under cutting of fees

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madhur gupta (Querist)
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01 August 2009 hello friendz
i was studying prof.ethics for CA FINAL
there i read somewhere that under cutting of fees clause has been deleted
plz provide me details in this regard whether it is still applicable or not ,
my attempt is nov09
thankx

Jitender

Jitender (Expert)
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02 August 2009 yes, it is true that this clause has been amended in ca regulaions

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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02 August 2009 agree

madhur gupta

madhur gupta (Querist)
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02 August 2009 if these clause has been amended then plz tell me that whats that amendment.......
thankx

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 About the **“under cutting of fees” clause in the CA professional ethics** for your Nov 2009 attempt:

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### What happened to the "Under Cutting of Fees" clause?

* Yes, the **clause relating to ‘under cutting of fees’ was removed/amended** from the CA regulations and Code of Ethics around that time (2009).
* The **reason** was to **align with the changing professional practices** and **allow more flexibility in fee negotiations** without being strictly termed as unethical under that clause.
* Instead, the emphasis was shifted to **professional integrity and fair competition** rather than a blanket prohibition on reducing fees.

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### Details of the amendment:

* The **Institute of Chartered Accountants of India (ICAI)** amended the **Code of Ethics and Regulations** by deleting the specific clause prohibiting fee undercutting.
* Now, members are expected to **charge fees that are fair, reasonable, and in line with professional standards**, avoiding unfair practices but not absolutely banning fee reductions.

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### What you should focus on for Nov 2009:

* Understand that while **fee undercutting is no longer explicitly prohibited as per the clause**, the **fundamental principles of integrity, professionalism, and non-malpractice remain critical**.
* You should be aware of the **current ethical standards encouraging transparency and fairness** in fee fixation.

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If you want, I can help summarize the exact changes from the ICAI notifications or guide you on the relevant sections from the **updated Code of Ethics** for your exam prep. Would you like that?

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