ICWAI says Centre bent on curbing its autonomy

The Institute of Cost and Works Accountants of India (ICWAI) said that the government was bent on curbing the autonomy and proper functioning of the institute through the new CWA Act which was pending.

Bibhabanabda Majumdar, Vice president, ICWAI said that the Act if enforced would curb the autonomy of these professional institute and increase government control over them thus affecting the day-to-day functioning of the institute as well as delay decision making.

"Amendment proposals like more government nominee in the Council, compulsory inclusion of one government nominee in each committee of the council, constitution of an Appellate Authority to take up cases of misconduct, constitution of quality review board for maintaining quality standard of work of the Cost Accountants "" presently looked after by the council particularly since ICWAI was prescribing cost accounting and other related standard, prohibition of government employees and others from contesting council elections," Majumdar explained.

The VP also said that demands put forward by the institute like change in name of ICWAI to ICMAI was not considered.

"Moreover the definition of Accountant in the Income Tax Act 1961 has also not been considered. Instead a provision empowering the government to issue directive has been further strengthened.

"It was felt that the purpose for such a move is nothing but to destroy the professional independence free from bureaucratic and political control. The committees of the Council being expert bodies, no purpose would be served by including government nominees in each of these committee. The proposal to prohibit government employees from seeking election to council was also unfortunate as significant specialisation of cost accounting in this country concerns the public sector as well as the government," he explained.

ICWAI has also demanded a number of new measures which included making Cost Accounting and Cost Audit compulsory for all entities, engagement of Cost Accountants for annual and recurring Excise Audit in all enterprises.

They have also asked for engagement of Cost Accountants by all tariff regulatory bodies for tariff recommendation. They should also be included statutorily in all strategic sector organisation.

Demands also included statutory engagement of CA for locating and assessing impact of dumping, for performance and cost monitoring.