner, CA,or Advocate are responsible to their acts.  If any illegal activities are traced from them, they are liable  to answer to the Certificate-issuing authorities as well as the Judicial Authoriries. Criminal or Civil laws.  The wrong action of a Regd. Tax Practitioner, CA, or Advocate may invite action and lead to Cancellation of their Certificate etc.  But to an unregd. Tax Practioner or Consultant no such actions will be there.  However, Criminal or Civil law steps can be initiated against them for fradulant actions....

Rema.

swajan.... (advocate - F.C.M.A LL.M)     26 November 2010

Dear Sirs,

A Chartered Accountant is defined as  "Accountant" in the subsection 2 of Section 288 of the Income-tax Act

The Income Tax Act,1961, contains a number of provisions, which require audit for tax purposes, i.e. section 12A, 33AB, 35E, 44AB, 80HH, 80HHA, 80HHD, 80HHE, 80I, 80IA, 142(2A) etc.

So mainly the CAs do the business of accounting, book keeping and Tax Audit. They are not however having any mandatory power for any advisory services.

But as they peep into books of accounts and make all sort of dressing to accounts to provide relief to their clients, they are considered to be most trustworthy to their clients due to obvious reasons.

Now, question remains as to why M.Com, ICWA, CS etc who are qualified enough to do the same job have so far not been authorised by Income Tax to be included under the defination of accountants. One must understand LLB do not provide training for accountancy or audit. But an advocate may interpret the law of Income tax but not trained to cast the Balance Sheet.

I do not remember although that there was a landmark case in Mumbai where an Advocate has filed a case against Income Tax Commissioner as he has rejected the Tax audit report on the plea that the tax report was signed by an advocate and not a CA. The advocate lost the case on the grounds stated above. But the result could have been different if the tax audit report would have been signed by a M.Com, ICWA or CS.

So my dear friend you can do consultancy on tax planning or even casting of balance sheet but can't do tax audit.

Hope you got the key !!!

MSC1 (Director)     26 November 2010

 

Dear Sir,

This is a definite valuable answer, I really appreciate, could you provide me the case copy of

I do not remember although that there was a landmark case in Mumbai where an Advocate has filed a case against Income Tax Commissioner as he has rejected the Tax audit report on the plea that the tax report was signed by an advocate and not a CA. The advocate lost the case on the grounds stated above .

If you have the copy,

 

Regards

 

swajan.... (advocate - F.C.M.A LL.M)     26 November 2010

The copy of judgement is available on the net. 2-3 yrs ago while surfing I got hold of that. Though I do not have the same. I also saw it in the compendium of Practising Chartered Accountants. I am sorry at the moment as I have no clue of the same. If you have someone at the bar of Mumbai, please ask him. I am sure one wil get that. So far I remember it is Mum HC, Some advocate VS IT and in consideretion of 44AB, tax Audit. By chance if you get that, kindly prrovide me too. Thanks

swajan.... (advocate - F.C.M.A LL.M)     26 November 2010

Aha!! I got an interesting for you, please follow the link

 

https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2007ITAct/%5B1989%5D175ITR0254%28AP%29.htm

Rajesh Thakker (Advocate)     16 December 2010

Dear Friends,

After reading the discussion, I think that matter twist and shift to question which class is more compitable. As regarding compitibility, it is the individual skill of each person. However, under sec 29 to 34 of the Advocate Act, 1961, it is clarify that only the Advocate class has right of advocates practice and no other class has right. The CA class is for only accounting work and not for legal practice.

The Advocate class is permitted for audit work under the Gujarat VAT Act.The Maharashtra Tax Advocate Association approch to the Bombay High Court and ask for issue necessary direction to State Government for amendment into VAT Act of the State for enabling audit work under the State Act to Advocate class according to Gujarat VAT Act.

The Honb'le Bombay High Court giving their valued observation that Advocate class has right to practice of law and CA class has right to practice of Account. Both the class has to work in their limit. However, if the particular assembly give right to audit under the Act, than such class can do. But no direction was issued by the Hon'ble High Court.

Than after matter approch before the Hon'ble Supreme Court. The Hon'ble Supreme Court upheld the decision of High Court and give the advice to work according to their area.

Now, ball is in court of Central/State Govt. Bar Council of India should put a pressare on legal department for amending Direct Taxes as well as Indirect taxes according to guide line issue by the Hon'ble Supreme Court. As it is exclusive right of the Advocate Class.

Please note that the CA class is appearing before the ITAT after getting Power of Attorny on 100/- rupee stamp paper from their client.

Regards,

Rajesh Thakker

prm (.)     21 August 2011

A person is neither CA nor Advocate infact he is not even graduate.

1.Can he start his own tax consultancy firm/ business. Can he work as a income tax practioner, provided he is having good practical knowledge in income tax .


2.Is registeration required with any authority in this case ? If yes please tell which one.

swajan.... (advocate - F.C.M.A LL.M)     21 August 2011

Originally posted by :Rajesh Thakker
"
Dear Friends,

After reading the discussion, I think that matter twist and shift to question which class is more compitable. As regarding compitibility, it is the individual skill of each person. However, under sec 29 to 34 of the Advocate Act, 1961, it is clarify that only the Advocate class has right of advocates practice and no other class has right. The CA class is for only accounting work and not for legal practice.

The Advocate class is permitted for audit work under the Gujarat VAT Act.The Maharashtra Tax Advocate Association approch to the Bombay High Court and ask for issue necessary direction to State Government for amendment into VAT Act of the State for enabling audit work under the State Act to Advocate class according to Gujarat VAT Act.

The Honb'le Bombay High Court giving their valued observation that Advocate class has right to practice of law and CA class has right to practice of Account. Both the class has to work in their limit. However, if the particular assembly give right to audit under the Act, than such class can do. But no direction was issued by the Hon'ble High Court.

Than after matter approch before the Hon'ble Supreme Court. The Hon'ble Supreme Court upheld the decision of High Court and give the advice to work according to their area.

Now, ball is in court of Central/State Govt. Bar Council of India should put a pressare on legal department for amending Direct Taxes as well as Indirect taxes according to guide line issue by the Hon'ble Supreme Court. As it is exclusive right of the Advocate Class.

Please note that the CA class is appearing before the ITAT after getting Power of Attorny on 100/- rupee stamp paper from their client.

Regards,

Rajesh Thakker
"

Dear professional friends,

please download this judgement -

https://www.itatonline.org/downloads2/index.php?mvat_chartered_accountant_audit_constitutionality.pdf

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