ICAI

Internal Auditor cannot undertake GST Audit of same entity simultaneously- ICAI Clarification

Internal Auditor cannot undertake GST Audit of the same entity simultaneously- ICAI. Bar on internal auditor regarding tax audit also apply to GST Audit 

The ICAI had received the following query from the members and other stakeholders as to:

Whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017?

With respect to a similar question regarding Tax Audit u/s 44AB of the Income Tax Act, 1961, the ICAI in 2008 had held that internal auditor of an assesee, whether working with the organization or independently practising Chartered Accountant being an individual chartered accountant or a firm of chartered accountants, cannot be appointed as his Tax auditor.

The Council of the Institute in its 378th Meeting held on 26th and 27th September, 2018, noting its earlier decision and decided that based on the conflict in roles as statutory and internal auditor simultaneously, the bar on internal auditor of an entity to accept tax audit (under Income Tax Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017).

Accordingly, it was clarified that an Internal Auditor of an entity cannot undertake GST Audit of the same entity

Share

Recent Posts

  • Income Tax

Non issue of notice u/s 143(2) for even belated ITR filed u/s 148 makes assessment void ab initio

Non issuance of notice u/s 143(2) for return filed u/s 148 even though belatedly, makes the assessment framed bad in…

3 days ago
  • Insurance

Calculation of functional disability depends on victim’s earning capacity in open market – SC

Calculation of functional disability depends on assessing the victim’s earning capacity in the open, competitive market – Supreme Court In…

4 days ago
  • Income Tax

Appeal against ITAT shall lie only before High Court within whose jurisdiction AO is situated

Appeal against every decision of ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who…

5 days ago
  • Excise/Custom

SC recommends action against Customs Officer who relied upon AI generated fake case laws

Supreme Court recommends action against Commissioner of Customs who relied upon non-existent AI generated case laws. Supreme Court recommends action…

6 days ago
  • Income Tax

Non- payment of cost imposed can’t trigger automatic confirmation of an invalid exparte assessment.

ITAT power to pass such orders "as it thinks fit" implies a judicial discretion to be exercised within the parameters…

1 week ago
  • Income Tax

Non-deduction of TDS does not make transaction as unexplained in the hands of deductee – ITAT

Mere non-deduction of TDS by the deductor on a transaction does not change the character of the transaction to make…

1 week ago