Financial Daily from THE HINDU group of publications
Tuesday, Apr 09, 2002
Financial Daily from THE HINDU group of publications Tuesday, Apr 09, 2002 |
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Corporate
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Regulatory Bodies & Rulings Accountancy services -- DCA group for foreign cos' entry route review Our Bureau
NEW DELHI, April 8 A WORKING group constituted by the Department of Company Affairs (DCA) has recommended a review of the "alternative routes'' of entry that are available for foreign-based establishments to provide accountancy services in India. In their report, submitted to the Union Law Minister, Mr Arun Jaitley, here on Monday, the group has alleged that a number of foreign firms which have established presence in India as "management consultancy'' firms are circumventing the law of the land by directly or indirectly providing accountancy services. The group was constituted by DCA to come up with suggestions for preparation of an initial "request list in accountancy sector'' in the ongoing trade negotiations under the General Agreement on Trade in Services (GATS). It has recommended that the commercial presence mode should be discouraged as the Indian profession would be handicapped on account of huge infrastructural and capital cost abroad. "If unrestricted commercial presence is allowed to the foreign service suppliers, as a consequence of request made, they may endanger the survival of domestic service provider if one were to go by their organisational and financial strength'', the Committee Chairman, Mr Sunil Bhargava, told Business Line here. It has also held that the movement of natural persons and cross-border mode would be the most preferred option considering the comparative advantages and potential for export of accountancy services. The Government has also been asked to address the non-professional barriers such as visa restrictions and other issues such as linking the Request List with the expeditious consideration of recognition of Indian qualification by other members through the process of Mutual Recognition Agreements (MRA). Further, the process of imposition of limits/quota on the number of suppliers and limitation on the total value of service transaction needed to be initiated, the committee report said.
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