Indian CA Firms may have to furnish details of Deal with Global Firms soon

CA Firms - Taxscan

The Indian CA firms cannot conceal the details of any deal with global firms from 1st January 2019.

A draft review report released by the Institute of Chartered Accountants of India (ICAI) includes a clause under which domestic accounting firms will likely be asked to disclose their financial transactions with multinational players, reported DNA. As per the clause, any arrangement with multinationals accounting firms including licences, affiliations and network will have to be mandatorily registered with the ICAI.

“Every member holding Certificate of Practice /Indian CA Firms having affiliation/networking/ licensing  agreement by whatever name called, with International network shall file Annual Information Report to the Institute, disclosing, inter alia, the details of the remittances made to and received from overseas on account of networking arrangements, the nature and purpose of such receipts and payments, material changes to the covenants of the partnership deed, entry and exit of new partners in every year,” reads the draft.

Earlier after a Supreme Court order, the top accounting body had formed an 8-member committee to examine the issue of multinational accounting firms camouflaging with Indian entities.

The clause may not go down well with international accounting players like KPMG, Deloitte,  PwC and EY.

As per the DNA report, few domestic CA firms work as dual agents – they portray themselves as MNC to get big projects and claim that they are purely Indian CA firms in front of the ICAI.

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