Chartered Accountants must check ICAI clarification before accepting GST Audit Assignment
Contributed by CS Payal Kataria
Before accepting ST Audit Assignment, Chartered Accountant must read below mentioned clarification issued by ICAI. Under certain situations CA is not permitted to do GST Audit if providing certain specific services to the same client. Below is list issued by ICAI to clarify as to whether Members doing the GST Audit are permitted to provide the below listed services:
|
S. No. | Nature of Service being provided by Chartered Accountant | Whether members doing GST Audit are permitted/not | Reference to Standard /Council decision |
| 1 | Accounting without uploading of returns | Not permitted | Guidance Note on the independence of Auditors states as under:- “Members are not permitted to write the books of account of their auditee clients.” |
| 2 | Accounting with uploading of returns | Not permitted | Same as above |
| 3 | Accounting with uploading and verification | Not permitted | Same as above |
| 4 | Concurrent audit services | Not permitted |
ESB at its 106th meeting decided that Concurrent audit
is a kind
of internal audit. |
| 5 | Internal audit service | Not permitted | As per announcement dated. 27.9.2018 |
| 6 | Tax advisory services | Permitted |
107th Meeting of
ESB on 08.04.2009 decided that
both statutory auditor and Internal Auditor can engage in
tax advisory Services |
| 7 | Dispute resolution / representation services | Permitted |
107th Meeting of
ESB held on 08.04.2009 inter alia decided that Tax
Representation, can be done by both, internal auditor and statutory auditor |
| 8 | Tax audit services | Permitted | Both are statutory audits |
| 9 |
Statutory audit services – Company Act, Co-operative audit etc. | Permitted | ESB at its 107th Meeting held on 08.04.2009 decided that Tax Audit can be done by Statutory auditor |
| 10 |
Bar on one
partner vs. other Partner (If one
partner of the firm is not permitted to do
GST Audit then whether
other partner can do
the audit) | Bar will be on all partners in the firm. | |
Source: ICAI website
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