Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty. CBDT further extends the time for Linking PAN with Aadhaar till 30th June, 2018.

Regional Rural Banks – Statutory Audit for the year 2012-13 – Revision of Fees & Allowances

GoI has Approved to the proposal for revision in the audit fees & allowances of Statutory Central
Auditors and Statutory Branch Auditors of RRBs. The same will be applicable /payable to those
auditors who conducted the annual audit of RRBs for the financial year ending 31 March 2013.
 RRB’s has been advised to make  payment of difference of amount, but this is subject to the
quality of Audit.Communication in this regards is being producec here under along with revised
fee chart for reference:


NB.IDD.RRCBD.BMBL/ /323-D/2013-14
22 May 2013

The Chairman
All Regional Rural Banks

Dear Sir

Regional Rural Banks – Statutory Audit for
the year 2012-13 – Revision of Fees & Allowances
In continuation of No:NB.IDD.RRCBD.BMBL.181/323(C)/2013-14 dated 16 April 2013, by email, on the above subject forwarding therewith the guidelines for appointment of Auditors and the selection of branches for Audit for the year 2012-13, we advise that we have since received the GoI Approval to the proposal for revision in the audit fees & allowances of Statutory Central Auditors and Statutory Branch Auditors of RRBs vied GoI letter No: F.No.1/2/2011-BOA dated 21 May 2013. The same will be applicable /payable to those auditors who conducted the annual audit of RRBs for the financial year ending 31 March 2013. The revised fees and allowances of Statutory Central Auditors and Statutory Branch Auditors is given in Annexure. This will remain applicable until further revision.

2. In this connection, it is clarified that Head Office Audit includes audit of administrative offices like Area Office and Controlling Office also. While revising the fee for SCA, fees for overall auditing / consolidation have been taken into account along with certain other aspects as mentioned in para 03 of Annexure.

3. We, further, advise that before making payment (or payment of difference of amount) you might ensure the quality of Audit.

Yours faithfully

(J.N.Prasad)
General Manager

Encl: Annexure


Annexure
Schedule of Audit Fees and TA/Halting allowances
admissible to Auditors for Statutory Audit of RRBs – 2012-13
1. Head Office audit fees
The following revision in the remuneration of the Statutory Auditors of RRBs for the year 2012-13 onwards until further revision.


Business Levels
(Advances +Deposits)
of the RRB as a whole
Audit fees(Rs)

Upto Rs.100 crore
16250
 Above Rs.100 crore to Rs.500 crore
21250
Above Rs.500 crore to Rs.1500 crore
32500
Above Rs.1500 crore to Rs.3000 crore
42500
Above Rs.3000 crore to Rs.4500 crore
53750
Above Rs.4500 crore
62500

2. Branch audit fees

Sr No.

Quantum of Loans & Advances of
the concerned branch (Excluding
Inter branch advances)
Audit fee(Rs.)

1.
Upto Rs.2.50 crore
3875
2.
Above Rs.2.50 crore to Rs.5.0 crore
4875
3.
Above Rs.5.0 crore to Rs.8.0 crore
5875
4.
Above Rs.8.0 crore
6875

3. Reimbursement of Travel ling and Halting Allowances (TA/HA) for Head Office Audit and Branch Audit
(a) Lodging Charges
Since RBI has categorised the audit officials into three categories and equated them with the
equivalent rank of bank officials for payment of lodging charges etc. to the partners / proprietors of the audit firms, it was agreed to similarly equate the audit officials with the RRB officials. The lodging charges payable to the auditors may be paid, subject to the production of bills.

Category of audit
officials

Scale & designation of bankofficials (as per IBA) equated for PSB audit

Scale & designation of bank officials (as per IBA) now proposed for RRB audit
Partners / proprietors
of audit firms (Central & branch audit firms)
VII General Manager
V/ VI – General Manager

Qualified Assistants
III – Senior Manager
III – Senior Manager

Unqualified Assistants
I - Officers
I - Officers



Wherever banks are making arrangements for the stay of the auditors, no lodging charges
will be payable. Wherever banks having Guest House of Visiting Officer's Flats, the same may be utilized to cater to the needs of the auditors.

(b) Boarding Charges
The boarding charges payable to audit officials have been decided as under :

Category of audit officials
Scale & designation of bank officials (as per IBA) equated for PSB audit
Scale & designation of bank officials (as per IBA) now proposed for RRB audit
Partners / partners of audit firms
500
400
Qualified Assistants
425
375
Unqualified Assistants
375
325

The above boarding charges are subject to the production of bills. Where no bills are produced, boarding charges @60% of the aforementioned rates may be paid as hitherto, to cover the boarding and other incidental charges, further wherever the RRB is making the boarding arrangements, no boarding charges will be payable.

(c) Travel ling Allowance
Travel ling allowance in respect of partners / proprietors is to be considered by allowing travel by air-conditioned First class by rail or by air in economy class or actual cost of conveyance by other modes of transportation where the routes are not served by air / rail. The audit assistants are to be allowed to travel by First class/ air conditioned II tier class by rail or to be reimbursed the actual cost of conveyance by other modes of transportation where the routes are not served by rail.

 (d) Daily conveyance
The rates of daily conveyance charges for the three categories of auditors subject to the conditions prescribed hereunder are :

i. The actual local conveyance charges incurred by auditors while working away from their
headquarters for conducting the bank's audit, not exceeding Rs.188/- per day for
proprietors/ partners, Rs.94/- and Rs.75/- per day for qualified and unqualified assistants
respectively, may be reimbursed on a self-declaration basis.

ii. In case of local auditors, it the distance between the auditor's office and bank's office /
branch is beyond 8 kms, actual expenditure not exceeding Rs.188/- per day for
proprietors/ partners, Rs.94/- and Rs.75/- per day for qualified and unqualified assistants
respectively, may be reimbursed on a self-declaration basis.

iii. However, the reimbursement of such expenses shall not exceed 10% of the audit fees
payable to the respective auditors. It will be observed from the foregoing that there will be
no distinction between statutory central auditors and branch auditors regarding payment
of branch audit fees and reimbursement of travelling, halting allowance and daily
conveyance charges.

With regard to the reimbursement of travelling, halting allowance and daily conveyance charges, the following aspects are to be considered :
i. Banks should call for such details as are necessary for verification of bills in this regard and the statutory central auditors as well as branch auditors shall furnish such details for
verification of the actual expenses.
ii. Where the statutory central auditors have their headquarters at a place different from that where the Head / Central Office of the bank is situated, but have an office at the same place as the Head / Central Office of the bank, the TA/ HA, if any, should be nominal for the
central audit. However, to ensure the quality of audit, there should be no objection to the
partners of the firm visiting the Head / Central Office of the Bank as and when they deem it
necessary.

iii. Where the statutory central auditors or branch auditors have an office at the place where
the branches/ offices of the bank to be audited are situated, they will not be reimbursed
TA/HA. However, local conveyance may be reimbursed as suggested at para 3(c) above.

iv. The TA/HA should be kept to the minimum.

v. In case of dispute between the auditors and the bank regarding settlement of their bills, the Chairman of the RRB shall be the final authority to decide the claims. The Chairman has
to satisfy himself that the actual expenses have been incurred by a particular auditor and
the claims are settled keeping in view the aforesaid RBI guidelines.

vi. For audit of branches, where no traveling and or lodging facilities are available, the bank
may provide to the Auditors, a Jeep or other mode of conveyance and the lodging and
boarding facilities. These expenses as also other expenses incurred by the bank, if any, on
the lodging / boarding / halting of auditors shall be deducted from the total claims
preferred by the Auditors while settling their bills by the RRBs. The Auditors will have to
submit the necessary bills, vouchers etc., in support of their claims.

4. Fees in respect of submission of Long Form Audit Report / Filling of Tax Returns under Income Tax Act, 1961/ Wealth Tax Act, 1957 or any other Returns / Certificates required under any other Act which the RRB may be required to file.
No separate fees for LFAR would be payable to Auditors for HO and Branches as substantial
enhancement has been made in the revised fee structure. Further, no separate TA/ HA will be admissible, for these Returns / Certificates.

5. Fees to be paid when branches to be audited are 10 or less in number.
In case of RRBs whose branches to be audited are 10 or less in number, the Statutory Central Auditor (SCA) who takes up the work of HO will also take up the audit of branches. Payment for branch audit will be payable separately as per revised norms.

6. Service Tax
The RRBs are required to pay Service Tax at applicable rate to the Auditors on production of
receipt.


7. The hike in audit fees will be applicable to those Auditors who conducted the annual audit of RRBs for the financial year ending 31.3.2013.

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