Non-ca partners running a firm in my locality!

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2014 I am a practising CA in Indore, and around 2 months back suddenly few of my regular clients stopped using my services. Recently i found out that they have given their accounting and tax related work to a new firm in my locality, which is run by 5 guys, out of which 2 are just inter pass! And i am certain they are employed as partners there, and handle all the work relating to accounts, sales tax, excise etc. Also, i don't think those guys have enough knowledge to form an LLP partnership to do it the right way.

Is it allowed by the ICAI to form such partnership firms? What can i do to bring it to their notice?

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 February 2014 it is not allowed by ICAI...but only if such non-practicing CAs are the partners..thats the difficult to prove..just because they handle a lot of work, that doesnt mean they are partners...

mehulmukati

mehulmukati (Expert)

10 February 2014 Do remember only CAs can perform attest function - sign annual report.

However anyone can provide advisory services and / or account writing services - ICAI or any one else does not restrict that.

In fact, for a few years ICAI is enabling Inter-CAs to get "Accounting Technician" Certificate. This course is also offered by ICAI to all.

Similarly the IT Department has made people go through a course so that they can offer their services for return filing.

In a nutshell, as long as they (whether in partnership or any other form) do not perform any attest function nor claim to be a firm of CAs; it is allowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2014 Thanks for the clarification. Now i don't intend to take any action because i have found out that they are just into advisory and accounts writing. I think they are using their "Accounting Technician" certificate to the fullest. Good for them!