ICAI Warns CAs Against Extremely Low Tender Fees, Disciplinary Action May Follow

Last updated: 03 July 2026

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The Institute of Chartered Accountants of India (ICAI) has issued a warning to its members and CA firms regarding the submission of tenders. The ICAI Council has decided that any cases where a chartered accountant or firm quotes professional fees that are significantly too low for the scope of work may be referred for disciplinary action. This ruling applies regardless of whether the tender is for services exclusively reserved for chartered accountants.

The Professional Development Committee (PDC) of the Institute of Chartered Accountants of India (ICAI) has announced a key decision taken by the ICAI Council regarding participation in tenders by chartered accountants and CA firms.

According to an announcement dated 2 July 2026, the Council has decided that cases where a member or firm quotes an extremely low professional fee that is not commensurate with the nature and scope of the assignment may be referred to the Director (Discipline) for appropriate action.

ICAI Warns CAs on Low Tender Fees: Disciplinary Action Possible

Official copy of the notification is as follows

Professional Development Committee
The Institute of Chartered Accountants of India

ANNOUNCEMENT

Decision taken by the Council regarding tenders

The Council of ICAI has decided that wherever the fee quoted by the member or the firm is extremely low and is not commensurate with the size, value, volume, manpower requirement and nature of work, the matter can be referred to the Director (Discipline) for appropriate action. This decision shall stand whether or not the tender is issued in the area of service exclusively reserved for chartered accountants.

FAQ :

The ICAI Council has decided that cases where members or firms quote extremely low professional fees for tenders, not in line with the scope of work, may be referred for disciplinary action.

The warning was announced by the Professional Development Committee (PDC) of the Institute of Chartered Accountants of India (ICAI) based on a decision by the ICAI Council.

An 'extremely low' fee is one that is not commensurate with the size, value, volume, manpower requirement, and nature of the work involved in the assignment.

Matters may be referred to the Director (Discipline) for appropriate action.

Yes, this decision applies whether or not the tender is issued in an area of service exclusively reserved for chartered accountants.

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