Hyderabad: The ensuing GST regime and ongoing demonetisation are expected to increase tax compliance among all sections but there is severe shortage of tax professionals.
There are just over 3 lakh tax professionals in the country that is not enough to cater to the emerging demand.
People are finding that there are only a few Chartered Accountants (CAs) and tax consultants to seek advice on demonetisation. It is also giving scope for tax consultants to charge exorbitant amount to offer services.
“Hitherto only those from from well-off sections used to approach CAs for tax-realted issues. The situation has changed now. Most of the medium and small traders, salaried class and housewives are approaching us seeking advice. They have become aware that they cannot escape from tax net and they would have to face several problems if they do not comply with tax norms. The demand for CAs has increased significantly with latest developments and it will increase manifold once GST regime begins," said Mr V. Sridhar of V. Sridhar & Co.
“Earlier tax professional used to deal with direct taxes like income tax. With the government widening commercial taxes net and bringing in the GST regime, it gave scope for CAs to offer wide range of services since lakhs of traders will come under tax net and there would be no scope for tax evasion," said tax consultant K.Narasimha Rao.
In this backdrop, the meagre pass percentage of candidates in the CA exam has become a major concern. Around 30,000 candidates from TS and AP appear for exams every year but the pass percentage is less than 5.
“This is somewhat better when compared with earlier years. A decade ago the pass percentage used to be less than 3 per cent, but now it touched 5 per cent,” said Mr Rao.
The current ratio of tax consultants to overall population in the Telugu states is dismal.
