Chartered Accountant (img: Freepik)

Under the foreign trade agreement (FTA) dialogue with the United Kingdom and Canada, the chartered accountants (CAs) of these countries are likely to get permission to practise in India.

This proposal has been presented by the institute of chartered accountants of India (ICAI).

It is noteworthy that, under the FTA with Australia, their CAs can also practise in India.

Around 42,000 Indian CAs are currently operating in foreign countries, over which the CAs from these three countries could get a green signal to practise in India. Indian CAs would also be able to practise in these countries.

Upon its implementation, this would be the first time foreign CAs would be operating in India.

Foreign CAs will initially have to get themselves registered under the ICAI, the body that will regulate them.

A CA from Ahmedabad said, “Looking at this positively, Indian companies will benefit from their intelligence and accuracy. Those willing to do honest work and follow the correct advice will benefit from their skills. The ones auditing just for the sake of submitting it to the government will benefit less, as foreign CAs don’t indulge deeply in the auditing process. This will result in a lack of accuracy in the auditing.”

They added, “On the other hand, entities operating honestly will benefit, as they will now be provided with a decent CA. But their operational capabilities in India will be put to the test. Their entry will increase the competition as well.”

Foreign CA firms currently practise in India through a joint venture. Their works have been both appreciated and criticised.

In the next 20-25 years, India will be faced with a requirement of 30 lakh CAs. Which makes this decision widely welcomed.