As part of its offers for the World Trade Organisation's services negotiations, India has proposed permitting foreign professionals to provide book-keeping and accounting services.
Foreign firms, however, will be barred from offering such services and the ban on foreigners providing audit services will continue.
The proposal, based on the Institute of Chartered Accountants of India's recommendations, will mean that foreign professionals can do data entry and account preparation jobs. However, they will not be in a position to attest or qualify accounts.
In its offers to the WTO in January this year, India had proposed that in accounting and book-keeping services access would be limited to business visitors and independent professionals. However, they will be required to seek professional indemnity insurance from their home country.
Business visitors will be allowed for trade negotiations or for doing preparatory work for establishing a commercial presence in India. This means that a multinational company planning to set shop in India can bring along accounting professionals for doing the groundwork.
The government plans to allow business visitors to stay for a maximum period of 180 days. They will also be required to possess the necessary educational qualification and a proof of contract may be insisted upon at the time of seeking a visa.
In the case of independent professionals, the government proposes a longer period of stay. It is considering allowing them to stay up to a year, besides prescribing registration with a professional body like ICAI.
ICAI officials said the government was putting in place stiff conditions for the entry of foreign professionals in India, which was in line with the recommendations of the committee constituted by the department of company affairs for the services negotiations.
So far, India has not undertaken any commitments and is not bound under WTO rules to allow foreign accounting professionals to operate in the country.
The ICAI has, in the past, protested against the entry of foreign firms in the country, which it alleges are operating in the guise of providing consulting services.
At present, consulting firms are allowed to operate in the country by registering with the Reserve Bank of India.
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