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CA Anand Bhardwaj (Employment) (31 Points)

15 November 2008

Dear Friends,

Can a Chartered Accountant, who is in full time employement, hold COP and register his firm for part time practice????

Thanks in Advance,

CA Anand Bhardwaj

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7 Replies

daVe.. (Student) (1431 Points)
Replied 15 November 2008

3. Engagement in other Business/Occupation

(Regulation 190A)

Eligibility

1. A member in practice is required to seek permission of the Council under Regulation 190A for

engagement in any business or occupation other than the profession of accountancy. The member

is required to submit an application in the prescribed Form. The permissible categories of

engagements approved by the Council under Regulation 190(A), are available in Appendix No. 9 to

the Chartered Accountants Regulations, 1988.

2. In case a member had obtained permission of the Council for other engagement, he is required to

inform to the Institute the date of leaving, upon ceasing such employment within 30 days.

3. He may also seek permission for his new engagement by sending the application in the prescribed

Form within 30 days.

Requirements

1. An application in the prescribed Form filled in and signed and complete in all respects by the

member shall be submitted to the Institute's office within 30 days from the date of joining the

employment.

2. In case the member is employed with a firm of Chartered Accountants, a letter of confirmation from

the firm shall also be submitted.

3. The permission of joining/leaving should be communicated to the Institute's office within 30 days

mentioning the exact date when he joined/ceased to be engaged in other occupation/engagement.

Interest In Family Business

A member of the Institute can acquire interest in family business in any of the following manner:

(a) as a proprietor of a proprietary firm.

(b) as a partner of partnership firm.

(c) in the name and style of Hindu Undivided Family as its karta or a member.

It would be necessary for the member to provide evidence that interest in the family business concern

devolved on him as a result of inheritance/succession/partition of the family business. It is also necessary

for the member to show that he was not actively engaged in carrying on the said business and that the

family business concern in question was not created by him.

The member is required to submit an application and a declaration in the prescribed format.

daVe.. (Student) (1431 Points)
Replied 15 November 2008

Members in Part-time practice

The Council at its 241st meeting decided that effective from 1.04.2005, any member in part-time practice

(namely, holding certificate of practice and is also engaging himself in any other business and/or

occupation) is not entitled to perform attest function, and that the resolution passed under Regulation

190A, which is currently in force and appears as Appendix 10 to the Chartered Accountants Regulations

1988 (Appendix No. 9 in 2002 Edition), be reviewed by the Executive Committee, in the light of the above

decision

The Council at its 242nd meeting noted the recommendations made to it by the Executive Committee

in this regard and accordingly passed the following resolution as a part of and in continuation of the

existing resolution under Regulation 190A which appears as Appendix no. 9 to the C.A. Regulations,

1988 (2002 edition)

IT IS FURTHER RESOLVED that the general and specific permission granted by the Council is

subject to the condition that -

i) any member engaged in any other business or occupation, in terms of general or specific

permission granted as per Appendix No. (9) shall not be entitled to perform any attest function

except in the following cases.

(a) Authorship of books and articles

(b) Holding of Life Assurance Agency License for the limited purpose of getting renewal

commission.

(d) Holding of public elective offices such as M.P., MLA & MLC.

(e) Honorary office-bearership of charitable, educational or other non-commercial

organizations.

(f) Acting as Notary Public, Justice of the Peace, Special Executive Magistrate and the like.

(g) Part-time tutorship under the Coaching Organisation of the Institute.

(h) Valuation of papers, acting as paper-setter, head-examiner or a moderator for an

examination.

(i) Editorship of professional journals - (not in employment)

(j) Acting as surveyor and Loss Assessor under the Insurance Act, 1938 (not in employment).

(k) Acting as Recovery consultant in the Banking Sector (not in employment)

(I) Any coaching assignment organized by the Institute, its Regional Councils and Branches of

Regional Councils.

(m) Engagement as Lecturer in an University, affiliated college, educational institution, coaching

organization, private tutorship, provided the direct teaching hours devoted to such activities

taken together do not exceed 25 hours a week.

(n) Engagement in any other business or occupation permitted by the Executive Committee

form time to time.

(ii) A member who is not entitled to perform attest function shall not be entitled to train articled/audit

assistants

(iii) The decision (of the Council) taken at its 223rd meeting held in February,2002 prescribing the

criteria for individual cases of articleship shall continue to be in operation, mutatis mutandis.

The Council in this connection also clarified that the Attest function for the purpose of this Resolution

would cover services pertaining to audit, review, certification, agreed upon procedures, and

compilation, as defined in the Framework of Statements on Standard Auditing Practices and

Guidance Notes on Related Services published in the July, 2001 issue of the Institute's Journal.

daVe.. (Student) (1431 Points)
Replied 15 November 2008

For Info: https://www.icai.org/post.html?post_id=1820&c_id=82

CA Anand Bhardwaj (Employment) (31 Points)
Replied 15 November 2008

Thank You Dear Dave,

So to sum up, a CA who is engaged in full time employment can hold COP for part time practice but can not take any attestation function i.e. Audit, Certification etc. So it is obvious that he can engage himself in Consultancy in respect of Accoutancy and Taxation works.

Regards,

Anand

daVe.. (Student) (1431 Points)
Replied 15 November 2008

You are right Mr. Anand.

ICAI always frames water tight laws!

Gud.

CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 15 November 2008

When such a CA cannot attest, what is the satisfaction derived for the work done behind the screen. As told by one of the spokesman of the Insitute, holding part-time COP will only make you FCA in a routine manner. What a fun, even such CA does not have exposure to practice, he is deemed to acquire such expertise to honour with FCA. It is not understood the difference between attestation, certification and signing. Can anyone share on this.

(Guest)

"Dear Sir,

I passed my ca in jan2000, i joined as aca in april2000,i also recd my cop but i was in full time employment in a CA firm where i did my articles as a CA in full time employment drawning remmuneration as consultancy fees . This was for a continious period of 5 years. I have TDS certicates for the 5 years)01.04.2000 to 31.03.2005. thereafter my dad met with an accident and I had to take a break in my profession this was for 6 months however it took me another5 months to get a job in the industry. i joined the industry in public ltd co in april2006. i am working in the industry till date.

can i be fellow member in the light of these events, what is effect on cop.

can u please suggest suitable action i have to take

pleae keep the information confidential as this is the only source of livelihood for my family , my parents are senior citizens, i am not marris i have no other source of income

thanks

Originally posted by :CA Anand Bhardwaj
"	Dear Friends, Can a Chartered Accountant, who is in full time employement, hold COP and register his firm for part time practice???? Thanks in Advance, CA Anand Bhardwaj	"