Arjun (A) Oh Lord Shrikrishna! Save Me. It is becoming too much! Shrikrishna (S) Arey! What happened?
A – Cannot cope up with this work of March!
S – Why? March comes every year. What’s new about it?
A – That’s the problem. Nothing new happens. Same old things, only more tiring. Advance tax, service tax, time-barring assessments and returns.
S – Why are there time-barring returns? Can you not file them earlier?
A – No. Some clients have a habit of filing their returns only on the last day.
S – It is their habit or your habit? You could easily push them. Do you communicate with them properly? And in time?
A – No. We ourselves keep it pending for some reason or the other. Many times, there are some issues on which it is difficult to take decision.
S – You simply keep on grumbling but don’t want to improve.
A – This year there is one more menace.
S – What is that?
A – Many clients had taken bills for adjustment of profits. But those suppliers never paid their VAT. And such defaulters’ list is now sent by MVAT authorities to income tax people.
S – Then?
A – Now, our clients had to pay the MVAT evaded by the suppliers. And on the top of it, they are facing disallowance in Income Tax.
S – What is wrong about it? They deserve it if they are falsifying the accounts. My worry is that you CAs should not be trapped into such rackets.
A – A few of my CA friends are doing only this ‘entry’ business. They are minting money and I have to slog like this.
S – I had already told you – you have a right only in the performance of your duty; not in the fruits. Those unscrupulous CAs are now getting the fruits of their deeds!
A – I agree. But the harassment at the tax office is unbearable. Their demands are astronomical.
S – Are you also involved in settling the cases?
A – What to do? There is no alternative. I don’t do it myself. That is why my cases remain pending and I get irritated.
S – Good. That is why you are so dear to me.
A – But I feel, those who settle down, enjoy life.
S – You are mistaken. Before the war in Mahabharata also, you were under similar obsession. That time, I gave you clear vision about life.
A – But that was Dwaparyuga. Today, we are in Kaliyug.
S – True. But that time your thoughts were unbecoming of a Kshatriya (Warrior). Today, your thoughts are unbecoming of a professional.
A – But the profession has degenerated into business.
S – Let the profession degenerate; but not a professional like you. Your thoughts are confused; but fortunately, your upbringing has held you from acting in that manner.
A – I was wondering how you have not mentioned anything about misconduct so far! Is this not covered in our Code of Ethics?
S – How can it not be covered? I told you that there are two schedules to your CA Act that specify different types of misconduct.
A – Then tell me, where it is stated?
S – See, bribery is a crime. If you are a party to it, it is abetment. That again is a crime.
A – But that is only if one is caught! It is a secret deal between the client and the officer. CA is just a middleman.
S – Remember, apart from the specific items of misconduct in the Schedules, section 22 of your CA Act covers ‘other misconduct’ also. That is very wide.
A – You mean, it is not only professional misconduct.
S – No. So if you are caught, you are directly covered by clause (1) of Part IV of the First Schedule and so also Part III of the Second Schedule. That means, convicted of a punishable crime.
A – What else?
S – Clause (2) of Part of IV of the First Schedule is very very wide. It says, if your action brings disrepute to the profession, that is also a misconduct. See, if you are involved as a middle-man, both the officer as well as your client discounts your value. They are happy because they are benefitted; but your image is tarnished.
A – That is true. Many clients treat us as agents only.
S – You should be careful as to how the society perceives your profession. In many scandals, the role of your colleagues is exposed.
A – What are the other instances?
S – What to tell you? There are cases of even CAs demanding dowry.
A – Really? I am aware that in certain communities, CA commands a hefty dowry. I am told, nowadays that rate also has gone down!
S – That is public perception! Do they really respect you? Three CAs formed a company for some business. But the business did not pick up, so they neglected compliances totally. That company was transferred to someone; and due to some friction, the buyer filed a complaint and such negligence brings disrepute to the profession.
A – What was the outcome?
S – They were held guilty, though left on reprimand.
A – Oh! Then it will cover traffic rules also.
S – Yes. Even the indiscipline in behaviour, indecency and so many things! There are complaints of ill treatment of articles, misbehaviour with lady staff and what not!
A – One needs to be cautious everywhere! I thought our Code covers only professional misconduct.
S – Any professional is expected to have exemplary behaviour. It covers punctuality, courtesy, proper communication, personal habits – and what not? It is all-pervasive.
A – I have seen CAs whose personal habits and mannerisms are irritating. They can’t even speak properly. Even in conferences, the manner in which they rush for lunch is not befitting a professional! The less said the better.
S – Good! You have understood it. Take care of public image and you will command respect. Council is concerned with that. Om Shanti! The above dialogue is with reference to Clause 1 & 2 of Part IV of the First Schedule and Part III of Second Schedule which read as under:
Clause 1: is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term not exceeding six months;
Clause 2: in the opinion of the Council, brings disrepute to the profession or the Institute as a result of his action whether or not related to his professional work.
Part III of Second Schedule: A member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months.
Further, readers may also refer page 229 of ICAI’s publication on Code of Ethics, January 2009 edition (reprinted in May 2009).
