NFRA Penalizes CA for Failure to Exercise Due Diligence in Certifying Form 10 DA
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 6 January, 2024
Latest from Taxmann
In its Order No.0001/2024, dated 03.01.2024, NFRA has fined a CA Rs. 50 Lakhs for lapses in issuing certificate to a listed company in Form 10DA with regard to the correctness of deduction claimed by it under section 80JJAA of the Income-Tax Act, 1961. The major lapse includes-
(a) Failure to verify reorganisation of business with various parties
(b) Failure to exclude employees whose contribution was paid by the Government
(c) Failure to report additional employees during FY 2020-21
(d) Failure to verify payment of additional employee cost by account payee cheque/draft/electronic means
(e) Failure to verify emoluments limit of Rs 25,000 per month for new employees
This story also discusses the key takeaways including-
(a) NFRA’s jurisdiction over auditors of listed companies, other than statutory auditors
(b) Reliance on MRL
(c) Cross-check with annual report while issuing certificates to companies
(d) Apply mind and analyse relevant provisions while interpreting them and document the interpretation arrived at along with the reasons and basis
(e) Reliance on statutory audit report on FS/IFC
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
