under cutting of fees
This query is : Resolved
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
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
02 August 2009
yes, it is true that this clause has been amended in ca regulaions
02 August 2009
agree
02 August 2009
if these clause has been amended then plz tell me that whats that amendment.......
thankx
thankx
02 August 2025
About the **“under cutting of fees” clause in the CA professional ethics** for your Nov 2009 attempt:
---
### 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.
---
### 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.
---
### 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.
---
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?
---
### 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.
---
### 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.
---
### 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.
---
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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