The Institute of Chartered Accountants of India (ICAI), the regulatory body of Chartered Accountants has 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.
As per the Notification issued last week, the Income Tax (6th Amendment Rules) provided that only Merchant Bankers are entitled to do Valuation of Unquoted Shares and the Chartered Accountants are no more eligible to do so.
The arbitrary decision of the Government was a major setback for the entire community of chartered accountants.
“ICAI is unable to appreciate the rationale of this notification, which may not be in the interest of the assessees. One will appreciate that the Chartered Accountancy qualification is a blend of financial management, strategic management and financial reporting which provides a focused understanding and concentrate on valuation and thus, the student who qualifies as a Chartered Accountant is sufficiently equipped to independently undertake Valuation Assignments,” the Institute said in the representation.
The Judicial Forums has recognized the Chartered Accountants as sole expert in the area of accounting, auditing as well as connected valuations. Further, Section 247 of the Companies Act, 2013 recognizes chartered accountant to be eligible for registering as a valuer.
Chartered Accountants are also entitled to be registered as valuers under the Wealth Tax Rules.
The omission of the term “Accountant” after the successful implementation of the provision for six long years may be reconsidered,” it said.
