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Ca having cop & agent earning commission in insurance co.

Sumit Rajput (Article) (115 Points)

28 July 2015

Please anybody help me in solving this problem.Whether A Chartered Accountant having COP can become an advisor(Earning Commission & not salary) in any insurance company ? And if your answer is Yes, then tell me, Is it required to take permission of ICAI ? or to inform ICAI ? or No action is required ? Read more at: /forum/post-member-issue-332972.asp

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CA Chandra Prakash (9873059766 Increasing knowledge through ) (296 Points)
Replied 28 July 2015

clause 11 of first schedule of Chartered Accountant Act,1949 provides a CA in practice is deemed to be guilty of professional misconduct if he engages himself in any business/occupation other than profession of ca unless permitted by council, so to engage. In above case if ca provides only advise than he would receive payment as professional fees not as commission. If co. Pays him as commission it would be amount to business on commission (other than ca profession) . Thus it is advisable to take permission from council to engage in such co. As advisor.