As the President of ICAI, I desire to periodically communicate through e-mail and website so as to inform you of the recent developments concerning the profession. I request you to please access my message through the home page of ICAI’s website from time to time. This would in turn facilitate your valuable feedback to be channelised in a timely manner.

The Exemption notification no.59/98-Service Tax dated 16th October 1998 has been withdrawn w.e.f. 1st March, 2006, thereby making the members in practice liable for service tax in respect of all services rendered by them. This is a grave injustice and inequity caused to the profession by the Government. In 1998, the exemption notification was introduced with strong reasoning to remove discrimination among Chartered Accountants, lawyers and income-tax practitioners who provide similar services. When the legal and income-tax practitioners are not liable for service tax and the levy is imposed only on our members, it removes the level playing field and places our profession at a great disadvantage. This matter has been taken up strongly and appropriately with the concerned authorities. The following specific steps have so far been taken:

The proposed Section 139B of Finance Bill, 2006 provides for creation of new service providers for preparing the income-tax returns of small assesses, other than companies and tax audit cases, with a code of discipline and with a need to affix signature in the return. Representations have been made in this regard in response to which, the Finance Ministry officials have assured that the intention is not to exclude Chartered Accountants from this kind of work or practice, but to develop and train under-graduates so as to widen the tax base and rope in non-tax payers into the tax net. According to them, exclusion of Chartered Accountants from Section 139B is only to exempt them from affixing signatures to the return and not to impose the code of discipline under the Scheme. However, we will further represent in this matter so that members in practice, more particularly in smaller places, are not affected.

In view of the Finance Ministry’s decision giving option to the Boards of public sector banks to appoint the statutory auditors at the central and branch level, representation was made to the Ministry expressing our concern in the context of principles of corporate governance. We met in person the Additional Secretary, Banking Division, Ministry of Finance and explained as to how independence of statutory auditors may be jeopardised if such option is exercised. The Governor and Deputy Governor of Reserve Bank of India were also appraised personally. In view of our representation, it has been agreed not to implement the new proposal for the audit of year 2005-06 and accordingly appointments have been done by RBI and the list has been sent to the banks. The list of Branch auditors as finalised by RBI has been hosted in our website. We are not resting upon this solution, but are seriously pursuing the matter at the Ministry level with a view to persuade them to continue with the existing practice of appoin.

In view of the dates notified for Assembly elections in certain States, the Examination Committee has decided to modify the schedule of examinations. As per the original schedule, the Examinations were to begin on 2nd May and conclude on 10th May with Sunday, 7th May as a holiday. As per the revised schedule, the Examinations will commence on 2nd May, 2006 and would conclude on 12th May, 2006. There would not be any examination on 3rd, 7th and 8th May, 2006, since 3rd & 8th May, 2006 are the polling dates. The notification has been issued and the information has been hosted in the website.

The publication and smooth delivery of journal was disrupted due to circumstances beyond control. However, appropriate steps have been taken to ensure that the journals reach the members at the earliest. You can be rest assured that delivery of journal will be brought to normalcy from April, 2006 issue. Till such time, I seek your indulgence and understanding in the matter. It may also be mentioned that the journals are uploaded in the website promptly for your immediate reading.

We have identified ten priority items as part of Mission 2006 Statement (hosted in the website). Besides seeking to enhance the quality of service to students; members in practice; members in industry; members abroad and in particular young members and SMPs, macro level tasks are taken to the forefront for accomplishment.

Let us be proud of the profession to which we belong. This is one profession which provides wide core competency in terms of theoretical education; greater exposure through practical training; robust examination system to evaluate the merit; continuing education mandate for excellence; disciplinary mechanism to ensure ethical values and a peer review system to enhance quality in functioning. No other profession can boast of encompassing all these facets into its fold.

We will build our brand value on the strength of attributes that inspire confidence in the minds of others and bring the desired level of credibility in our functioning.

In conclusion, let me add a simple but important message for your consideration. Let us observe immense value for time. It is a commendable virtue to be punctual in anything that we do. Let punctuality be the hallmark of CA fraternity. By adhering to time schedules with a commitment, an individual can excel in his performance and earn the confidence of others. Similarly, if the limbs of ICAI can conduct CPE programmes and other activities with time consciousness, it will bring greater credibility to our organisation. Let us value the man-hours of our members and ensure no delay in commencement or conclusion of any of our meetings or programmes. Instead of waiting for those who are expected to join late, let us commence the programme on time and thereby honour those who are punctual. This approach would inspire those who turn up on time to continue to be punctual and others to emulate them. Time and tide wait for none. Let ICAI also not wait for any one, including its President, as professionalism. Let us join hands to build a credible economy in the incredible India.

Jai Hind.

March 15, 2006
New Delhi