Page 94 - Quick Insights Book 2022
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Chap. 25 – Government Incentives
Key areas where members can assist business • A Chartered Accountant can also represent the
business and liaison if any queries or concerns
Guidance - Proper study and interpretation of the are raised by government authorities during the
incentive policies shall help members to guide the process of approval of incentives.
business to get benefits from relevant incentive policies.
Members can also be helpful in: Accounting - Accounting of the government incentives
is key to accurate reporting of financial statements.
• Determining the eligibility of any business unit Chartered Accountants are experts in guiding the correct
to qualify for any specific policy hosted by the treatment on receipt of any incentive under accounting
government. standards and ICDS. Correct accounting treatment as
• There may be a scenario where the business per applicable accounting standards such IndAS-20/AS-
may have multiple policy options, members can 12 (Accounting for Government Grants) shall be ensured
help in evaluation of the best suited option for the by Chartered Accountant.
business. Certifications - Various policies require certain forms
• Assessment of various licenses, registrations or or formats wherein certification/attestation is required
certifications required. from a Chartered Accountant or Statutory Auditor. These
certificates may relate to Fixed capital investment,
Hand-Holding - Consulting, documentation and employment headcount, turnover, operations cost, Fund
Facilitation is key to obtaining any incentive. utilization certificate etc. Members must responsibly issue
certification in accordance with the Guidance Note on
• Assistance in preparation of project reports,
financial analysis and any other documentation Reports or Certificates for Special Purposes issued by
required by the subject. the Institute of Chartered Accountants of India.
The opportunities for a Chartered Accountant are clearly vast,
• Filling of the incentive claims under any policy
requires financial knowledge and expertise of the scope is massive. A chartered accountant can help in
interpretation of scheme and policy documents. revenue maximization or reducing cost of operations for any
Members can bridge the gap and help entrepreneurs business. Members can add a lot of value to any organization
in filling processes to avoid knowledge gap errors. in this area of work.
Key Resources
Industrial Policies - https://dpiit.gov.in/policies-rules-and-acts/policies/industrial-policy
IT & ESDM Sector Policies - https://www.meity.gov.in/esdm/state-policies
Textile - http://texmin.nic.in/policies
Production Linked Incentives https://www.investindia.gov.in/production-linked-incentives-schemes-india
Quick Insights on Professional Opportunities for Chartered Accountants 81
