Bare Acts

Appendix No. (1)
[Ref. Sub-section (3) of Section 1]
MINISTRY OF COMMERCE
NOTIFICATION
CHARTERED ACCOUNTANTS
New Delhi, the 1st June, 1949
No. 10-A(4)/49. − In pursuance of sub-section (3) of
Section 1 of the Chartered Accountants Act, 1949 (38 of 1949),
the Central Government is pleased to appoint the 1st day of July
1949, as the date on which the said Act shall come into force.
S. RANGANATHAN,
Joint Secy.
[Published in Part II sub-section (ii) of Section 3 of the
Gazette of India Extraordinary dated 10th August, 2006]
MINISTRY OF COMPANY AFFAIRS
NOTIFICATION
New Delhi, the 8th August, 2006
S.O.1276(E). − In exercise of the powers conferred by
sub-section (2) of Section 1 of the Chartered Accountants
(Amendment) Act, 2006 (9 of 2006), the Central Government
hereby appoints 8th day of August, 2006, as the date on which
Sections 1, 2, 3, 4, 5, 7, 9, 12, 16 except clause (i), 17, 22, 23,
25, 26, 27 and 28 except new Sections 30D and 30E to the
Chartered Accountants Act, 1949 of the said Act, shall come into
force.
[F.No. 5/27/2006-CL-V]
JITESH KHOSLA, Jt. Secy.
[Published in Part II sub-section (ii) of Section 3 of the
Gazette of India Extraordinary dated 5th September, 2006]
NOTIFICATION
New Delhi, the 5th September, 2006
S.O.1440(E). − In exercise of the powers conferred by
sub-section (2) of Section 1 of the Chartered Accountants
(Amendment) Act, 2006 (9 of 2006), the Central Government
hereby appoints the 5th September, 2006, as the date on which
Section 6 of the said Act shall come into force.
[F.No. 5/27/2006-CL.V]
JITESH KHOSLA, Jt. Secy.
91
[Published in Part II sub-section (ii) of Section 3 of the
Gazette of India Extraordinary dated 17th November, 2006]
MINISTRY OF COMPANY AFFAIRS
NOTIFICATION
New Delhi, the 17th November, 2006
S.O. 1985(E). − In exercise of the powers conferred by
sub-section (2) of Section 1 of the Chartered Accountants
(Amendment) Act, 2006 (9 of 2006), the Central Government
hereby appoints 17th day of November, 2006, as the date on
which Sections 8, 10, 11, 13, 14, 15, clause (i) of Section 16,
18, 19, 20, 21, 24, 28 (new Sections 30D and 30E to the
Chartered Accountants Act, 1949) and Section 29 of the said Act,
shall come into force.
[F.No. 5/27/2006-CL-V]
JITESH KHOSLA, Jt. Secy.
[Published in Part II sub-section (ii) of Section 3 of the
Gazette of India Extraordinary dated 30th January, 2012]
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 30th January, 2012
S.O. 190(E). − In exercise of the powers conferred by
sub-section (2) of Section 1 of the Chartered Accountants
(Amendment) Act, 2011 (No. 3 of 2012), the Central
Government hereby appoints the 1st day of February, 2012 as
the date on which the provisions of the said Act shall come into
force.
[F.No. 12/11/2011-P.I.]
MANOJ KUMAR, Jt. Secy.
Appendix No. (2)
Resolutions passed by the Council under clause (iv) of
sub-section (2) of Section 2
(1) “Resolved that a member of the Institute shall be deemed
to be in practice during the period he renders `service
with armed forces’.”
(2) “Pursuant to Section 2(2)(iv) of the Chartered
Accountants Act, 1949, the Council hereby reiterates its
opinion that the service that may be rendered by a
92
Chartered Accountant in practice include the entire range
of Management Consultancy Services.”
(3) “Pursuant to Section 2(2)(iv) of the Chartered
Accountants Act, 1949, the Council hereby reiterates its
opinion that a member shall be deemed to be in practice
if he, in his professional capacity and neither in his
personal capacity nor in his capacity as an employee, acts
as a liquidator, trustee, executor, administrator,
arbitrator, receiver, adviser or representative for costing,
financial or taxation matters or takes up an appointment
made by the Central Government or a State Government
or a Court of law or any other legal authority or acts as a
Secretary unless his employment is on a salary-cum-fulltime basis;
Provided that nothing contained hereinabove, shall apply
to a member who is holding a Certificate of Practice from
the Institute of Cost & Works Accountants of India or the
Institute of Company Secretaries of India or from the Bar
Council or such other bodies, as may be specified in this
behalf, by the Council.”
Appendix No. (3)
[Ref. Clause (iii) of sub-section (1) of Section 4]
[Published in the Gazette of India, Extraordinary
dated the 10th January 1950]
MINISTRY OF COMMERCE
NOTIFICATION
CHARTERED ACCOUNTANTS
New Delhi, the 10th January 1950
No. 63(1)-Law(C.A.)/49. − In pursuance of clause (iii)
of sub-section (1) of Section 4 of the Chartered Accountants Act
1949 (38 of 1949) the Central Government is pleased to specify
the following conditions which a person referred to in the said
Clause shall fulfil in order to be entitled to have his name entered
in the Register of Members of the Institute of Chartered
Accountants of India:−
(1) If he has served as an Articled 1[clerk] under a
Registered Accountant entitled or permitted to train
Articled 2[clerks] under the Auditor’s Certificates Rules,
1932, or under a Member of the Institute of Chartered
93
Accountants of India entitled to train Articled 3[clerks]
under the Chartered Accountants Regulations, 19494 or
partly under such Registered Accountant and partly under
such Member, for a period of 5[three years];
Explanation − Any period of apprenticeship served under
the Regulations for the award of the Government Diploma
in Accountancy and duly registered with Accountancy
Diploma Board, Bombay, shall be reckoned as service as
an Articled 6[clerk] under a Registered Accountant; or
(2) If he has served as an Audit 7[clerk] in the office of any
Registered Accountant, prior to the coming in force of the
Chartered Accountants Act, 1949, or under a practising
Member of the Institute of Chartered Accountants, or
partly under such Registered Accountant and partly under
such practising Member of the Institute of Chartered
Accountants, for a period of six years; or
(3) If he as an officer, not below the rank of an Income-tax
Officer, in the Income-tax Department of the Government
of India, having −
(a) a minimum service of six years in such capacity,
and
(b) reasonable experience in assessment of companies
or experience of a similar nature; or
(4) If he has practised as an Income-tax consultant for a
minimum period of ten years; or
(5) If he has practised as an auditor, having −
(a) a minimum practice of ten years, and
(b) at least 15 units under his audit at the time of his
application for enrolment;
Explanation − In this clause, a “unit” means a company
registered under the Indian Companies Act, 1913 or a Cooperative Society registered under the Co-operative
Societies Act, 1912, or under any corresponding Provincial
Law, or a private firm;
94
(6) If he has served for a minimum period of ten years as a
chief accountant, accountant, or internal auditor or in any
similar other post, by whatever name designated, in a
commercial firm (including a limited liability company)
which has a minimum paid-up capital of Rs. 2 lakhs
and/or a working capital of Rs. 6 lakhs, or in any similar
post which would give equivalent experience under
Government or a local authority.
Explanation − (1) For the purpose of counting the service
referred to in clause (2) one year’s service as Articled
8[clerk] under clause (1) shall be reckoned as two years
of service as an Audit 9[clerk], fractions of a year being
ignored.
(2) For the purpose of computing service or practice
referred to in clauses (3) to (6), every year of service as
Articled 10[clerk] under clause (1) shall be reckoned as
two years of service or practice, as the case may be, and
every year of service under clause (2) shall be reckoned
as one year of service or practice, as the case may be,
fractions of a year being ignored.
S. RANGANATHAN.
Joint Secy.
____________________
1,2,3,6,7,8,9&10 Now known as “Articled Assistant(s)” pursuant to
Chartered Accountants (Amendment) Act, 2006 and came into
force w.e.f. 8th August, 2006
4 Now, the Chartered Accountants Regulations, 1988
5 Now, three and half years, pursuant to Notification No. 1-
CA(7)/92/2006 published in the Gazette of India dated 13th
September, 2006 and came into force w.e.f. 13th September,
2006.
Appendix No. (4)
[Ref. Clause (iv) of sub-section (1) of Section 4]
[Published in Part II Section (ii) of the Gazette of India
dated 8th July 1961]
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
Department of Company Law Administration
New Delhi, dated the 27th June, 1961
NOTIFICATION
CHARTERED ACCOUNTANTS
95
1S.O.No. 1577. − In pursuance of clause (iv) of subsection (1) of Section 4 of the Chartered Accountants Act, 1949
(38 of 1949), and in supersession of the Notification of the
Government of India in the late Ministry of Commerce, No.
63(15)-Law(B)/50 dated the 24th October, 1950 as amended
from time to time, the Central Government hereby specifies the
following conditions which a person referred to in the said clause
shall fulfil in order to entitle him to have his name entered in the
Register of Members of the Institute of Chartered Accountants of
India, namely:−
A. In the case of a person who has passed the examination
for the Government Diploma in Accountancy or an examination
recognized as equivalent thereto by the rules for the award of
the Government Diploma in Accountancy before the
commencement of the Chartered Accountants Act, 1949 −
(1) he shall have been in practice as an auditor or Income
Tax Consultant on the date of commencement of the Act
and shall have at the time of his application for enrolment
−
(a) a minimum practice of ten years to the satisfaction
of the Council of the Institute; and
(b) at least fifteen units under his audit or fifteen
assessees in his charge during the period of twelve
months immediately preceding the date of his
application, or
(2) he shall have been in practice as an auditor on the date of
commencement of the Act and shall have at the time of
his application for enrolment −
(a) a minimum practice of five years; and
(b) at least two 2[public or private companies] with
limited liability under his audit during each of at
least four of the said five years.
B. In the case of a person who has not passed one of the
examinations mentioned in paragraph A, he shall have been in
practice as an auditor or Income Tax Consultant on the date of
96
commencement of the Act and shall have at the time of
application for enrolment, either −
(1) (a) a minimum practice of ten years to the satisfaction
of the Council of the Institute, provided that he
shall have done at least ten audits of 3
[public or
private companies] with limited liability, at least
one such audit having been done in each one of
any six years in the said ten years, and
(b) at least fifteen units under his audit or fifteen
assessees in his charge during the period of twelve
months immediately preceding the date of his
application, provided that the units shall include
two companies with limited liability or the income
of the assessees shall exceed Rs. 5 lakhs, as the
case may be, or
(2) (a) a minimum practice of five years as an auditor;
and
(b) at least two 4[public or private companies] with
limited liability with a total paid-up capital or at
least Rs. 3 lakhs under his audit during each of at
least four of the said five years.
Explanation − (1) (i) Any service as chief accountant,
accountant or internal auditor or in any other similar post,
by whatever name designated, in a commercial firm
(including a limited liability company) which has a
minimum paid-up capital of Rs. 2 lakhs or working capital
of Rs. 6 lakhs, or in any similar post under Government or
a local authority, which, in the opinion of the Council of
the Institute, would give equivalent experience, shall be
set off against minimum number of years of practice
required by paragraphs A(1)(a) and B(1)(a) above.
(ii) For the purpose of computing practice referred to
in paragraph A(1), every year of service as Articled
5[Clerk] either under a Registered Accountant entitled or
permitted to train Articled 6[Clerks] under the Auditor’s
Certificates Rules, 1932, or under a member of the
Institute of Chartered Accountants of India entitled to
train Articled 7[Clerks] under the Chartered Accountants
Regulations, 19498, or partly under such Registered
97
Accountant and partly under such member shall be
reckoned as two years of practice, and every year of audit
service rendered under a Registered Accountant or a
practising member of the Institute of Chartered
Accountants of India or partly under such Registered
Accountant and partly under such practising member of
the Institute shall be reckoned as one year of practice,
fractions of a year being ignored, and for this purpose,
any period of apprenticeship served under the Regulations
for the award of the Government Diploma in Accountancy
and duly registered with the Accountancy Diploma Board,
Bombay, shall be reckoned as service as an Articled
9[Clerk] under a Registered Accountant.
Explanation (2) − A “unit” means a company registered
under the Indian Companies Act, 1913, or the Companies
Act, 1956, or a Co-operative Society registered under the
Co-operative Societies Act, 1912, or a company or Cooperative Society registered under any corresponding
State Law, or a firm.
Explanation (3) − For the purpose of computing practice,
credit shall be given for any practice by an auditor or
Income Tax Consultant irrespective of whether such
practice was inside or outside any former Part `B’ State
or any former Acceding State.
B.S. MANCHANDA
Joint Secretary to the Government of India.
[Published in Part II Section 3(ii) of the Gazette of India
dated 6th October, 1973]
Government of India
MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS
Department of Company Affairs
Shastri Bhawan, 5th Floor, “A” Wing, Dr. Rajendra Prasad Road,
New Delhi – 1, the 25th September, 1973
(As modified by Notification No. S.O. 2002 dated 5th June, 1979
of the Department of Company Affairs)
NOTIFICATION
Chartered Accountants
S.O.2860. − In pursuance of clause (iv) of sub-section
(1) of Section 4 of the Chartered Accountants Act, 1949 (38 of
1949) and in partial modification of the notification of the
Government of India in the late Ministry of Commerce and
98
Industry (Department of Company Law Administration) No.
S.O.1577 dated the 27th June, 1961, the Central Government
hereby specifies that a person referred to in the said clause shall,
in order to entitle him to have his name entered in the Register
of Members of the Institute of Chartered Accountants of India
have to fulfil only the following conditions, namely, that he was
in practice as an auditor in any Part B State on the
commencement of the said Act in that State and is in practice as
an auditor in any State or Union Territory at the time of his
application for enrolment (whether or not he ceased to be in
practice as an auditor during any portion of the intervening
period).
Explanation − For the removal of doubts, it is hereby
declared that a person who fulfils the conditions specified in this
notification shall be entitled to have his name entered in the
Register of Members of the Institute of Chartered Accountants of
India notwithstanding that he does not fulfill all or any of the
conditions specified in the notification of the Government of India
in the late Ministry of Commerce and Industry (Department of
Company Law Administration) No. S.O.1577 dated the 27th June,
1961.
(F.No. 7/14/69-IGC/2/7/79 CLV)
R.K. Talwar
Under Secretary to the Government of India
____________________
1 Substituted for the following Notification:−
[Published in Part I Section 1 of the Gazette of India
dated the 28th October, 1950]
MINISTRY OF COMMERCE
NOTIFICATION
CHARTERED ACCOUNTANTS
New Delhi, the 24th October, 1950
[As amended by Notifications Nos. 63(15)-ICL(A)/50 dated the
11th September 1951 and 61(2)-ICA/53 dated the 19th December, 1954
of the Ministry of Finance, Department of Economic Affairs, Government
of India.]
No. 63(15)-Law(B)/50. − In pursuance of clause (iv) of subsection (1) of Section 4 of the Chartered Accountants Act, 1949
(XXXVIII of 1949), the Central Government is pleased to specify the
following conditions which a person referred to in the said clause shall
fulfil in order to entitle him to have his name entered in the Register of
Members of the Institute of Chartered Accountants of India:−
A. In the case of a person who has passed the examination for the
Government Diploma in Accountancy or an examination
99
recognized as equivalent thereto by the rules for the award of
the Government Diploma in Accountancy before the
commencement of the Chartered Accountants Act, 1949 −
(1) he shall have been in practice as an auditor on the date
of the commencement of the Act, shall have continued
in practice thereafter and shall have at the time of his
application for enrolment −
(a) a minimum practice of ten years; and
(b) at least 15 units, including a minimum of five
public companies with limited liability under his
audit.
Explanation − (i) Any service as a chief accountant,
accountant or internal auditor or in any other similar post, by
whatever name designated, in a commercial firm (including a
limited liability company) which has a minimum paid-up capital
of Rs. 2 lakhs or working capital of Rs. 6 lakhs, or in any similar
post under Government or a local authority, which, in the
opinion of the Council of the Institute, would give equivalent
experience, shall be set off against the practice mentioned in
this clause.
(ii) For the purpose of computing service or practice,
referred to in this clause, every year of service as Articled Clerk
either under a Registered Accountant entitled or permitted to
train Articled Clerks under the Auditor’s Certificates Rules 1932,
or under a member of the Institute of Chartered Accountants of
India entitled to train Articled Clerks under the Chartered
Accountants Regulations, 1949, or partly under such Registered
Accountants and partly under such member shall be reckoned as
two years of service or practice, as the case may be, and every
year of audit service rendered under a Registered Accountant or
a practising member of the Institute of Chartered Accountants of
India or partly under such Registered Accountant and partly
under such practising member of the Institute shall be reckoned
as one year of service or practice, as the case may be, fractions
of a year being ignored.
(iii) Any period of apprenticeship served under the
Regulations for the award of the Government Diploma in
Accountancy and duly registered with the Accountancy Diploma
Board, Bombay, shall be reckoned as service as an Articled Clerk
under a Registered Accountant; or
(2) he shall have been in practice on the date of the
commencement of the Act and shall have at the time of
his application for enrolment −
100
(a) a minimum practice of five years; and
(b) at least five public companies with limited
liability with a total paid up capital of Rs. 20
lakhs under his audit during each of the said five
years.
B. In the case of a person who has not passed one of the
examinations mentioned in paragraph A, he shall have been in
practice on the date of commencement of this Act and shall
have at the time of his application for enrolment, either −
(a) (i) a minimum practice of ten years; and
(ii) at least fifteen units, including a minimum of five public
companies with limited liability with a total paid–up
capital of Rs. 20 lakhs for all the units put together,
under his audit; or
(b) (i) a minimum practice of five years; and
(ii) at least five public companies with limited liability with a
total paid-up capital of Rs. 20 lakhs under his audit
during each of the said five years.
Explanation − (1) In paras A and B above, a “unit” means a
company registered under the Indian Companies Act, 1913, or a
Co-operative Society registered under the Co-operative Societies
Act, 1912, or a Company, Co-operative Society registered under
any corresponding State Law, or a private firm.
Explanation − (2) For the purpose of computing practice, credit
shall be given for any practice by an auditor irrespective of
whether such practice was inside or outside Part `B’ State or
any former Acceding State.
S. RANGANATHAN
Joint Secretary to the Government of India
2,3&4 Substituted for the words “public companies” by Notification No.
S.O. dated 26th February, 1966 of the Government of India,
Ministry of Law, Department of Company Affairs.
5,6,7&9 Now known as “Articled Assistant(s)” pursuant to Chartered
Accountants (Amendment) Act, 2006 and came into force w.e.f.
8th August, 2006.
8 Now, the Chartered Accountants Regulations, 1988.
101
[The Resolution passed by the Council and given in
Appendix No. (5) is no longer in operation in view of
resolution subsequently passed by the Council at its 188th
meeting held on 8th-10th December, 1997 given
thereunder]
Appendix No. (5)
Resolution passed by the Council under clause (v) of
sub-section (1) of Section 4
“Resolved that the examinations and training of the
following institutions, organizations etc. in the relevant countries
be recognized under Section 4(1)(v) of the Chartered
Accountants Act, 1949, as being equivalent to the examination
and training prescribed for the members of the Institute:−
1. The Institute of Chartered Accountants of Ceylon.
2. The Public Accountants’ and Auditors’ Board of
South Africa.
3. The Institute of Chartered Accountants of Pakistan
4. The Registered Accountants of Burma, and
5. The Institute of Chartered Accountants in Australia
Further resolved that a person who has passed the Final
R.A. Examination held under the Burma Auditors’ Certificate
Rules and who has either undergone the requisite training as an
articled/audit clerk or has been practising as Public Accountant
and Auditor, but who cannot get himself enrolled as a Registered
Accountant of Burma, for the reason only that he is a permanent
resident of India, would also be eligible for membership of the
Institute.
Provided that under the proviso to Section 4(1)(v), the
following further conditions be prescribed in the case of a person
not permanently residing in India:
(i) That such person be required to reside in India to practise
the profession of Accountancy or to serve as an assistant
in a Chartered Accountant’s office in India; and
(ii) That such person shall not be eligible for membership of
the Council or the Regional Councils nor have a right to
vote in elections under the Chartered Accountants Act,
1949 and the Regulations framed thereunder; and
102
(iii) That the membership of the Institute will cease if and
when the person concerned ceases to reside or practise in
India”.
Resolution passed by the Council at its 188th meeting held
on 8th-10th December, 1997
"Resolved that -
By virtue of powers vested under Regulation 205 of the
Chartered Accountants Regulations, 1988, the Council of the
Institute of Chartered Accountants of India hereby orders that
the period of training undergone in the respective countries
under the bye-laws/regulations of one or more of the following
institutes, namely -
1. The Institute of Chartered Accountants of Ceylon.
2. The Public Accountants' and Auditors' Board of
South Africa.
3. The Institute of Chartered Accountants of Pakistan.
4. The Registered Accountants of Burma, and
5. The Institute of Chartered Accountants in
Australia.
be recognised only in the case of persons who had left India
before 8th December, 1997 for the sole purpose of pursuing the
Chartered Accountancy Course in any of the aforementioned
countries provided :
(a) such persons return to India, register with the Institute
on or before 31st March, 1999 after fulfilling the requirements of
the Chartered Accountants Regulations, 1988 for admission to
articleship and producing satisfactory proof that they had
completed training - wholly or partly - in the respective country
and undergo practical training
i) for a minimum additional period of 12 months in
entirety in the case of those who have already
completed the prescribed period of training not
being less than three years in the respective
country; or
ii) for a minimum period of 12 months in entirety in
the case of those who are not covered under (a)
103
above but have completed 24 months of training
or more in the respective country; or
iii) for the balance period of training in entirety as
required under the Chartered Accountants
Regulations, 1988 in the case of those who have
completed less than 24 months of training in the
respective country;
and
(b) appear in and qualify both the Intermediate and Final
Examinations of the Institute in their entirety under the
Chartered Accountants Regulations, 1988 irrespective of whether
they had passed the corresponding examinations, - wholly or
partly - under the bye-laws/regulations of the aforementioned
Institutions, organisations etc.
[The Resolution passed by the Council and given in
Appendix No. (6) is no longer in operation in view of
resolution subsequently passed by the Council at its 182nd
meeting held on 3rd & 4th September, 1996 given
thereunder]
Appendix No. (6)
Resolution passed by the Council under clause (v) of
sub-section (1) of Section 4
“Resolved that the examinations and […….]1 training in
the United Kingdom of the following four Institutes (formerly six)
mentioned in Rule 7 of the Auditor’s Certificates Rules, 1932, be
recognized by the Council under Section 4(1)(v) of the Act as
being equivalent to the examination and training prescribed for
the members of this Institute:-
(a) The Institute of Chartered Accountants in England
and Wales;
(b) The Institute of Chartered Accountants of
Scotland;
(c) The Institute of Chartered Accountants in Ireland;
(d) The Society of Incorporated Accountants and
Auditors, London.
104
Provided that under the proviso 4(1)(v), the following
further conditions be prescribed in the case of persons not
permanently residing in India:
(i) That such persons be required to reside in India to
practise the profession of Accountancy or to serve as an
assistant in a Chartered Accountant’s office in India; and
2[ ……….]
(ii) That such person be not eligible for membership of the
Council or the Regional Councils or to the right of voting in
elections under the Chartered Accountants Act, 1949; and
(iii) That the membership of the Institute will cease if and
when the persons concerned ceases to reside or practise in
India; and
(iv) That the Board of Trade in the United Kingdom accords
the right to the members of this Institute to practise the
profession of Accountancy in the United Kingdom in respect of
the audit of public companies as defined in the (U.K.) Companies
Act, 1948.”
Resolution passed by the Council at its 182nd meeting held
on 3rd & 4th September, 1996
“Resolved that –
By virtue of powers vested under Regulation 205 of the
Chartered Accountants Regulations, 1988, the Council of the
Institute of Chartered Accountants of India hereby orders that
the period of training undergone in the United Kingdom and/or
Ireland under the bye-laws/regulations of one of more of the
following Institutes, namely –
(a) The Institute of Chartered Accountants of England
and Wales;
(b) The Institute of Chartered Accountants of
Scotland;
(c) The Institute of Chartered Accountants of Ireland;
and
(d) The Society of Incorporated Accountants and
Auditors, London
105
be recognized only in the case of persons who had left India
before 8th December, 1995 for the sole purpose of pursuing the
Chartered Accountancy Course in the United Kingdom and/or
Ireland provided:
(a) such persons return to India, register with the
Institute on or before 31st March, 1997 after fulfilling the
requirements of the Chartered Accountants Regulations, 1988 for
admission to articleship and producing satisfactory proof that
they had completed training – wholly or partly – in the United
Kingdom and/or Ireland and undergo practical training
(i) for a minimum additional period of 12 months in
entirety in the case of those who have already
completed the prescribed period of training not
being less than three years in the United Kingdom
and/or Ireland; or
(ii) for a minimum period of 12 months in entirety in
the case of those who are not covered under (a)
above but have completed 24 months of training
or more in the United Kingdom and/or Ireland; or
(iii) for the balance period of training in entirety as
required under the Chartered Accountants
Regulations, 1988 in the case of those who have
completed less than 24 months of training in the
United Kingdom and/or Ireland;
and
(b) appear in and qualify both the Intermediate and
Final Examinations of the Institute in their entirety under the
Chartered Accountants Regulations, 1988 irrespective of whether
they had passed the corresponding examinations – wholly or
partly – under the bye-laws/regulations of the aforementioned
Institute(s).
Further Resolved that the effect and application of the
aforementioned Order/Resolution shall cease to operate effective
from 1st April, 1997.”
____________________
1 The Council has since decided to omit the word “practical”.
2 The following clause has been deleted:-
106
“(ii) That the recognition be for a period of five years upto 31st
March, 1958; and.”
Appendix No. (7)
Resolutions passed by the Council under the proviso to
clause (v) of sub-section (1) of Section 4
(1) “Resolved that the Membership of a person covered by
proviso to Section 4(1)(v) of the Chartered Accountants
Act, 1949, shall be subject to the condition that the
person in question has a place of business in India either
in his own charge or in charge of a Member of the
Institute.”
* * * * *
(2) Criteria laid down regarding “residence” applicable to
cases falling under the proviso to Section 4(1)(v):
(a) if a person is in India in a year for a period or
periods amounting in all to 182 days or more; or
(b) if he maintains or causes to be maintained for him
a dwelling place in India for a period or periods
amounting in all to 182 days or more in a year and
has been in India for 90 days or more in that year.
Appendix No. (8)*
[Ref. sub-section (3) of Section 4]
[Published in the Gazette of India, Extraordinary Part III, Section 4
dated 25th February, 2011
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th February, 2011
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/138/2011. - Whereas the Chartered
Accountants Act, 1949 (No. 38 of 1949) has been amended by the
Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006);
107
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under
sub-section (3) of section 4 of the said Act, the fee for entry of
names in the Register;
Now, therefore, in exercise of the powers conferred by said
sub-section (3) of section 4 of the said Act, the Council hereby
determines that, -
with effect from the 1st day of April 2011, the fee payable by
every person eligible to have his name entered in the Register
under section 4 of the said Act shall be rupees one thousand two
hundred only.
T. KARTHIKEYAN, Secy.
[ADVT III/4/104/10/Exty.]
____________________
*Substituted for the following Notification:-
[Published in the Gazette of India, Extraordinary Part III,
Section 4 dated 5th March, 2008
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th March, 2008
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/109/2008. − Whereas the Chartered Accountants
Act, 1949 (38 of 1949) has been amended by the Chartered
Accountants (Amendment) Act, 2006 (9 of 2006);
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under subsection (3) of section 4 of the said Act, the fee for entry of names in the
Register;
Now, therefore, in exercise of the powers conferred by said subsection (3) of section 4 of the said Act, the Council hereby determines
that,-
with effect from the 1st day of April, 2008, the fee payable by
every person eligible to have his name entered in the Register under
section 4 of the said Act shall be rupees one thousand only.
Dr. Ashok Haldia, Secy.
[ADVT.III/4/104/2007/Exty.]
108
Appendix No. (9)*
[Ref. sub-section (3) of Section 5]
[Published in the Gazette of India, Extraordinary Part III, Section 4
dated 25th February, 2011
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 25th February, 2011
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/139/2011. - Whereas the Chartered
Accountants Act, 1949 (No. 38 of 1949) has been amended by the
Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006);
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under
sub-section (3) of section 5 of the said Act, the fee for entry of
names in the Register as a fellow;
Now, therefore, in exercise of the powers conferred by said
sub-section (3) of section 5 of the said Act, the Council hereby
determines that, -
with effect from the 1st day of April 2011, the fee payable by
a member for entry in the Register as a fellow of the Institute shall
be rupees one thousand eight hundred only.
T. KARTHIKEYAN, Secy.
[ADVT III/4/104/10/Exty.]
____________________
*Substituted for the following
[Published in the Gazette of India, Extraordinary, Part III, Section 4
dated 5th March, 2008]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th March, 2008
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/110/2008. – Whereas, the Chartered Accountants
Act, 1949 (38 of 1949) has been amended by the Chartered
Accountants (Amendment) Act, 2006 (9 of 2006);
And, whereas, the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under subsection (3) of section 5 of the said Act, the fee for entry of names in the
Register as a fellow;
109
Now, therefore, in exercise of the powers conferred by said
subsection (3) of section 5 of the said Act, the Council hereby
determines that,-
with effect from the 1st day of April, 2008, the fee payable by a
member for entry in the Register as a fellow of the Institute shall be
rupees one thousand five hundred only.
Dr. Ashok Haldia, Secy.
[ADVT.III/4/104/2007/Exty.]
Appendix No. (10)*
[Ref. sub-section (2) of Section 6]
[Published in the Gazette of India, Extraordinary Part III, Section 4
dated 25th February, 2011
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 25th February, 2011
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/140/2011. - Whereas the Chartered
Accountants Act, 1949 (No. 38 of 1949) has been amended by the
Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006);
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under
sub-section (2) of section 6 of the said Act, the fee payable for a
certificate of practice;
Now, therefore, in exercise of the powers conferred by said
sub-section (2) of section 6 of the said Act, the Council hereby
determines that, -
with effect from the 1st day of April 2011, the fee payable by
a member for his certificate of practice shall be rupees two
thousand only:
110
Provided that such fee for a member, who has attained the
1
[age of 60 years] as on the 1st day of April of the relevant year,
shall be rupees one thousand five hundred only.
T. KARTHIKEYAN, Secy.
[ADVT III/4/104/10/Exty.]
____________________
*Substituted for the following
[Published in the Gazette of India, Extraordinary, Part III, Section 4
dated 5th March, 2008]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th March, 2008
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/111/2008. – Whereas, the Chartered Accountants
Act, 1949 (38 of 1949) has been amended by the Chartered
Accountants (Amendment) Act, 2006 (9 of 2006);
And, whereas, the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under subsection (2) of section 6 of the said Act, the fee payable for a certificate
of practice;
Now, therefore, in exercise of the powers conferred by said
subsection (2) of section 6 of the said Act, the Council hereby
determines that,-
with effect from the 1st day of April, 2008, the annual fee
payable by a member for his certificate of practice shall be rupees one
thousand six hundred only:
Provided that such fee for a member, who has attained the age
of 65 years as on the 1st day of April of the relevant year, shall be
rupees one thousand two hundred only.
Dr. Ashok Haldia, Secy.
[ADVT III/IV/104/2007/Exty.]
Appendix No. (11)
[Ref. Proviso to Section 7]
(1) It was agreed that the Institutes previously recognised2
under the Auditor’s Certificates Rules, 1932, be

1 Substituted for the words and figure “age of 65 years” by Notification No.
1-CA(7)/146/2013 dated 28th March, 2013, published in Part III Section 4
of the Gazette of India, Extraordinary, dated 28th March, 2013
111
recognized for the purposes of Section 7 for the use of
letters, F.S.A.A., etc.
* * * * *
(2) The Council decided that letters or description in respect
of membership of bodies other than Accountancy
Institutes can be used provided such use does not
amount to the use of designation and in the case of
Accountancy Institutes prior recognition of the Council in
this behalf is necessary. It was also decided that in
respect of Accountancy Institutes which are recognized
and in respect of Institutes other than Accountancy
Institutes the word London in brackets may be allowed to
be added provided that in each case the respective
Institutes had permitted such addition.
* * * * *
(3) The Council also decided that the Institute of Cost and
Works Accountants is not an Accountancy Institute within
the meaning of Section 7 and therefore there was no bar
to the use of these letters by the members of that
Institute, if they happen to be our members.
[The Notifications given in Appendix No. (12) were in
operation until rules made by the Central Government
under clause (a) of sub-section (2) of Section 29A were
published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (1) dated 5th September, 2006 and
came into effect from that date]

2 List of Institutes and Societies recognized under the Auditor’s
Certificate Rules, 1932:
(1) The Institute of Chartered Accountants in England and
Wales;
(2) The Society of Incorporated Accountants and Auditors,
London;
(3) The Society of Accountants in Edinburgh;
(4) The Institute of Accountants and Actuaries in Glasgow;
(5) The Society of Accountants in Aberdeen; and
(6) The Institute of Chartered Accountants in Ireland.
112
Appendix No. (12)
[Published in Part II Section 3 of the Gazette of India,
dated the 22nd March, 1952]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
New Delhi, dated the 19th March, 1952
NOTIFICATION
CHARTERED ACCOUNTANTS
No. 73(1)-ICA/52-A. − In pursuance of clause (a) of
sub-section (2) of Section 9 of the Chartered Accountants Act,
1949 (XXXVIII of 1949), the Central Government hereby
specifies that elections to the Council under the said clause shall
be held in the manner prescribed in Chapter V of the Chartered
Accountants Regulations, 1949.1
B.K. KAUL
Deputy Secretary to the Government of India
____________________
1 Now Chapter VI of the Chartered Accountants Regulations, 1964
as replaced by the Chartered Accountants Regulations, 1988.
A[Published in Part II, Sub. Sec.(ii) of Sec.3 of
Gazette of India No. 1(8)/88-IGC
GOVERNMENT OF INDIA
Ministry of Industry
Department of Company Affairs
Company Law Board
310, B-1 Block, Paryavaran Bhavan,
C.G.O. Complex, Lodhi Estate,
New Delhi-110 003.
22nd April, 1988
NOTIFICATION
S.O. 1628. − In pursuance of clause (a) of Sub-Section (2) of
section 9 of the Chartered Accountants Act, 1949 (38 of 1949) and in
supersession of the notification of the Government of India in the
Ministry of Law, Justice and Company Affairs (Department of Company
Affairs), No. S.O.1682, dated the 13th April 1973 the Central
Government hereby specifies the following five regional constituencies
for the purposes of elections to the Council of the regional constituencies
for the purposes of elections to the Institute of Chartered Accountants of
India under the said clause, namely:
1. Western Region −
The States of Gujarat, Maharashtra and Goa and the Union
Territories of Daman & Diu and Dadra & Nagar Haveli.
2. Southern Region −
113
The States of Andhra Pradesh, Kerala, Karnataka and Tamil
Nadu and the Union Territories of Pondicherry and the
Lakshadweep Islands.
3. Eastern Region −
The States of Assam, Meghalaya, Nagaland, Orissa, West
Bengal, Manipur, Tripura, Sikkim, Arunachal Pradesh and
Mizoram and the Union Territory of Andaman & Nicobar Islands.
4. Central Region −
The States of Uttar Pradesh, Bihar, Madhya Pradesh and
Rajasthan.
5. Northern Region −
The States of Haryana, Himachal Pradesh, Jammu & Kashmir
and Punjab and Union Territories of Delhi and Chandigarh.
(DR. GULAB SINGH)
Under Secretary to the Government of India
____________________
A Substituted for the following
[Published in Part II sub-section (ii) of
Section 3 of the Gazette of India dated 16th June, 1973]
GOVERNMENT OF INDIA
MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS
(Department of Company Affairs)
New Delhi, dated the 13th April, 1973
NOTIFICATION
CHARTERED ACCOUNTANTS
S.O 1682. − In pursuance of clause (a) of sub-section (2) of
Section 9 of the Chartered Accountants Act, 1949, (38 of 1949) and in
supersession of the notification of the Government of India in the late
Ministry of Commerce and Industry (Department of Company Law
Administration) No. S.O. 275, dated the 12th March, 1958 (as amended
from time to time)* the Central Government hereby specifies the
following five regional constituencies for the purposes of elections to the
Council of the Institute of Chartered Accountants of India under the said
clause, namely
Western Region −
1. The States of Gujarat, Maharashtra and the Union Territories of
Goa, Daman & Diu and Dadra & Nagar Haveli.
Southern Region −
2. The States of Andhra Pradesh, Kerala, Mysore, Tamil Nadu and
the Union Territories of Pondicherry and the Laccadive, Minicoy
and Amindivi Islands.
Eastern Region −
3. The States of Assam, Meghalaya, Nagaland, Orissa, West
Bengal, Manipur, Tripura and Sikkim and the Union Territories of
Arunachal Pradesh, Mizoram and the Andaman & Nicobar
Islands.
Central Region −
114
4. The States of Uttar Pradesh, Bihar, Madhya Pradesh and
Rajasthan.
Northern Region −
5. The States of Haryana, Himachal Pradesh, Jammu & Kashmir
and Punjab and the Union Territories of Delhi and Chandigarh.
(F.7/16/73-IGC)
R.K. TALWAR
Under Secretary to the Government of India
ii[Published in Part II Sub-section 3 of the Gazette of India
dated 22nd March, 1958]
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
(DEPARTMENT OF COMPANY LAW ADMINISTRATION)
New Delhi, dated the 12th March, 1958*
NOTIFICATION
CHARTERED ACCOUNTANTS
No. 3(64)/Inst/56. − In pursuance of clause (a) of sub-section
(2) of Section 9 of the Chartered Accountants Act, 1949, (38 of 1949),
and in supersession of the notification of the Government of India in the
Ministry of Finance No. 73(1)-ICA/52, dated the 19th March, 1952, the
Central Government hereby specifies* the following five regional
constituencies for purposes of elections to the Council under the said
clause, namely:
1. The State of Gujarat and Maharashtra and the Union Territory of
Goa, Daman and Diu.
2. The States of Andhra Pradesh, Kerala, Mysore and Tamil Nadu
and the Union Territories of Pondicherry and the Laccadive,
Minicoy and Amindivi Islands.
3. The States of Assam, Nagaland, Orissa and West Bengal and the
Union Territories of Manipur, Tripura and the Andaman and
Nicobar Islands.
4. The States of Uttar Pradesh, Behar, Madhya Pradesh and
Rajasthan.
5. The States of Harayana, Himachal Pradesh, Jammu and Kashmir
and Punjab and the Union Territories of Delhi and Chandigarh.
Deputy Secretary to the Government of India
*As modified by Government Notification issued subsequently
from time to time.
Appendix No. (13)*
[Ref. sub-section (4) of Section 19]
[Published in the Gazette of India, Extraordinary Part III, Section 4
dated 25th February, 2011
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
115
New Delhi, the 25th February, 2011
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/141/2011. - Whereas the Chartered
Accountants Act, 1949 (No. 38 of 1949) has been amended by the
Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006);
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under
sub-section (4) of section 19 of the said Act, the annual
membership fee payable by every member;
Now, therefore, in exercise of the powers conferred by said
sub-section (4) of section 19 of the said Act, the Council hereby
determines that, -
with effect from the 1st day of April 2011, the annual
membership fee payable by a member shall be as under:
Associate Member - rupees eight hundred only
Fellow Member - rupees two thousand two hundred only
Provided that such fee for a member, who has attained the
1
[age of 60 years] as on the 1st day of April of the relevant year,
shall pay such fee as under:
Associate Member - rupees six hundred only
Fellow Member - rupees one thousand six hundred only
T. KARTHIKEYAN, Secy.
[ADVT III/4/104/10/Exty.]
____________________
*Substituted for the following
[Published in the Gazette of India, Extraordinary, Part III, Section 4
dated 5th March, 2008]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th March, 2008
(Chartered Accountants)

1 Substituted for the words and figure “age of 65 years” by Notification No.
1-CA(7)/146/2013 dated 28th March, 2013, published in Part III Section 4
of the Gazette of India, Extraordinary, dated 28th March, 2013
116
No. 1-CA(7)/112/2008 − Whereas, the Chartered Accountants
Act, 1949 (38 of 1949) has been amended by the Chartered
Accountants (Amendment) Act, 2006 (9 of 2006);
And, whereas, the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under subsection (4) of section 19 of the said Act, the annual membership fee
payable by every member;
Now, therefore, in exercise of the powers conferred by said
subsection (4) of section 19 of the said Act, the Council hereby
determines that, −
with effect from the 1st day of April, 2008, the annual
membership fee payable by a member shall be as under:
Associate member - rupees six hundred only
Fellow member - rupees one thousand eight hundred only;
Provided that a member, who has attained the age of 65 years
as on the 1st day of April of the relevant year, shall pay such fee as
under:
Associate member - rupees four hundred fifty only
Fellow member - rupees one thousand three hundred only;
Dr. Ashok Haldia, Secy.
[ADVT III/4/104/2007/Exty.]
Appendix No. (14)*
[Ref. sub-section (3) of Section 20]
[Published in the Gazette of India, Extraordinary Part III, Section 4
dated 25th February, 2011
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 25th February, 2011
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/142/2011. - Whereas the Chartered
Accountants Act, 1949 (No. 38 of 1949) has been amended by the
Chartered Accountants (Amendment) Act, 2006 (No. 9 of 2006);
And whereas the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under
sub-section (3) of section 20 of the said Act, the additional fee for
entering again the name of a member in the Register;
117
Now, therefore, in exercise of the powers conferred by said
sub-section (3) of section 20 of the said Act, the Council hereby
determines that, -
with effect from the 1st day of April 2011, the additional fee,
which shall be payable along with arrears of annual fee and
entrance fee by such member, shall be rupees one thousand two
hundred only.
T. KARTHIKEYAN, Secy.
[ADVT III/4/104/10/Exty.]
____________________
*Substituted for the following
[Published in the Gazette of India, Extraordinary, Part III, Section 4
dated 5th March, 2008]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 4th March, 2008
(CHARTERED ACCOUNTANTS)
No. 1-CA(7)/113/2008. − Whereas, the Chartered Accountants
Act, 1949 (38 of 1949) has been amended by the Chartered
Accountants (Amendment) Act, 2006 (9 of 2006);
And, whereas, the Council of the Institute of Chartered
Accountants of India has been empowered to determine, under subsection (3) of section 20 of the said Act, the additional fee for entering
again the name of a member in the Register;
Now, therefore, in exercise of the powers conferred by said
subsection (3) of section 20 of the said Act, the Council hereby
determines that,-
with effect from the 1st day of April, 2008, the additional fee,
which shall be payable along with arrears of annual fee and entrance fee
by such member, shall be rupees one thousand only.
Dr. Ashok Haldia, Secy.
[ADVT III/4/104/2007/Exty.]
Appendix No. (15)
[Ref. sub-section (1) of Section 21]
[Published in the Gazette of India, Extraordinary, Part III
Section 4, dated 19th August, 2008]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA,
NEW DELHI
118
NOTIFICATION
New Delhi, the 19th August, 2008
No. 1-CA(7)/121/2008: In exercise of the powers
conferred by sub-section (1) of section 21 of the Chartered
Accountants Act, 1949 (38 of 1949), and in 1supersession of the
Notification No. 1-CA(7)/104/2007 dated 8th October, 2007, the
Council of the Institute of Chartered Accountants of India hereby
designates CA. Smt. Vandana Nagpal, Senior Deputy Secretary
of the Institute as the Director (Discipline) to head the
Disciplinary Directorate and for making investigations in respect
of any information or complaint received by it. She shall perform
such functions as are assigned to her under the said Act and the
rules and regulations framed thereunder.
T. Karthikeyan
Director & Acting Secretary
____________________
1 Substituted for the following Notification:-
[Published in the Gazette of India, Extraordinary, Part III Section 4,
dated 8th October, 2007]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NOTIFICATION
New Delhi, the 8th October, 2007
No. 1-CA(7)/104/2007. − In exercise of the powers conferred by
sub-section (1) of section 21 of the Chartered Accountants Act, 1949
(38 of 1949), the Council of the Institute of Chartered Accountants of
India hereby establishes the Disciplinary Directorate which shall be
headed by Shri T. Karthikeyan, the Director of the Institute for making
investigations in respect of any information or complaint received by it.
He shall be the Director (Discipline) to perform such functions as are
required under the said Act.
Dr. ASHOK HALDIA, Secy.
[No. ADVT.-III/IV/Exty./104/07]
Appendix No. (16)
[Ref. Proviso to sub-section (1) of Section 27]
(1) Definition of office. − “A place where a name-board is
fixed or where such place is mentioned in the letter-head or any
other documents as a place of business.”
* * * * *
119
(2) The Council decided with regard to the use of the nameboard that there will be no bar to the putting up of a name-board
in the place of residence of a member with the designation of
Chartered Accountant, provided it is a name-plate or a nameboard of an individual member and not of the Firm.
(3) “Resolved that the requirement of Section 27 of a
member being in charge of an office of a Chartered Accountant
or a firm of such Chartered Accountants shall be satisfied only if
the member is actively associated with such office. Such
association shall be deemed to exist if the member resides in the
place where the office is situated for a period of not less than
182 days in a year or if he attends the said office for a period of
not less than 182 days in a year or in such other circumstances
as, in the opinion of the Executive Committee, establish such
active association.
Further resolved that the expression `member’ in the
contest of the above resolution shall mean, where more than one
member is designated as in charge of an office, then, any such
member and in other cases more than one member where a
change in the designated member in charge of an office takes
place during the year.”
Appendix No. (17)*
Resolution passed by the Council under clause (4) of
Part I of the First Schedule to the Act
“Resolved pursuant to the power conferred under clause
(4) of Part I of the First Schedule to the Chartered Accountants
Act, 1949 that, the Council recognizes membership of the
following bodies for the purpose of permitting partnerships by
Indian Nationals abroad as are referred to in that clause:−
The Institute of Chartered Accountants of India;
The Institute of Chartered Accountants of Ceylon;
The Institute of Chartered Accountants in England and
Wales;
The Institute of Chartered Accountants of Scotland;
The Institute of Chartered Accountants in Ireland.”

* [To read with effect of Resolutions given under Appendices No. (5) &
(6)]
120
Appendix No. (18)
[Published in Part I Section 1 of the Gazette of India
dated 31st August, 1957]
27th August, 1957
*No. 60-CA(I)/57. – 1
In exercise of the powers
conferred by the clause (3) of Part III of the First Schedule to the
Chartered Accountants Act, 1949,] the Council of the Institute of
Chartered Accountants of India is pleased to direct that in all
cases where a firm of Chartered Accountants is appointed as
auditors of a company under Section 226 of the Companies Act,
1956, the member or partner of the firm, as the case may be,
who signs the auditor’s report on the accounts of the company or
any other documents of the company required by the Companies
Act, 1956, to be signed or authenticated by the auditor, shall, at
the time he affixes his signature or within a **reasonable time
thereafter, write to the Registrar of Companies concerned,
certifying the fact of his having signed the auditor’s report or
other documents of the company, and for the year, to be
specified by him in the letter.
S. VAIDYANATH AIYAR
Vice-President
____________________
* [In view of the revised Government instructions requiring the
name of the member concerned to be indicated on the face of
the auditor’s report etc., this Notification is no longer operative.]
1 Substituted for the words “In exercise of the powers conferred
by clause (iv) of the Notification No. 24-CA(8)/150 of 18th
September 1950 (as amended by Notifications dated 22nd
September, 1951, 26th March 1952 and 16th October, 1952)
issued under clause (v) of the Schedule to the Chartered
Accountants Act, 1949”, by Notification No. 1-CA(2)/3/59 dated
3.8.1959 published in Part III Section 4 of the Gazette of India
dated 8.8.1959.
** The Council has decided that the intimation should be sent
promptly say within 7 days after the date on which the report is
signed and should be sent direct to the Registrar (Ref: Page 176
of the November, 1959 and 270 of January 1960 issues of “The
Chartered Accountants.”)
121
Appendix No. (19)
[Published in Part III Section 4 of the Gazette of India
dated 12th November, 1960]
NOTIFICATION
CHARTERED ACCOUNTANTS
4th November, 1960
No. 1-CA(15)/60. − In exercise of the powers conferred
by clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the institute of Chartered
Accountants of India is pleased to specify that a member of the
Institute, whether in practice or not, who is employed by a
Chartered Accountant in practice or by a firm of such Chartered
Accountants, shall be deemed to be guilty of professional
misconduct, if he is grossly negligent in the conduct of his duties.
E.V. SRINIVASAN
Secretary
[The Notification given in Appendix No. (20) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (20)
[Published in Part III Section 4 of the Gazette of India
dated 20th November 1965]
NOTIFICATION
CHARTERD ACCOUNTANTS
6th November, 1965
No. 1-CA(7)/65. − In exercise of the powers conferred
by clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the Institute of Chartered
Accountants of India specifies that a member of the Institute
who is an employee shall be deemed to be guilty of professional
misconduct if he is wilfully and grossly negligent in the conduct
of his duties as such employee.
C. BALAKRISHNAN
Secretary
[The Notification given in Appendix No. (21) was in
operation until issuance of Council General Guidelines,
122
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (21)
[Published in Part III Section 4 of the Gazette of India
dated 30th May, 1970]
NOTIFICATION
CHARTERED ACCOUNTANTS
23rd May, 1970
No. 1-CA(37)/70. − In exercise of the powers conferred
by clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, 1[…..] the Council of the Institute of
Chartered Accountants of India specifies that a member of the
Institute shall be deemed to be guilty of professional misconduct
if −
I. he accepts appointment as cost auditor of a company
under Section 233B of the Companies Act, 1956, while he
−
(a) is an auditor of the company appointed under
Section 224 of the Companies Act; or
(b) is an officer or employee of the company; or
(c) is a partner, or is in the employment of an officer
or employee of the company; or
(d) is a partner or is in the employment of the
company’s auditor appointed under Section 224 of
the Companies Act, 1956; or
(e) is indebted to the company for an amount
exceeding one thousand rupees, or has given any
guarantee or provided any security in connection
with the indebtedness of any third person to the
company for an amount exceeding one thousand
rupees:
OR
II. after his appointment as Cost Auditor, he becomes
subject to any of the disabilities stated in items I (a) to
(e) above and continues to function as a cost auditor
thereafter.
C. BALAKRISHNAN
Secretary
____________________
1 By Notification No. 1-CA(37)/1/70 dated 18th September, 1970,
the words, brackets and figures “and pursuant to directions
issued by Government (vide their letter No. 52/3/67-CL.II dated
the 5th May, 1970)” were omitted.
123
[The Notification given in Appendix No. (22) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (22)
[Published in Part III Section 4 of the Gazette of India
dated 24th October, 1970]
NOTIFICATION
CHARTERED ACCOUNTANTS
16th October, 1970
No. 1-CA(39)/70. − In exercise of the powers conferred
by clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the Institute of Chartered
Accountants of India species that a member of the Institute in
practice shall be deemed to be guilty of professional misconduct,
if he accepts the appointment as auditor of a company under
Section 224 of the Companies Act, 1956, while he is an
employee of the cost auditor of the company appointed under
Section 233B of the Companies Act, 1956.
T.S. GREWAL
For Secretary.
[The Notification given in Appendix No. (23) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (23)
[Published in Part III Section 4 of the Gazette of India
dated 20th March, 1971]
NOTIFICATION
CHARTERD ACCOUNTANTS
124
2nd March, 1971
No. 1-CA(44)/71. − In exercise of the powers conferred
by clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the Institute of Chartered
Accountants of India species that a member of the Institute shall
be deemed to be guilty of professional misconduct, if he
expresses his opinion on financial statement of any business or
enterprise in which one or more persons who are his “relatives”
within the meaning of Section 6 of the Companies Act, 1956
have either by themselves or in conjunction with such member a
substantial interest unless he discloses the interest also in his
report.
Explanation − For this purpose the expression
“substantial interest” shall have the same meaning as is assigned
thereto under Explanation 3 of Section 13 of the Income-tax Act,
1961.
C BALAKRISHNAN
Secretary
[The Notification given in Appendix No. (24) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (24)
[Published in Part III Section 4 of the Gazette of India
dated 30th August, 1986]
NOTIFICATION
CHARTERED ACCOUNTANTS
18th August, 1986
No. 1-CA(153)/86. − In exercise of the powers
conferred by Clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India is pleased to specify that a
member of the Institute in practice shall be deemed to be guilty
of professional misconduct, if he or the firm of Chartered
Accountants of which he is a partner fails to maintain and keep in
respect of his/its professional practice, proper books of account
including the following: −
i) a Cash Book;
ii) a Ledger
R.L. CHOPRA
Secretary
125
[The Notification given in Appendix No. (25) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (25)1
[Published in Part III Section 4 of the Gazette of India
dated 22nd May, 2004]
NOTIFICATION
(Chartered Accountants)
12th May, 2004
No. 1-CA(7)/75/2004. − In exercise of the powers
conferred by Clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, and in supersession of
Notification No. 1-CA(7)/29/95 dated 1st March, 1995 published
in Part III Section 4 of the Gazette of India dated 25th March,
1995, the Council of the Institute of Chartered Accountants of
India hereby specifies that a member of the Institute in practice
shall be deemed to be guilty of professional misconduct, if he on
behalf of the firm of chartered accountants in which he is a
partner (a) consisting of 4 or more partners but less than 8
partners with at least one partner holding a certificate of practice
for five years or more; or (b) consisting of 8 or more partners
with at least one partner holding a certificate of practice for five
years or more; accepts or carries out any audit work involving
receipt of audit fees (excluding reimbursement of expenses, if
any) for such work of an amount less than what is specified
hereunder:-
Practising firm Practising firm
having 4 or more having 8 or
partners but less more partners
than 8 partners
i) In cities with population Rs.5000/- p.a. Rs.9000/- p.a.
of 2 million and above
ii) In cities/town having Rs.3000/- p.a. Rs.6000/- p.a.
population of less than
2 million
126
Provided that such restriction shall not apply in respect of
the following:-
i) audit of accounts of charitable institutions, clubs,
provident funds, etc. where the appointment is honorary
i.e. without any fees;
ii) statutory audit of branches of banks including regional
rural banks;
iii) audit of newly formed concerns relating to two accounting
years from the date of commencement of their
operations; and
iv) certification or audit under Income-tax Act or other
attestation work carried out by the Statutory Auditor.
This becomes operative for all audits relating to
accounting periods beginning on or after 1.4.2004.
Explanation -
For the purpose of this notification, the expression
statutory auditor means and includes a chartered accountant
appointed as an auditor under a Central/State or Provincial Act
as well as an auditor appointed under any agreement.
The Council has clarified that for the above purpose, the
audit of Provident Fund Trust, Gratuity Fund etc. carried out by
the statutory auditor are to be considered as separate and
distinct audit so that the above restrictions are applicable to it.
(DR. ASHOK HALDIA)
SECRETARY
____________________
1 Substituted for the following Notification:-
A[Published in Part III Section 4 of the Gazette of India
dated 25th March, 1995]
NOTIFICATION
(Chartered Accountants)
127
1st March, 1995
No. 1-CA(7)/29/95: In exercise of the powers conferred by
Clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, and in supersession of Notification No. 1-
CA(7)/158/87 dated May 25th, 1987 published in part III Section 4 of
the Gazette of India dated June 6th, 1987, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member of the
Institute in practice shall be deemed to be guilty of professional
misconduct, if he on behalf of the firm of chartered accountants in which
he is a partner (a) consisting of four or more partners but less than 8
partners with at least one partner holding a certificate of practice for
five years or more; or (b) consisting of eight or more partners with at
least one partner holding a certificate of practice for five years or more;
accepts or carries out any audit work involving receipt of audit fees
(excluding reimbursement of expenses, if any) for such work of an
amount less than what is specified hereunder:
Practising firm Practising firm
having 4 or more having 8 or
partners but less more partners
than 8 partners
(i) In cities with population Rs. 3,000 pa Rs. 6,000 pa
of 2 million and above
ii) In cities/towns having Rs. 2,000 pa Rs. 4,000 pa
population of less than
2 million
Provided that such restriction shall not apply in respect of the
following:
(i) audit of accounts of charitable institutions, clubs, provident
funds, etc. where the appointment is honorary i.e. without any
fees;
(ii) statutory audit of branches of banks including regional rural
banks;
(iii) audit of newly formed concerns relating to two accounting years
from the date of commencement of their operations; and
(iv) certification or audit under Income-tax Act or other attestation
work carried out by the Statutory Auditor.
This becomes operative for all audits relating to accounting
periods beginning on or after April 1, 1995.
Explanation -
For the purpose of this notification, the expression statutory
auditor means and includes a chartered accountant appointed as an
auditor under a Central/State or Provincial Act as well as an auditor
appointed under any agreement.
A.K. MAJUMDAR
Secretary
128
A Earlier substituted for the following Notification:-
[Published in Part III Section 4 of the Gazette of India
dated 6th June, 1987]
NOTIFICATION
(Chartered Accountants)
25th May, 1987
No. 1-CA(7)/158/87: In exercise of the powers conferred by
clause (ii) of Part II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the Institute of Chartered
Accountants of India hereby specifies that a member of the Institute in
practice shall be deemed to be guilty of professional misconduct, if he
on behalf of the firm of chartered accountants in which he is a partner
(a) consisting of 4 or more partners but less than 8 partners with atleast
one partner holding a certificate of practice for five years of more; or (b)
consisting of 8 or more partners with atleast one partner holding a
certificate of practice for five years or more; accepts or carries out any
audit work involving receipt of audit fees (excluding reimbursement of
expenses, if any) for such work of an amount below what is specified
hereunder:-
Practising firm Practising firm
having 4 or more having 8 or
partners but less more partners
than 8 partners
i) In cities with population Rs.1,500/- p.a. Rs.3,000/- p.a.
of 2 million and above
ii) In cities/towns having Rs.1,000/- p.a. Rs.2,000/- p.a.
population of less than
2 million
Provided that such restriction shall not apply in respect of the
following:
i) audit of accounts of charitable institutions, clubs, provident
funds, etc. where the appointment is honorary, i.e. without any
fees;
ii) statutory audit of branches of banks including regional rural
banks;
iii) audit of newly formed concerns relating to two accounting years
from the date of commencement of their operations; and
iv) certification or audit under Income-tax Act or other attestation
work carried out by the Statutory Auditor.
This becomes operative for all audits relating to accounting
periods beginning on or after 1st August, 1987.
Explanation -
For the purpose of this notification, the expression Statutory
Auditor means and includes a chartered accountant appointed as an
auditor under a Central/State or provincial Act as well as an auditor
appointed under any agreement.
G. Banerjee
Deputy Secretary
129
[The Notification given in Appendix No. (26) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (26)
[Published in Part III Section 4 of the Gazette of India
dated 4th February, 1989]
NOTIFICATION
(Chartered Accountant)
13th January, 1989
No. 1-CA(7)/3/88. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute in practice shall be deemed to be guilty of
professional misconduct, if he accepts, in a financial year, more
than the “specified number of tax audit assignments” under
Section 44AB of the Income-tax Act, 1961.
Provided that in the case of a firm of chartered
accountants in practice, the “specified number of tax audit
assignments” shall be construed as the specified number of audit
tax assignments for every partner of the firm.
Provided further that where any partner of the firm is also
a partner of any other firm or firms of chartered accountants in
practice, the number of tax audit assignments which may be
taken for all the firms together in relation to such partner shall
not exceed the “specified number of tax audit assignments” in
the aggregate.
Provided further that where any partner of a firm of
chartered accountants in practice accepts one or more tax audit
assignments in his individual capacity, the total number of such
assignments which may be accepted by him shall not exceed the
“specified number of tax audit assignments” in the aggregate.
Explanation -
1. For the above purpose, “specified number of tax audit
assignments” means-
130
(a) in the case of a chartered accountant in practice or
a proprietary firm of chartered accountant, 301 tax
audit assignments, in a financial year, whether in
respect of corporate or non-corporate assesses.
(b) in the case of firm of chartered accountants in
practice, 30 tax audit assignments per partner in
the firm, in a financial year, whether in respect of
corporate or non-corporate assesses.
2. In computing the “specified number of tax audit
assignments”, each year’s audit would be taken as a
separate assignment.
3. In computing the “specified number of tax audit
assignments”, the number of such assignments, which he
or any partner of his firm has accepted whether singly or
in combination with any other chartered accountants in
practice or firm of such chartered accountants, shall be
taken into account.
4. The audit of the head office and branch offices of a
concern shall be regarded as one tax audit assignment.
5. The audit of one or more branches of the same concern
by one chartered accountant in practice shall be
construed as only one tax audit assignment.
6. The above notification shall come into force from the
financial year commencing on or after 1st April, 1989.
7. A chartered accountant in practice and every partner of a
firm of such chartered accountants holding immediately
before 1st April, 1989, tax audit assignments in excess of
the specified number, shall within sixty days from 1st
April, 1989, intimate his inability to conduct tax audit in
excess of the specified number to the concerned
assesses.
8. A chartered accountant in practice shall maintain a record
of the tax audit assignments accepted by him in each

1 Should be read with announcement published in June, 2007 issue of
the Journal regarding increase in the “specified number of tax audit
assignments” from 30 to 45.
131
financial year in the format as may be prescribed by the
Council.
M.C. Narasimhan
Secretary
[The Notification given in Appendix No. (27) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (27)
[Published in Part III Section 4 of the Gazette of India
dated 31st July, 1999]
NOTIFICATION
(Chartered Accountants)
23rd July, 1999
No. 1-CA(7)/43/99. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute in practice shall be deemed to be guilty of
professional misconduct, if he or his firm undertakes issuance of
Y2K compliance certificate while the member or the firm
undertakes, whether directly or indirectly, the designing and
conversion of the computer system for Y2K compliance.
Explanation -
A member of the Institute in practice is permitted to carry
out Y2K compliance certification of an entity along with the audit
of the same entity.
ASHOK HALDIA
Secretary
[The Notification given in Appendix No. (28) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (28)
[Published in Part III Section 4 of the Gazette of India
dated 13th November, 1999]
NOTIFICATION
(Chartered Accountants)
132
28th October, 1999
No. 1-CA(7)/46/99. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute in practice shall be deemed to be guilty of
professional misconduct, if he accepts the appointment as
auditor of an entity in case the undisputed audit fee of another
Chartered Accountant for carrying out the statutory audit under
the Companies Act, 1956 or various other statutes has not been
paid:
Provided that in the case of sick unit, the above
prohibition of acceptance shall not apply.
Explanation 1 − For this purpose, the provision for audit fee in
accounts signed by both – the auditee and the auditor shall be
considered as “undisputed” audit fee.
Explanation 2 − For this purpose, “sick unit” shall mean where
the net worth is negative.
(ASHOK HALDIA)
Secretary
[The Notification given in Appendix No. (29) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (29)
[Published in Part III Section 4 of the Gazette of India
dated 19th May, 2001]
NOTIFICATION
(Chartered Accountants)
8th May, 2001
No. 1-CA(7)/53/2001. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute in practice shall be deemed to be guilty of
professional misconduct, if he holds at any time appointment of
133
more than the “specified number of audit assignments” of the
companies under Section 224 and/or Section 228 of the
Companies Act, 1956.
Provided that in the case of a firm of chartered
accountants in practice, the “specified number of audit
assignments” shall be construed as the specified number of audit
assignments for every partner of the firm.
Provided further that where any partner of the firm of
chartered accountants in practice is also a partner of any other
firm or firms of chartered accountants in practice, the number of
audit assignments which may be taken for all the firms together
in relation to such partner shall not exceed the “specified number
of audit assignments” in the aggregate.
Provided further where any partner of a firm or firms of
chartered accountants in practice accepts one or more audit
assignments in his individual capacity, or in the name of his
proprietary firm, the total number of such assignments which
may be accepted by all firms in relation to such chartered
accountant and by him shall not exceed the “specified number of
audit assignments” in the aggregate.
Explanation -
1. For the above purpose, the “specified number of audit
assignments” means −
(a) in the case of a chartered accountant in practice or
a proprietary firm of chartered accountant, thirty
audit assignments whether in respect of private
companies or other companies.
(b) in the case of a firm of chartered accountants in
practice, thirty audit assignments per partner in
the firm, whether in respect of private companies
or other companies.
Provided that out of such “specified number of audit
assignments”, the number of audit assignments of public
companies each of which has a paid-up share capital of rupees
twenty-five lakhs or more, shall not exceed ten.
2. In computing the “specified number of audit
assignments”,
134
(a) the number of such assignments, which he or any
partner of his firm has accepted whether singly or
in combination with any other chartered
accountant in practice or firm of such chartered
accountants, shall be taken into account.
(b) the audit of the head office and branch offices of a
company by one chartered accountant or firm of
such chartered accountants in practice shall be
regarded as one audit assignment.
(c) the audit of one or more branches of the same
company by one chartered accountant in practice
or by firm of chartered accountants in practice in
which he is a partner shall be construed as one
audit assignment only.
(d) the number of partners of a firm on the date of
acceptance of audit assignment shall be taken into
account.
(e) A chartered accountant in full time employment
elsewhere shall not be taken into account.
3. This notification shall come into force from the date of its
publication in the Official Gazette.
4. A chartered accountant in practice as well as firm of
chartered accountants in practice shall maintain a record of the
audit assignments accepted by him or by the firm of chartered
accountants, or by any of the partner of the firm in his individual
name or as a partner of any other firm as far as possible, in the
following format:
S.
No.
Name of
the
Company/
Audit
Assignment
Registration
Number
Date of
Appointment
Date of
Acceptance
Date on
which Form
23-B filed
with
Registrar of
Companies
1 2 3 4 5 6
Dr. Ashok Haldia
Secretary
135
[The Notification given in Appendix No. (30) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (30)
[Published in Part III Section 4 of the Gazette of India
dated 23rd March, 2002]
NOTIFICATION
(Chartered Accountants)
8th March, 2002
No. 1-CA(7)/60/2002. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute in practice shall be deemed to be guilty of
professional misconduct, if he accepts the appointment as
statutory auditor of Public Sector Undertaking(s)/Government
Company(ies)/Listed Company(ies) and other Public
Company(ies) having turnover of Rs.50 crores or more in a year
and accepts any other work(s) or assignment(s) or service(s) in
regard to the same Undertaking(s)/Company(ies) on a
remuneration which in total exceeds the fee payable for carrying
out the statutory audit of the same Undertaking/company.
Provided that in case appointing authority(ies)/regulatory
body(ies) specify(ies) more stringent condition(s)/restriction(s),
the same shall apply instead of the conditions/restrictions
specified in this Notification.
Explanation -
1. The above restrictions shall apply in respect of fees for
other work(s) or service(s) or assignment(s) payable to
the statutory auditors and their associate concern(s) put
together;
2. For the above purpose,
(i) the term “other work(s)” or “service(s)” or
“assignment(s)” shall include Management
Consultancy and all other professional services
permitted by the Council pursuant to Section
136
2(2)(iv) of the Chartered Accountants Act, 1949
but shall not include:−
(i) audit under any other statute;
(ii) certification work required to be done by
the statutory auditors; and
(iii) any representation before an authority;
(ii) the term “associate concern” means any corporate
body or partnership firm which renders the
Management Consultancy and all other
professional services permitted by the Council
wherein the proprietor and/or partner(s) of the
statutory auditor firm and/or their “relative(s)”
is/are Director/s or partner/s and/or jointly or
severally hold “substantial interest” in the said
corporate body or partnership;
(iii) the term “relative” and “substantial interest” shall
have the same meaning as are assigned under
Appendix (10) [Now Appendix (9)] to the
Chartered Accountants Regulations, 1988.
3. In regard to taking up other work(s) or service(s) or
assignment(s) of the undertaking/company referred to
above, it shall be open to such associate concern or
corporate body to render such work(s) or service(s) or
assignment(s) so long as aggregate remuneration for
such other work(s) or service(s) or assignment(s) payable
to the statutory auditor/s together with fees payable to its
associate concern(s) or corporate body(ies) do/does not
exceed the aggregate of fee payable for carrying out the
statutory audit.
4. This notification shall apply for any appointment(s) on or
after 1st April, 2002.
DR. ASHOK HALDIA
SECRETARY
[The Notification given in Appendix No. (31) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
137
Appendix No. (31)
[Published in Part III Section 4 of the Gazette of India
dated 7th September, 2002]
NOTIFICATION
(Chartered Accountants)
2nd August, 2002
No. 1-CA(7)/63/2002. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby specifies that a member
of the Institute shall be deemed to be guilty of professional
misconduct if he accepts appointment as auditor of a concern
while he is indebted to the concern or has given any guarantee
or provided any security in connection with the indebtedness of
any third person to the concern, for limits fixed in the statute
and in other cases for amount exceeding Rs. 10,000/-.
Explanation -
(1) For the above purpose, the term `auditor’ does not
include internal auditor, concurrent auditor or an auditor
giving report to the Management.
(2) For the above purpose, the limit of Rs. 10,000/- shall be
the aggregate amount in respect of the proprietor and/or
the partner/s of the firm of chartered accountants.
(DR. ASHOK HALDIA)
SECRETARY
[The Notification given in Appendix No. (32) was in
operation until issuance of Council General Guidelines,
2008 - No. 1-CA(7)/02/2008 dated 8th August, 2008,
given at Appendix No. (34)]
Appendix No. (32)
[Published in Part III Section 4 of the Gazette of India
dated 19th October, 2002]
NOTIFICATION
(Chartered Accountants)
30th September, 2002
138
No. 1-CA(7)/67/2002. − In exercise of the powers
conferred by clause (ii) of Part II of the Second Schedule to the
Chartered Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby notifies that a member of
the Institute in practice shall be deemed to be guilty of
professional misconduct, if he does not follow the direction given,
by the Council or an appropriate Committee or on behalf of any
of them, to the incoming auditors not to accept the appointment
as auditors, in the case of unjustified removal of the earlier
auditors.
DR. ASHOK HALDIA
SECRETARY
Appendix No. (33)
(Issued pursuant to Clause (7) of Part I of the First Schedule to
the Chartered Accountants Act, 1949)
Guidelines No. 1-CA(7)/Council Guidelines/01/2008,
dated 14th May, 2008
GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN
PRACTICE
The Members may advertise through a write up setting
out their particulars or of their firms and services provided by
them subject to the following Guidelines and must be presented
in such a manner as to maintain the profession’s good
reputation, dignity and its ability to serve the public interest.
1. The Member(s)/Firm(s) should ensure that the contents
of the Write up are true to the best of their knowledge and belief
and are in conformity with these Guidelines and be aware that
the Institute of Chartered Accountants of India does not own any
responsibility whatsoever for such contents or claims by the
Writer Member(s) / Firm(s).
2. Definitions
For the purpose of these Guidelines:
(i) The “Act” means The Chartered Accountants Act, 1949.
(ii) “Institute” means the Institute of Chartered Accountants
of India.
139
(iii) “write up” means the writing of particulars according to
the information given in the Guidelines setting out
services rendered by the Members or firms and any
writing or display of the particulars of the Member(s) in
practice or of firm(s) issued, circulated or published by
way of print or electronic mode or otherwise including in
newspapers, journals, magazines and websites (in Push
as well in Pull mode) in accordance with the Guidelines.
(The terms not defined herein have the same meaning as
assigned to them in the Chartered Accountants Act, 1949 and
the Rules, Regulations and Guidelines made thereunder.)
3. The write-up may include only the following
information:
(A) For Members
(i) Name ……………… Chartered Accountant
(ii) Membership No. with Institute
(iii) Age
(iv) Date of becoming ACA
(v) Date of becoming FCA
(vi) Date from which COP held
(vii) Recognized qualifications
(viii) Languages known
(ix) Telephone/Mobile/Fax No.
(x) Professional Address
(xi) Web
(xii) E-mail
(xiii) C A Logo
(xiv) Passport size photograph
(xv) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other Professionals –
(c) Articles/Audit Assistants
(d) Other Employees
(xvi) Names of the employees and their particulars on the lines
allowed for a member as stated above.
(xvii) Services provided
(a) ………………………………
(b) ………………………………
(c) ………………………………
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(B) For Firms
(i) Name of the Firm …………………… Chartered Accountants
(ii) Firm Registration No. with Institute
(iii) Year of establishment.
(iv) Professional Address(s)
(v) Working Hours
(vi) Tel. No(s)/Mobile No./Fax No(s)
(vii) Web address
(viii) E-mail
(ix) No. of partners
(x) Name of the proprietor/partners and their particulars on
the lines allowed for a member as stated above including
passport size photograph.
(xi) C A Logo
(xii) Details of Employees (Nos. - )
(a) Chartered Accountants -
(b) Other professionals –
(c) Articles/Audit Assistants
(d) Other employees
(xiii) Names of the employees of the firm and their particulars
on the lines allowed for a member as stated above.
(xiv) Services provided:
(a) ……………………………….
(b) ………………………….……
(c) …………………………….…
The write-up may have the Signature, Name of the
Member/ Name of the Partner signing on behalf of the firm, Place
and Date.
4. Other Conditions
(i) The write-up should not be false or misleading and bring
the profession into disrepute.
(ii) The write-up should not claim superiority over any other
Member(s)/Firm(s).
(iii) The write-up should not be indecent, sensational or
otherwise of such nature which may likely to bring the
profession into disrepute.
(iv) The write-up should not contain testimonials or
endorsements concerning Member(s).
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(v) The write-up should not contain any other
representation(s) that may like to cause a person to
misunderstand and/or to be deceived.
(vi) The write-up should not violate the provisions of the ‘Act’,
Rules made thereunder and ‘The Chartered Accountants
Regulations,1988’.
(vii) The write-up should not include the names of the clients
(both past and present)
(viii) The write-up should not be of font size exceeding 14.
(ix) The write-up should not contain any information other
than stated in Para 3 hereinabove.
(x) The write-up should not contain any information about
achievements/award or any other position held.
(xi) The particulars of information required at para (ii) of 3(A)
and para (ii) of 3(B) above is mandatory.
Appendix No. (34)
(Issued under the provisions of The Chartered
Accountants Act, 1949)
Guidelines No. 1-CA(7)/02/2008, dated 8th August,2008
GUIDELINES FOR THE MEMBERS OF ICAI
Chapter I
Preliminary
1.0 Short title, commencement, etc.
(a) These Guidelines have been issued by the Council
of the Institute of Chartered Accountants of India
under the provisions of The Chartered Accountants
Act, 1949, as amended by The Chartered
Accountants (Amendment) Act 2006, in
supersession of the Notifications issued by the
Council under erstwhile Clause (ii) of Part II of the
Second Schedule to the Chartered Accountants
Act, 1949.
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(b) These Guidelines be called the ‘Council General
Guidelines, 2008’.
1.1 Definitions
1.1.1 For the purpose of these Guidelines:
(a) ‘Act’ means the Chartered Accountants Act, 1949.
(b) “Chartered accountant” means a person who is a
member of the Institute.
(c) “Council” means the Council of the Institute
constituted under Section 9 of the Act.
(d) “Institute” means the Institute of Chartered
Accountants of India constituted under the Act.
1.1.2 All other words and expressions used but not defined
herein have the same meaning as assigned to them
within the Chartered Accountants Act, 1949 and the
Rules, Regulations and Guidelines made thereunder.
1.2 Applicability of the Guidelines
These guidelines shall be applicable to all the Members of
the Institute whether in practice or not wherever the
context so requires.
Chapter II
Conduct of a Member being an employee
2.0 A member of the Institute who is an employee shall
exercise due diligence and shall not be grossly negligent
in the conduct of his duties.
Chapter III
Appointment of a Member as Cost auditor
3.0 A member of the Institute shall not accept:-
(i) The appointment as Cost auditor of a Company
under Section 233B of the Companies Act, 1956
while he-
(a) is an auditor of the Company appointed under
Section 224 of the Companies Act or
(b) is an officer or employee of the Company; or
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(c) is a partner, of any employee or officer of the
Company; or
(d) is a partner or is in the employment of the
Company’s auditor appointed under Section
224 of the Companies Act, 1956; or
(e) is indebted to the Company for an amount
exceeding one thousand rupees, or has given
any guarantee or provided any security in
connection with the indebtedness of any third
person to the Company for an amount
exceeding one thousand rupees;
OR
(ii) After his appointment as Cost Auditor, he becomes
subject to any of the disabilities stated in items (i)
(a) to (e) above and continues to function as a cost
auditor thereafter.
3.1 A member of the Institute in practice shall not accept the
appointment as auditor of a Company under Section 224
of the Companies Act, 1956, while he is an employee of
the cost auditor of the Company appointed under Section
233B of the Companies Act, 1956.
Chapter IV
Opinion on financial statements when there is substantial
interest
4.0 A member of the Institute shall not express his opinion on
financial statements of any business or enterprise in
which one or more persons who are his “relatives” within
the meaning of Section 6 of the Companies Act, 1956
have, either by themselves or in conjunction with such
member, a substantial interest in the said business or
enterprise.
Explanation - For this purpose and for the purpose of
compliance of Clause (4) of Part I of the Second Schedule
to the Chartered Accountants Act, 1949, the expression
“substantial interest” shall have the same meaning as is
assigned thereto under Appendix (9) to the Chartered
Accountants Regulations, 1988.
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Chapter V
Maintenance of books of accounts
5.0 A member of the Institute in practice or the firm of
Chartered Accountants of which he is a partner, shall
maintain and keep in respect of his / its professional
practice, proper books of account including the following:-
(i) a Cash Book;
(ii) a Ledger.
Chapter VI
Tax Audit assignments under Section 44 AB of the
Income-tax Act, 1961
6.0 A member of the Institute in practice shall not accept, in a
financial year, more than the “specified number of tax
audit assignments” under Section 44AB of the Income-tax
Act, 1961.
Provided that in the case of a firm of Chartered
Accountants in practice, the “specified number of tax
audit assignments” shall be construed as the specified
number of tax audit assignments for every partner of the
firm.
Provided further that where any partner of the firm is also
a partner of any other firm or firms of Chartered
Accountants in practice, the number of tax audit
assignments which may be taken for all the firms together
in relation to such partner shall not exceed the “specified
number of tax audit assignments” in the aggregate.
Provided further that where any partner of a firm of
Chartered Accountants in practice accepts one or more
tax audit assignments in his individual capacity, the total
number of such assignments which may be accepted by
him shall not exceed the “specified number of tax audit
assignments” in the aggregate.
6.1 Explanation -
For the above purpose, “the specified number of tax audit
assignments” means -
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(a) in the case of a Chartered Accountant in practice
or a proprietary firm of Chartered Accountant, 45
tax audit assignments, in a financial year, whether
in respect of corporate or non-corporate assesses.
(b) in the case of firm of Chartered Accountants in
practice, 45 tax audit assignments per partner in
the firm, in a financial year, whether in respect of
corporate or non-corporate assesses.
6.1.1 In computing the “specified number of tax audit
assignments” each year’s audit would be taken as a
separate assignment.
6.1.2 In computing the “specified number of tax audit
assignments”, the number of such assignments, which he
or any partner of his firm has accepted whether singly or
in combination with any other Chartered Accountant in
practice or firm of such Chartered Accountants, shall be
taken into account.
6.1.3 The audit of the head office and branch offices of a
concern shall be regarded as one tax audit assignment.
6.1.4 The audit of one or more branches of the same concern
by one Chartered Accountant in practice shall be
construed as only one tax audit assignment.
6.1.5 A Chartered Accountant being a part time practicing
partner of a firm shall not be taken into account for the
purpose of reckoning the tax audit assignments of the
firm.
6.1.6 A Chartered Accountant in practice shall maintain a record
of the tax audit assignments accepted by him in each
financial year in the format as may be prescribed by the
Council.
Chapter VII
Appointment of an Auditor in case of non-payment of
undisputed fees
7.0 A member of the Institute in practice shall not accept the
appointment as auditor of an entity in case the
undisputed audit fee of another Chartered Accountant for
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carrying out the statutory audit under the Companies Act,
1956 or various other statutes has not been paid:
Provided that in the case of sick unit, the above
prohibition of acceptance shall not apply.
7.1 Explanation 1 -
For this purpose, the provision for audit fee in accounts
signed by both - the auditee and the auditor shall be
considered as “undisputed” audit fee.
7.2 Explanation 2 -
For this purpose, “sick unit” shall mean where the net
worth is negative.
Chapter VIII
Specified number of audit assignments
8.0 A member of the Institute in practice shall not hold at any
time appointment of more than the “specified number of
audit assignments” of Companies under Section 224
and/or Section 228 of the Companies Act, 1956.
Provided that in the case of a firm of Chartered
Accountants in practice, the “specified number of audit
assignments” shall be construed as the specific number of
audit assignments for every partner of the firm.
Provided further that where any partner of the firm of
Chartered Accountants in practice is also a partner of any
other firm or firms of Chartered Accountants in practice,
the number of audit assignments which may be taken for
all the firms together in relation to such partner shall not
exceed the “specified number of audit assignments” in the
aggregate.
Provided further where any partner of a firm or firms of
Chartered Accountants in practice accepts one or more
audit of Companies in his individual capacity, or in the
name of his proprietary firm, the total number of such
assignments which may be accepted by all firms in
relation to such Chartered Accountant and by him shall
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not exceed the “specified number of audit assignments” in
the aggregate.
8.1 Explanation -
For the above purpose, the “specified number of audit
assignments” means –
a. in the case of a Chartered Accountant in practice
or a proprietary firm of Chartered Accountant,
thirty audit assignments whether in respect of
private Companies or other Companies.
b. in the case of Chartered Accountants in practice,
thirty audit assignments per partner in the firm,
whether in respect of private Companies or other
Companies.
Provided that out of such “specified number of audit
assignments, the number of audit assignments of public
Companies each of which has a paid-up share capital of
rupees twenty-five lakhs or more, shall not exceed ten.
8.2 In computing the “specified number of audit
assignments”-
a. the number of audit of such Companies, which he
or any partner of his firm has accepted whether
singly or in combination with any other Chartered
Accountant in practice or firm of such Chartered
Accountants, shall be taken into account.
b. the audit of the head office and branch offices of a
Company by one Chartered Accountant or firm of
such Chartered Accountants in practice shall be
regarded as one audit assignment.
c. the audit of one or more branches of the same
Company by one Chartered Accountant in practice
or by firm of Chartered Accountants in practice in
which he is a partner shall be construed as one
audit assignment only.
d. the number of partners of a firm on the date of
acceptance of audit assignment shall be taken into
account.
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8.3 A Chartered Accountant in practice, whether in full-time
or part-time employment elsewhere, shall not be counted
for the purpose of determination of “specified number of
audit of Companies” by firms of Chartered Accountants.
8.4 A Chartered Accountant being a part time practicing
partner of a firm shall not be taken into account for the
purpose of reckoning the audit assignments of the firm.
8.5 A Chartered Accountant in practice as well as firm of
Chartered Accountants in practice shall maintain a record
of the audit assignments accepted by him or by the firm
of Chartered Accountants, or by any of the partners of the
firm in his individual name or as a partner of any other
firm, as far as possible, in the following format:
S.No. Name Regis- Date of Date of Date on which
of the tration Appoint- Accept- which Form
Company Number ment ance 23-B filed with
Registrar of
Companies
1 2 3 4 5 6
Chapter IX
Appointment as Statutory auditor
9.0 A member of the Institute in practice shall not accept the
appointment as statutory auditor of Public Sector
Undertaking(s)/Government Company(ies)/Listed
Company(ies) and other Public Company(ies) having
turnover of Rs. 50 crores or more in a year where he
accepts any other work(s) or assignment(s) or service(s)
in regard to the same Undertaking(s)/Company(ies) on a
remuneration which in total exceeds the fee payable for
carrying out the statutory audit of the same
Undertaking/company.
Provided that in case appointing authority(ies)/regulatory
body(ies) specify(ies) more stringent
condition(s)/restriction(s), the same shall apply instead of
the conditions/restrictions specified under these
Guidelines.
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9.1 The above restrictions shall apply in respect of fees for
other work(s) or service(s) or assignment(s) payable to
the statutory auditors and their associate concern(s) put
together.
9.2 For the above purpose,
(i) the term “other work(s)” or “service(s)” or
“assignment(s)” shall include Management
Consultancy and all other professional services
permitted by the Council pursuant to Section
2(2)(iv) of the Chartered Accountants Act, 1949
but shall not include: -
(a) audit under any other statute;
(b) certification work required to be done by
the statutory auditors; and
(c) any representation before an authority;
(ii) the term “associate concern” means any corporate
body or partnership firm which renders the
Management Consultancy and all other
professional services permitted by the Council
wherein the proprietor and/or partner(s) of the
statutory auditor firm and/or their “relative(s)”
is/are Director/s or partner/s and/or jointly or
severally hold “substantial interest” in the said
corporate body or partnership;
(iii) the terms “relative” and “substantial interest” shall
have the same meaning as are assigned thereto
under Appendix (9) to the Chartered Accountants
Regulations, 1988.
9.3 In regard to taking up other work(s) or service(s) or
assignment(s) of the undertaking/company referred to
above, it shall be open to such associate concern or
corporate body to render such work(s) or service(s) or
assignment(s) so long as aggregate remuneration for
such other work(s) or service(s) or assignment(s) payable
to the statutory auditor/s together with fees payable to its
associate concern(s) or corporate body(ies) do/does not
exceed the aggregate of fee payable for carrying out the
statutory audit.
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Chapter X
Appointment of an auditor when he is indebted to a
concern
10.0 A member of the Institute in practice or a partner of a
firm in practice or a firm shall not accept appointment as
auditor of a concern while indebted to the concern or
given any guarantee or provided any security in
connection with the indebtedness of any third person to
the concern, for limits fixed in the statute and in other
cases for amount exceeding Rs. 10,000/-.
Chapter XI
Directions in case of unjustified removal of auditors
11.0 A member of the Institute in practice shall follow the
direction given, by the Council or an appropriate
Committee or on behalf of any of them, to him being the
incoming auditor(s) not to accept the appointment as
auditor(s), in the case of unjustified removal of the earlier
auditor(s).
Chapter XII
Minimum Audit Fee in respect of Audit
12.0 A member of the Institute in practice shall not, on behalf
of the firm of chartered accountants in which he is a
partner, accept or carry out any audit work involving
receipt of audit fees (excluding reimbursement of
expenses, if any) for such work of an amount less than
what is specified hereunder:-
(a) consisting of 5 or more partners but less than 10
partners with at least one partner holding a
certificate of practice for five years or more; or
(b) consisting of 10 or more partners with at least one
partner holding a certificate of practice for five
years or more.
Practising firm Practising firm
having 5 or more having 10 or
Partners but less more
than 10 partners partners
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(i) In cities with Rs.6000/- p.a. Rs.12,000/- p.a.
Population of 3 million
And above
(as per the last census)
(ii) In cities/towns having Rs.3500/- p.a. Rs.8000/- p.a.
population of less
than 3 million.
(as per the last census)
Provided that such restriction shall not apply in respect of
the following: -
(i) audit of accounts of charitable institutions clubs, provident
funds, etc. where the appointment is honorary i.e. without
any fees;
(ii) statutory audit of branches of banks including regional rural
banks;
(iii) audit of newly formed concerns relating to two accounting
years from the date of commencement of their operations;
(iv) certification or audit under Income-tax Act or other
attestation work carried out by the Statutory Auditor; and
(v) Sales Tax Audit and VAT Audit.
12.1 Explanation -
For the purpose of these Guidelines, the expression
statutory auditor means and includes a chartered
accountant appointed as an auditor under a Central/State
or Provincial Act as well as an auditor appointed under
any agreement.
The Council has clarified that for the above purpose the
audit of Provident Fund Trust; Gratuity Fund etc. carried
out by the statutory auditor are to be considered as
separate and distinct audit so that the above restrictions
are applicable to it.
Chapter XIII
Repeal and Saving
13.0 The Notifications as specified in the Schedule hereto,
issued under erstwhile Clause (ii) of Part II of the Second
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Schedule to the Chartered Accountants Act, 1949 by the
Council from time to time shall stand repealed from the
date herein.
13.1 Notwithstanding such repeal:-
(a) Anything done or any action taken or purported to
have been done or taken, any enquiry or
investigation commenced or show cause notice
issued in respect of the said notifications shall be
deemed to have been done or taken under the
corresponding provisions of these guidelines.
(b) Any application made to the Council or Director
(Discipline) under the said Notifications and
pending before the Director (Discipline), Board of
Discipline, Disciplinary Committee and the Council
shall be deemed to have been made under the
corresponding provisions of these Guidelines.
SCHEDULE
NOTIFICATIONS ISSUED BY THE COUNCIL UNDER
ERSTWHILE CLAUSE (ii) OF PART II OF THE SECOND
SCHEDULE TO THE CHARTERED ACCOUNTANTS ACT, 1949.
1. No. 1-CA(7)/65 dated 6th November, 1965.
2. No. 1-CA (37)/70 Published in Part III Section 4 of the
Gazette of India dated 30th May, 1970.
3. No. 1-CA(39)/70 Published in Part III Section 4 of the
Gazette of India dated 24th October, 1970.
4. No. 1-CA(44)/71 Published in Part III Section 4 of the
Gazette of India dated 20th March, 1971.
5. No. 1-CA(153)/86 Published in Part III Section 4 of the
Gazette of India dated 30th August, 1986.
6. No. 1-CA(7)/3/88 Published in Part III Section 4 of the
Gazette of India dated 4th February, 1989.
7. No. 1-CA(7)/9/89 Published in Part III Section 4 of the
Gazette of India dated 19th August, 1989 (Since quashed
by the Supreme Court vide Order dated 16th May, 2007).
8. No. 1-CA(7)/43/99 Published in Part III Section 4 of the
Gazette of India dated 31st July, 1999.
9. No. 1-CA(7)/46/99 Published in Part III Section 4 of the
Gazette of India dated 13th November, 1999.
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10. No. 1-CA(7)/53/2001 Published in Part III Section 4 of
the Gazette of India dated 12th May, 2001.
11. No. 1-CA(7)/60/2002 Published in Part III Section 4 of
the Gazette of India dated 23rd March, 2002.
12. No. 1-CA(7)/63/2002 Published in Part III Section 4 of
the Gazette of India dated 7th September, 2002.
13. No. 1-CA(7)/67/2002 Published in Part III Section 4 of
the Gazette of India dated 19th October, 2002.
14. No. 1-CA(7)/75/2004 Published in Part III Section 4 of
the Gazette of India dated 22nd May, 2004.