The Institute of Chartered Accountants of India (ICAI) has issued new guidelines for practising Chartered Accountants responding to tenders for professional services, effective October 12, 2026. The guidelines aim to discourage extremely low fee quotations and ensure that professional fees are commensurate with the scope and requirements of the assignment.
Issued under Section 15(2)(fa) of the Chartered Accountants Act, 1949, the guidelines apply to tenders floated by various organisations for availing professional services.
Key Highlights of the New ICAI Tender Guidelines
1. Minimum Fees Mandatory for Certain Tender Responses
Practising Chartered Accountants cannot respond to tenders for professional services exclusively reserved for CAs under any statute if the tender document does not prescribe minimum fees.
Where a tender specifies a minimum fee, members may submit their bids, but the quoted fee must not be lower than the prescribed amount.
The term minimum fee includes estimated fees, professional fees, average fees or any similar fee description used in the tender document.
2. Extremely Low Fee Quotations Discouraged
The guidelines clarify that practising members should not quote extremely low fees, even for services that are not exclusively reserved for Chartered Accountants.
The fees quoted must be reasonable and proportionate to the size, value, volume and nature of the assignment, along with the manpower required to complete the work.
3. Maintaining a Cost Sheet Is Mandatory
Members responding to tenders must maintain a cost sheet detailing the estimated expenses involved in executing the assignment.
The cost sheet should consider factors such as the number of personnel engaged and the hours required to complete the work. ICAI may call for these documents in connection with bids submitted by members.
4. Reverse Bidding Below Minimum Fees Not Permitted
The guidelines specifically prohibit members from participating in reverse bidding where the tenderer allows bids below the prescribed minimum fee.
This restriction reinforces the requirement that members must not undercut the minimum fee specified for professional services exclusively reserved for Chartered Accountants.
Services Not Exclusively Reserved for CAs: What Applies?
For services that are not exclusively reserved for Chartered Accountants under any statute, practising members may respond to tenders regardless of whether a minimum fee has been prescribed or whether the invitation is open exclusively to Chartered Accountants.
However, the requirement to avoid extremely low fee quotations and maintain a cost sheet applies to tender responses covered by the guidelines.
The guidelines also clarify that they do not apply where quotations are invited from practising members or firms through individual letters.
Earlier ICAI Guidelines Also Apply
ICAI has stated that the new guidelines must be read along with its earlier Guideline No. 1-CA(7)/03/2016 dated April 7, 2016.
The guidelines have been issued by the ICAI Council under the authority of Section 15(2)(fa) of the Chartered Accountants Act, 1949, and come into force with immediate effect.
What Practising CAs Should Do
Practising Chartered Accountants and CA firms should review tender conditions carefully before submitting bids. They should verify the minimum fee requirements, ensure that their quotations reflect the scope of work and maintain detailed cost sheets to support their estimates.
The new guidelines establish clearer expectations for fee quotations in tender-based professional engagements and place greater emphasis on appropriate pricing and cost documentation.
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