ICAI join hands with other Chartered Accountant bodies to oppose Govt decision excluding CAs from Valuation

ICAI - Valuation

The Institute of Chartered Accountants of India ( ICAI ) has joined hands with four other accounting bodies – the Bombay Chartered the Accountants’ Society, the Ahmedabad Chartered Accountants’ Association, the Lucknow Chartered Society and the Karnataka State Chartered Accountants’ Association – have jointly written to the CBDT against the decision of the Government excluding Chartered Accountants from Valuation.

The Central Board of Direct Taxes (CBDT) has recently notified the Income Tax (6th Amendment) Rules wherein it is provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so.

Also Read : Setback for Chartered Accountants, Only Merchant Bankers can do Valuation of Unquoted Shares: CBDT

The amendment to Rule 11UA has removed a Chartered Accountant from the list of authorized professional who can calculate the fair market value of the shares. Consequently, all valuations of unlisted equity shares on or after May 24, 2018 shall be done only by a Merchant Banker.

The arbitrary decision of the Government was a major setback for the entire community of chartered accountants.

Against this decision, the ICAI, the regulatory body of Chartered Accountants has already made a representation to the Finance Ministry expressing dissatisfaction against Notification amending Rule 11UA omitting reference to term “accountant” and thereby excluding its members from valuing unquoted shares.

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