CAs can continue to appear before VAT authorities - so can Cost and Works Accountants and Company Secretaries
IN 11.08.2014 we carried a report 'Only Advocates to appear before VAT Authorities' informing the decision of the Allahabad High Court that any person, who is not a registered Advocate, shall not be permitted to appear before the Authority under the VAT Act.
Affected & concerned by this decision, The Institute of Chartered Accountants of India made an announcement on its website which read -
This is with reference to the order passed by the Lucknow Bench of the Allahabad High Court in the matter of Tax Lawyers Association &Anr. v/s State of U.P. &Ors. whereby only registered advocates are permitted to appear before the Authority under the VAT Act in the State Of U.P. The Institute is seized of the matter and taking all steps to ensure that the status quo ante is restored in the matter and interest of the profession is preserved. As a first step, it is proposed to implead ICAI in the aforesaid matter as ICAI is not a party to the said case.
covered the above.
So, the ICAI was impleaded and so was the Institute of Company Secretaries of India. The High Court has clarified that that the interim order dated 6 August 2014 shall stand vacated insofar as the categories of (i) Chartered Accountants; (ii) Cost and Works Accountants; and (iii) Company Secretaries are concerned.
For now, CAs, CSs and CWAs are back in practice. There is a third category of practitioners - 'authorised representatives' who are not advocates, Chartered Accountants, Cost and Works Accountants or Company Secretaries. They had also filed an implead petition which was allowed by the High Court but their case is deferred till 16th September. In the meanwhile, the application for impleadment filed by the Bar Council of Uttar Pradesh is allowed.
It is going to be the Clash of Titans.
Incidentally, the Lucknow Bench of the Allahabad High Court in another case has held that the Service Tax officers have no power to audit the assesses and Audit can be done only by Chartered Accountants and in the case of PSUs by the CAG. We carried this report in 31.01.2014.