Professional Firms Like a CA, Legal and Lawyer

Professional Firms Like a CA, Legal and Lawyer

Chartered Accountants were the first accountants to form a professional accounting body, initially established in Scotland in 1854. ... The title is an internationally recognised professional designation; the certified public accountant designation is generally equivalent to it.Chartered accountancy has been one of the most popular career choices in India. This profession is not easy to get into but if you manage to do so, it offers a great career path, salary, and respect among people. One of the reasons why people respect chartered accountants is not because of the designation or pay, it is mainly because it is not easy to become one. A chartered accountant, also known as a certified public accountant or CPA, is a professional accountant qualified to work with a spectrum of accountancy related activities. A chartered accountant will implement accounting systems, prepare monthly financial reports, and submit corporate tax returns, Company Audit, Direct, Excise, And Service Tax, International Tax, GST Compliance, Audit, And TrainingCompany Secretarial Services, Cost Accountancy

A CA as a management consultant performs a lot of consulting services as mentioned belowfew of the rolls played by a Chartered Accountant:

Accountancy

Maintenance of the accounts and preparation of Financial Statements. It includes various vast services like simple Bookkeeping to complex financial analysis.

Auditing

A Chartered accountant’s essential skills are his specialized training, skills and judgment taking power which is every day and every time affair. Auditing ensures the users of the financial statements that the accounts presented before them are prepared on the correct accounting principles. Also, the Goodwill of a company is based on the right and the correct financial statement as it is the only source of representation of the financial condition of an Organization. Faking financial statement could lead to disbelief and a lousy repo.

Taxation

On the Statute book, there are several types of Taxes. Amongst them, the current and continuous tax information are of par importance and are vital to the powerful economies of the Business Management. Assessment of Taxes is linked to financial accountancy. He imparts the responsibility of preparation of Tax returns, Assesses representation before the Income-tax authorities and he is capable enough to give general Taxadvice to his clients.Recently, it has become evident and a new role has been added to that of a Chartered accountant and that is auditing complicated cases, having vast revenue potential.

Cost Accountancy

A Chartered accountant’s role becomes very important when it comes to Cost accountancy in a manufacturing firm or a service provider firm. He has to ascertain the cost of production and the costs which would be incurred at the different levels of the production. He needs to provide costing information for the proper Management. Cost controlling methods and establishment of appropriate selling prices is also amongst the various important roles of a professional Chartered accountant.

Special Company Work

During the formation, financial structure and liquidation of a Limited company, the Chartered Accountant services become crucial and important. During the process, the secretarial and Registration work and the duties of a receiver are also carried by the Financial Accountant in addition to the other company work.

Investigation

The Chartered Accountants are often seen whenever an investigation is carried to ascertain the financial position of a business especially during the new issue of share capital, the purchase or sale or financing of a business, reconstruction and amalgamations. Investigations are also got done for achieving greater efficiency in management or administration and finding out reasons for increases or decreases in profits etc.

Executors and Trustees

When a Chartered accountant works as a Trustee or an executor he has to work in co-operation with solicitors or lawyers and vice versa. The accountants help the Solicitors or lawyers in carrying out works and assist them in the related accounting works.

Directorship

People have now realized the importance of a Chartered accountant in the Board of Directors for better decision making and getting more options before coming to any decision and such appointments are growing on a rapid rate, unlike the early times when the senior members of the company were appointed in Board of directors.

Companies Secretarial Work

The smaller companies who are the participants of a limited company and are unable to afford a full-time secretary appoint a professional accountant, who apart from his various other duties, performs an important role in the management chain and also offers secretarial services.

GST Compliance, Audit, And Training

Chartered accountants keep a great understanding in the GST compliance as well as audit and training of the concerned rules regulations along with the compliance for the client handling

Management Accounting

Under Management accounting, a professional Chartered accountant has to perform several duties like the formulation of policies, day to day control, performance evaluation, etc.

Share Valuation Work

When the amalgamation or re-organisation of any company takes place for takeover or acquisitions, the Chartered Accountant does the valuation work of the public or private companies. Period of Preservation of Accounts/Records under Different laws

COMPANIES ACT FOR RECORDS STORAGE IN PHYSICAL FORM

  • A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year.
  • A S. 25 company is required to maintain its books of account and vouchers for a period of not less than 4 years.
  • The books and papers of the Amalgamated/Transferor Company must be not be disposed of without the prior permission of the Central Government.
  • The books and papers of a company which has been wound-up and of its liquidator shall not be destroyed for a period of 5 years from the date of its dissolution. They may be destroyed earlier with prior Central Government permission.
  • Every Company (not being an NBFC) accepting public deposits must maintain a Register of deposits for 8 calendar years from the financial year in which the latest entry is made in the Register.
  • The Register and Index of Members must be maintained permanently.
  • The Register and Index of debenture-holders must be maintained for 15 years after the redemption of debentures.
  • The copies of all Annual Returns and Certificates annexed thereto must be maintained for 8 years from date of filing with the ROC.

NBFC DIRECTIONS
Every NBFC accepting public deposits must maintain a Register of deposits for each branch and a consolidated Register for 8 calendar years following the financial year in which the latest repayment/renewal entry is made in the Register.NBFCs should maintain all necessary records of transactions for at least ten years from the date of cessation of transaction between the NBFCs and the client.

INCOME-TAX ACT, 1961
Assesses are required to preserve the specified books of account for a period of 6 years from the end of the relevant assessment year, i.e., for a total period of 8 previous years. Thus, accounts must be maintained for P.Y. 2008-09 and onwards and accounts up to 31st March, 2008 (P.Y. 2007-08) need not be maintained for income-tax purposes.Period of six years gets extended if the assessment is reopened u/s. 147, till the time assessment is completed.Transfer Pricing documents and information specified under Rule 10D must be maintained for a period of 8 years from the end of the relevant assessment year, i.e., for a total period of 10 previous years.In a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax has escaped assessment for any assessment year — 16 years from the end of relevant assessment year.

CENTRAL EXCISE
Records including books of account and source documents and data in any electronic media must be maintained for 5 years immediately after the financial year to which such records pertain.

SERVICE TAX
Records including books of account and source documents and data in any electronic media must be maintained for 5 years immediately after the financial year to which such records pertain.

MAHARASHTRA VALUE ADDED TAX RULES
Every Registered Dealer must preserve all books of account, registers and other documents pertaining to stocks, purchases, dispatches and deliveries of goods, payment made and receipts towards sale or purchase of goods for a period of not less than 8 years from the expiry of the year to which they relate. In case where any proceedings are initiated, then the dealer shall preserve books, till a final order is passed in respect of the said proceedings.

SEBI REGULATIONS
Under the SEBI Regulations for Stock Brokers, Merchant Bankers, Portfolio Managers, Underwriters, Debenture Trustees, FIIs, Custodian of Securities and Depository Participants the Records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 5 years. In case of any investigation by CBI or police books and records to be maintained up to settlement of case (see circular dated 4-8-2005).
Under the SEBI Regulations for Venture Capital Funds and Mutual Funds the records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 8 years.SEBI Regulations for Registrar & Transfer Agents and Bankers to an Issue the records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 3 years.

ICAI – COUNCIL’S DECISION OF 1957
CAs should preserve records relating to audit and other work done by them, routine correspondence and other papers for a minimum period of 10 years

Law Firm

A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other matters in which legal advice and other assistance are sought.Each of the many areas of lawyer responsibility contains a discrete category of ethical concerns. These areas can be organized as the lawyer-client relationship, the lawyer as counsellor, the lawyer as advocate, transactions with persons other than clients, law firms and associations, public service, information about legal services, and the integrity of the profession. The rules of conduct that govern these areas are subject to interpretation, and knowledge of what specific conduct has been found to violate a rule is often necessary for a complete understanding of the rule's meaning.

Lawyers, also known as attorneys, are certified professionals who advise and represent natural and juristic persons in legal matters. They counsel clients, perform legal research, prepare legal documents and represent clients in criminal and civil court proceedings.

Lawyers typically do the following:

  • Advise and represent clients in courts, before government agencies, and in private legal matters
  • Communicate with their clients, colleagues, judges, and others involved in the case
  • Conduct research and analysis of legal problems
  • Interpret laws, rulings, and regulations for individuals and businesses
  • Present facts in writing and verbally to their clients or others, and argue on behalf of their clients
  • Prepare and file legal documents, such as lawsuits, appeals, wills, contracts, and deeds
  • Lawyers, also called attorneys, act as both advocates and advisors.
  • As advocates, they represent one of the parties in a criminal or civil trial by presenting evidence and arguing in support of their client.
  • As advisors, lawyers counsel their clients about their legal rights and obligations and suggest courses of action in business and personal matters. All attorneys research the intent of laws and judicial decisions and apply the laws to the specific circumstances that their clients face.

Laws Related to Data Retention Policy:

In India:
In India there is no Central Act which laid down the provisions related to Data Retention Laws. But there are different policies incorporated by various agencies and which maintain and follows their policies. Example: Government of India Central Vigilance Commission by their wide notification no. No.17/09/2006-Admn. Gives the provisions related to Retention period/destruction schedule of recorded files, available at http://cvc.nic.in/retention.pdf; similarly the Ministry of Finance- Financial intelligence Unit has its own policy. Notification No. 9/2005 - gives the rules for Record Keeping and Reporting.

{Rule 6. Retention of records - The records referred to in rule 3 shall be maintained for a period of ten years from the date of cessation of the transactions between the client and the banking company, financial institution or intermediary, as the case may be."}.Thus, it may be noted that organization has its own Data retention Policies and certain rules for retention of such records. However, there is no such established law wherein it is binding for the organizations to prepare such policies.

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