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.

No Bar on Chartered Accountants for Acceptance of more than 15% Fees from Single Client: ICAI issues Clarification

The Institute of Chartered Accountants of India ( ICAI ) has clarified that there is NOT a bar in the revised Code of Ethics on acceptance of more than 15% fees from a single client.

The ICAI has said that Some members have expressed their concern on one of the provisions contained in Paragraph R410.4 of the Volume-I of revised Code of Ethics on measures for addressing self-interest threats resulting from the dependence of Fees from a single client.

The ICAI clarified that there is NOT a bar in the revised Code of Ethics on acceptance of more than 15% fees from a single client. There is the only requirement of disclosure, and taking safeguards prescribed therein, if the total gross annual professional fees from the audit client and its related entities represent more than 15% of the total fees received by the firm expressing the opinion on the financial statements of the client for two consecutive years.

Accordingly, the Audit may be continued while taking safeguards as mentioned in the said Paragraph. The ICAI further clarified that this rule would not apply in case of audit of Government Companies, public undertakings, nationalized banks, public financial institutions, or where appointments are made by Government; OR where the total gross annual fees of the Firm does not exceed five lakhs of rupees.

It may also be relevant to note that the rule applies ONLY where such Fees are received from an AUDIT CLIENT.

Read more at: https://www.taxscan.in/no-bar-on-chartered-accountants-for-acceptance-of-more-than-15-fees-from-single-client-icai-issues-clarification/57436/

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