To review any report prescribed under the Income-tax Act, 1961 and Rules framed thereunder and any report prescribed under the Indirect Tax Laws including Goods and Services Tax Law which are certified by a Chartered Accountant (tax auditor) in respect of certain enterprises with a view to determine, to the extent possible, compliance with the reporting requirements prescribed under the Income-tax Act, 1961 and Rules framed thereunder; compliance with the reporting requirements prescribed under the Indirect Tax Laws including Goods and Services Tax Law and compliance with the respective pronouncements, guidance notes of ICAI.

The various reports referred under clause 1 above may be selected for review by the Board:

• • • On suo moto basis or
    • with the prior approval of the Council, in case of a reference made to it in respect of taxation matters (Direct and/or Indirect) by any regulatory body including Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Ministry of Corporate Affairs, Comptroller and Auditor General of India, the Central Board of Direct Taxes, the Central Board of Indirect Taxes and Customs, State Commercial Tax Departments etc. or
    • where serious irregularities in taxation matters (Direct and Indirect) have been highlighted by the media reports.

The Board may interact with Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC)/State Commercial Tax Department to seek the reports and /or other information of the enterprises from the CBDT as well as CBIC /State Commercial Tax Department, and other regulatory authorities.

The Board may obtain the reports certified by the member (tax auditor) under the Income-tax Act, 1961 and Rules framed thereunder and under the Indirect Tax Laws including Goods and Services Tax Law and/or seek any other documents and information from the member (tax auditor) who has certified the report to be reviewed. If the Board does not obtain the report, then the Board may ask information of tax auditor from enterprises.

The Board wherever finds any material/serious non-compliance with the factors stated at paragraph 1 above, it may refer the case to the Director (Discipline) of the Institute of Chartered Accountants of India for initiating appropriate action against the tax auditor under the Chartered Accountants Act, 1949.

In cases where no material non-compliances are observed by the Board, and only immaterial non-compliances are observed, the Board may not refer the case to the Director (Discipline) of the Institute of Chartered Accountants of India for initiating action against the tax auditor under the Chartered Accountants Act, 1949. In such cases, the Board would appropriately bring the non-compliance to the attention of the tax auditor by way of an advisory.

With a view to apprise the members of the Institute and others concerned about the major non-compliances observed during the review, the Board may compile such non-compliances or commonly found irregularities from time to time and publish the same in Journal/publication of the Institute, without mentioning the names of the enterprises concerned and/or their tax auditors. Publication may also be brought out to guide the members in respect of Direct and Indirect tax audits and diligence to be exercised thereof.

The enterprises within the purview of the Board include:

• • • Entities whose equity or other securities are listed or are in the process of listing on any stock exchange, whether in India or outside India.
    • Banks (including co-operative banks), financial institutions or entities carrying on insurance business.
    • All commercial, industrial and business reporting persons, whose turnover (excluding other income) exceeds rupees one hundred crore in the financial year as may be decided by the Board.
    • Holding and subsidiary entities of any one of the above.
    • such other category of persons which in the opinion of the Board make the public interest vulnerable due to susceptibility to non-compliance of reporting requirements prescribed under the Income-tax Act, 1961 and/or under the Indirect Tax Laws including Goods and Services Tax Law relevant to it and non-compliance of the reporting obligations of the tax auditor.

The Board may also give suitable recommendations to the various Committees of ICAI.

The Board may organise webcasts and seminars/ conferences/ programmes with a view to educate the members and other stakeholders about the compliances and probable non-compliances which may occur while certifying the various reports under the Income-tax Act, 1961 and/or the Indirect Tax Laws including Goods and Service Tax Law and to organise training programmes for Members for training them as Technical Reviewers.