NEW DELHI: Practicing chartered accountants (CAs), company secretaries (CSs) and cost and work accountants (CWAs) have expressed unhappiness over bringing them under the prevention of money laundering act (PMLA).
These professionals say they are the easy target of the government unlike lawyers who have been excluded from this law. “When it comes to advocates, goods and services tax (GST) law has a special provision that GST will be paid under reverse charge by the person who is receiving services. Similarly, even for PMLA, advocates have been excluded,” Pune-based CA Pritam Mahure said. He added that this is not appropriate as all professionals should be treated equally in the eyes of law.
Delhi-based CA Rajat Mohan also criticised the government’s move to single out certain professionals. “Government of India isolating select professions over the menace would not be a proper long-term policy framework for the economy. Policymakers must work on an inclusive solution whereby trouble makers, irrespective of their educational background, are reprimanded,” Mohan added.
Meanwhile, another Delhi-based CA, who didn’t want to be quoted, said, “Why only target CA/CS/CWAs. Lawyers and other professionals also do financial transactions on behalf of their clients. Why they have been excluded from this law.”
The government on Thursday said the financial transactions made by chartered accountants, company secretaries and cost accountants on behalf of their clients will now come under PMLA. As per the finance ministry notification, such transactions include buying and selling of any immovable property; managing a client’s money, securities or other assets; managing bank, savings or securities accounts; organising contributions to create, operate or manage companies; creating, operating and managing companies, limited liability partnerships or trusts, and buying and selling entities.