Why CS and CMA Should Be Included in Tax Audits

1. Growing Number of Tax Audits

India is witnessing significant business growth, and with this comes a huge increase in the number of tax audits required each year. Chartered Accountants (CAs), while highly skilled in tax matters, often struggle to manage the huge volume of audits. In some cases, a single CA might have to handle hundreds of audits at once, which could impact the quality of the audit process.

2. Expertise of CS in Legal Compliance
Company Secretaries (CS) are experts in company law and regulatory compliance. They are well-trained in managing legal aspects related to companies, including filing, incorporation, and tax-related matters. Their knowledge of legal frameworks can significantly contribute to the tax audit process especially in ensuring that the business is following all necessary legal requirements.

3. Expertise of CMA in Financial Analysis
Cost Management Accountants (CMA) specialize in financial analysis, cost management, and budgeting. They are skilled at reviewing financial statements and ensuring that the financial data of a business aligns with tax laws. CMAs can play a crucial role in checking financial accuracy, ensuring that tax returns are filed based on correct financial data.

4. Workload Distribution

As the number of tax audits increases, the workload on CAs becomes overwhelming. Allowing Cs and CMA professionals to participate in tax audits will help distribute the workload more effectively and ensure that audits are conducted in a timely and efficient manner.

5. Recognizing Professionals Globally
India is striving for global recognition in various fields, and its professionals should be able to compete
internationally. Allowing CS and CMA professionals to handle tax audits will help raise the standard of professional services and showcase the depth of expertise available in India. Many countries, such as Australia and Canada, recognize professionals with diverse financial and accounting backgrounds in their audit processes.

6. Similar to Company Incorporations and Filings.

Just as CAs , CS, and CMAs are involved in company incorporation, form filings, and regulatory compliance due to the large number of registrations, the same logic applies to tax audits. As the number of businesses grows, so does the need for efficient tax audits.

Conclusion
As tax audits become more frequent due to business growth in India, relying solely on CAs to handle the entire workload can affect the quality of audits. CS and CMA professionals will not only help distribute the workload but also ensure compliance, transparency, and accuracy in the audit process. Given their expertise in company law, regulatory compliance,and financial analysis,
CS and CMA professionals are well-equipped to contribute to the growing need for tax audits in India. Including CS and CMA in tax audits will also help position India’s professionals as globally competitive ,aligning with global standards and strengthening India’s position in the global business landscape. Ultimately, this will benefit businesses and individuals by facilitating more efficient and accurate tax compliance.

Contact Information
Hannu Goyal
Practicing Company Secretary
Phone: 9802953072
Email: cshannugoyal@gmail.com