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Stipend received in cash

NIKHIL VERMA (ARTICLE ASSITANT) (66 Points)

13 June 2013

Dear All,

I have completed my articleship in feb 2012 , and sumbitted my form 108, I received Stipend in Cash hence no information relating this filed in Form 108. Reason for receving it in cash is that I was not holding any bank account till Jan 2011 due to some id proofs regarding issue.

Now intitute has given a letter for the same and asking details of my stipend. suggest me some thing at your earliest and oblige.

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18 Replies

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 13 June 2013

1)Dear nikhil you would have shown some bank account number instead showing a fact of cash stipend.

2)As per ICAI regulations Member who is in practise is need to provide stipend in cheque/Bank transfer,

3)And saying proofs not available is not a valid reason..

In such cases icai will generally ICAI thinks student is DUMMY and send a notice asking following details

(i)STIPEND PROOF

(ii)WORK DIARY

(iii)FORM 102 Under stamp paper

HOW TO ANSWER:-

You need to respond to icai with in a reasonable time ...As long as you delayed your articleship completion certificate will not be provided.

(i)provide cash receipts of your auditor's firm as a proof of stipend

(ii)Provide work diary if ICAI asks from you.

(iii)Form 102 copy If ICAI asks.

You just give answer to ICAI to the extent for which it seeks explanation....

Thanks & regards

Ganeshbabu k

1 Like

NIKHIL VERMA (ARTICLE ASSITANT) (66 Points)
Replied 14 June 2013

Dear Ganesh,

Thanks for your reply . but I want to tell u that I have left blank that colum and not mentioned Cash anywhere in Form.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 14 June 2013

1)Now you dont have a chance to say some what bank account number... atleast 1 year also not taken cheques for stipend..

2)provide copies of cash payment vouchers of your firm which is paid as cash...because there is no other option left

What icai asks u exactly...do they asked u to provide all months stipends details

Thanks & regards

Ganeshbabu k

NIKHIL VERMA (ARTICLE ASSITANT) (66 Points)
Replied 14 June 2013

Dear Ganesh,

They asked for confirmation isstiprnd is paid accordancewith the provision of Regulation 48.and nothing else

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 14 June 2013

that is what i said..

In short regulation 48 says,

1)principle should pay minum stipend prescribed as per icai rules

2)that payment should be made through crossed account payee cheque

do refer 48 regulations

https://220.227.161.86/7697announ1209b.pdf

Thanks&regards

Ganeshbabu k

madhu (student) (23 Points)
Replied 23 February 2014

@ Nikhil verma ..... how did sort out this issue? can u pllzz reply with brief? @ ganesh babu. .... hi ... at the time of completion whether institute ask all 36 months stipend detials? or last 6 months to 1 year stipend detials ( which is issued by account payee cheque ) is enough? plzz reply ...

madhu (student) (23 Points)
Replied 08 March 2014

plz reply any one for my above query

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 08 March 2014

they will not ask any thing to provide if u filed form 108 with in time

if they ask they will ask to provide full details for 3 years

rakhi (Clerk) (21 Points)
Replied 01 July 2014

how did you answer them finaly??

NIKHIL VERMA (ARTICLE ASSITANT) (66 Points)
Replied 01 July 2014

I just provided them certificate From my CA that he has paid me stipend as per institute norms and such has been deposited by me in so and so account. and we have forgotten to mention such details in FORM 108

1 Like

Pinak Gandhi (Article Trainee) (24 Points)
Replied 09 October 2014

so was providing such certificate enough or they asked for something else? Did you had to file a fresh 108 in triplicate? And did you finally receive the articleship completion certificate? Pls reply asap, coz I have been served with the same notice and have no idea how to respond to it.

(Guest)

Did u get the articleship completion certificate or further action intiated by institute

Brinda (Professional) (38 Points)
Replied 24 August 2015

Even I haven't filled in the bank account details since my boss pays me through account payee crossed cheque so I cut the line wherein it says ....'deposited by me directly in his account no ...............' So will I get a letter too asking for bank account details !?????

Rishi (articalship) (28 Points)
Replied 09 September 2015

This is Rushi, i am doing 3rd year Articleship in hyderabad and i want terminate articleship from my present auditor and rejoin to near by my home town(distance is 400km from my home town to hyderrabad) and stipend has taken from my auditor in cash, what is procedure suggest me..