Find Accountancy, Audit and Tax expertise in India
- Overview
- Profession
- Tax
Overview
There are many accountancy firms in India, with accountants present throughout all the major cities, predominantly working in small firms. The ‘Big Four’ accountancy firms also operate, however member firms are not allowed to change their names to match those of the international networks they belong to. This includes members of KPMG (BSR & Co), Ernst and Young (S.R.Batliboi & CO., S.R.Batliboi & Associates, S.V.Ghatalia & Associates), Deloitte (Deloitte Haskins & Sells, A.F Ferguson, S.B. Billimoria and Fraser and Ross) and PWC (Price Waterhouse, Price Waterhouse & Co., Love Lock & Lewes and Dalal & Shah). Auditing practice in India originates from the Companies Act of 1956, which requires shareholders to annually select auditors. If a company’s income exceeds a specified amount, this specific audit must be carried out alongside an additional tax audit, as specified by the Income Tax Act. In 2011 India adopted the International Financial Reporting Standards (IFRS) with regard to listed entities and other public interest entities. Continuing convergence involves negotiaion with the several regulators that are responsible for overseeing accounting standard-setting, including the National Advisory Committee on Accounting Standards, the Reserve Bank of India, the Insurance Regulatory and Development Authority, and the Securities and Exchange Board. Additionally, the Indian Income Tax Act will have to undergo significant change in order to converge with IFRS. In the World Economic Forum’s Global Competitiveness Report (2012-13) India came 44th in the world (out of 144 countries) in relation to the strength of its auditing and reporting standards, with a value of 5.0 out of 7, above the world mean of 4.6. In the 2011 World Bank’s Ease of Doing Business Index it placed 128th in the world (out of 183 countries) for resolving insolvency, below Bangladesh (107th), Nepal (112th) and Pakistan (74th).
Profession
The Institute of Chartered Accountants of India is the leading professional body within the industry. The Institute has around 160,000 members spread throughout India and abroad. It promotes education through accredited institutions and branches which meet the requirements of the international educational pronouncements of the International Federation of Accountants (IFAC). Education involves three and a half years of Practical Training concurrent with components of the Professional Competence Examination.
Tax
Personal income tax in India is progressive up to 30%, for incomes over Rs 500,000, plus the applicable cess of 3%. Corporate tax rates depend on the specific company’s country of origin. Native companies pay a flat 30 % rate on global income, whilst foreign companies pay a 40 % rate on income within Indian territory, with additional surcharges of up to an additional 2.23 % (2011). Value added tax (VAT) is charged at a standard rate of 12.5%, with lower rates of 4% and 1%, except in certain instances of higher rates. In the 2011 Ease of Doing Business Index India placed 147th in the world for paying taxes, below Bangladesh at 100 and Nepal at 86, but above Pakistan in 158th place. In the Global Competitiveness Report (2012-13) India placed 123rd in the world, with a total tax rate of 61.8%.
| Accountancy, Audit and Tax organisations in India | |
|---|---|
| Karnataka State Chartered Accountants Association (REGD) |
|
