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Further Amendments in the Chartered Accountants Regulations,



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[TO BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY,

PART III SECTION 4]

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

NOTIFICATION

New Delhi, dated 25th September, 2008

No.1-CA(7)/116/2008. - Whereas certain draft amendments further to amend the

Chartered Accountants Regulations, 1988, were published by the Council of the Institute of

Chartered Accountants of India, as required by sub-section (3) of section 30 of the

Chartered Accountants Act, 1949 (38 of 1949) at pages 1 to 18 of the Gazette of India, Part

III Section 4, dated the 5th May, 2008 under the notification of the Institute of Chartered

Accountants of India No.1-CA(7)/116/2008 dated 5th May, 2008;

And whereas objections and suggestions were invited before the expiry of a period of

forty five days from the date on which the copies of the said Gazette were made available to

the public;

And whereas the said Gazette was made available to the public on 8th May, 2008;

And whereas no objection or suggestion or comment was received from any person

with respect to the said draft notification and that the matter has been considered by the

Council of the Institute of Chartered Accountants of India and approved by the Central

Government;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30

of the said Act, the Council, with the approval of the Central Government, hereby makes the

following amendments in the Chartered Accountants Regulations, 1988, namely:-

1. (1) These regulations may be called the Chartered Accountants (Amendment)

Regulations, 2008.

(2) They shall come into force from the date of their publication in the Official

Gazette.

2. In the Chartered Accountants Regulations, 1988,-

(a) after regulation 3, the following regulation shall be inserted, namely:-

“3A. List of members. — The list of members of the Institute as on the 1st day of

April each year published, under sub-section (3) of section 19, may be sent to any

member, on his request and on his making payment at the following rates, -

(i) Western Region – Rupees 500/- per copy

(ii) Southern Region – Rupees 500/- per copy

(iii) Eastern Region – Rupees 300/- per copy

(iv) Central Region – Rupees 400/- per copy

(v) Northern Region – Rupees 500/- per copy

(vi) All India – Rupees 750/- per copy”

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(b) in regulation 5, in sub-regulation (1),

(i) in clause (a), for the words, “the fee prescribed in these regulations”, the

words, “such fee as may be determined by the Council under sub-section (3)

of section 4”, shall be substituted.

(ii) in clause (b), for the words, “the prescribed entrance fee”, the words, “such

fee as may be determined by the Council under sub-section (3) of section 5”

shall be substituted:

Provided that an associate on being admitted as a fellow in the course of the

year shall pay, for that year, only the differential amount.”;

(c) for regulation 6, the following regulation shall be substituted, namely:-

“6. Fees

(1) (a) The annual membership fee shall become due on the first day of April in

each year.

(b) Every member shall pay such annual membership fee as may be determined

by the Council under sub-section (4) of section 19.

(2) (a) The annual fee for certificate of practice shall become due on the first day of

April in each year.

(b) Every member in practice shall pay such annual certificate of practice fee, as

may be determined by the Council under sub-section (2) of section 6.

(3) A member seeking restoration of his membership shall pay, such additional

fee, as may be determined by the Council under sub-section (3) of section 20.”;

(d) in regulation 10, for sub-regulations (1) and (2), the following shall be substituted,

namely:-

“(1) A certificate of practice issued under sub-section (1) of section 6 shall be

liable for cancellation, if -

(i) the name of the holder of the certificate is removed from the Register

under sub-sections (1) and (2) of section 20; or

(ii) the Council is satisfied, after giving an opportunity of being heard to

the person concerned, that such certificate was issued on the basis of

incorrect, misleading or false information, or by mistake or

inadvertence; or

(iii) a member has ceased to practise; or

(iv) a member has not paid annual fee for certificate of practice till 30th

day of September of the relevant year.

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(2) The cancellation of a certificate shall be effective:-

(a) in a case falling under clause (i) of sub-regulation (1), on the date on

which and during the period for which the name of the holder of the

certificate was removed from the Register;

(b) in a case falling under clause (iv) of sub-regulation (1), from the 15th

day following the date of issue of notice by the Secretary on or after

the 1st day of October; and

(c) in any other case from such date and for such period, as may be

decided by the Council.”;

(e) for regulation 11, the following regulation shall be substituted, namely:-

“11. Restoration of certificate of practice. − The Council may, on an application made

in the approved Form and on payment of such fee, as may be determined by the

Council under sub-section (3) of section 20, restore the certificate of practice with

effect from the date on which it was cancelled, to a member whose certificate has

been cancelled due to non-payment of the annual fee for the certificate of practice

and whose application, complete in all respects, together with the fee, is received by

the Secretary before the expiry of the relevant year.”;

(f) in regulations 12, 13, 14, 15, 16 and 17, after the headings, the following words in

brackets shall be inserted, namely:--

“[Applicable to a complaint or information pending before the Council or any inquiry

initiated by the Disciplinary Committee or any reference or appeal made to a High

Court prior to 17.11.2006]”;

(g) after regulation 17, the following regulation shall be inserted, namely:-

“17A. Fee and procedure for investigation of a complaint or information to be

followed by the Director (Discipline), Disciplinary Directorate and procedure for

inquiry by the Disciplinary Committee.

[Applicable to a complaint or information received on or after 17.11.2006]

(1) Every complaint, other than a complaint filed by or on behalf of the Central

Government or any State Government or any statutory authority, shall be

accompanied by a fee of Rs.2,500/-;

(2) Each such complaint or information shall be dealt with in accordance with the

procedure specified in the Chartered Accountants (Procedure of Investigations of

Professional and Other Misconduct and Conduct of Cases) Rules, 2007.”;

(h) for regulation 19, the following regulation shall be substituted, namely:-

“19. Restoration to membership. − (1) The Council may, on an application in the

appropriate Form, received in this behalf from a member whose name has been

removed from the Register under clause (c) of sub-section (1) of section 20, restore

his name, if he is otherwise eligible to such membership, on his paying the arrears of

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annual membership fee, entrance fee and additional fee determined by the Council

under the Act.

(2) The restoration under sub-regulation (1) shall be with effect from the date on

which the application and fee are received:

Provided that where such an application for restoration, complete in all

respects, is received within the same year in which the name was removed, the

Council may restore the name on his paying the annual membership fee due for that

year, entrance fee and the additional fee for restoration, with effect from the date on

which it was removed from the Register:

Provided further that the restoration of a member’s name which was removed

under the orders of the Board of Discipline or the Disciplinary Committee or the

Appellate Authority or the High Court shall be effected only in accordance with such

orders.”;

(i) after regulation 53, the following regulations shall be inserted, namely:-

“53A. Other professional bodies. − (1) For the purposes of Items (2), (3) and (5) of

Part I of the First Schedule to the Act, a person has to be a member of any of the

following professional bodies, namely:-

(a) The Institute of Company Secretaries of India established under the

Companies Act, 1980 (No.56 of 1980);

(b) The Institute of Cost and Works Accountants of India established

under the Cost and Works Accountants Act, 1959 (No.23 of 1959);

(c) Bar Council of India established under the Advocates Act, 1961 (No.25

of 1961);

(d) The Indian Institute of Architects established under the Architects Act,

1972 (No.20 of 1972);

(e) The Institute of Actuaries of India established under the Actuaries Act,

2006 (No.35 of 2006).

(2) The membership of the professional bodies or institutions outside India

whose qualifications relating to accountancy are recognised by the Council under

sub-section (2) of section 29 shall also be taken into consideration for the purposes

of Items (2), (3) and (5) of the Part I of the First Schedule to the Act.

(3) For the purposes of Items (2), (3), (4) and (5) of Part I of the First Schedule

to the Act, the following shall be the persons qualified in India, namely:-

(i) Company Secretary within the meaning of the Company Secretaries

Act, 1980;

(ii) Cost Accountant within the meaning of the Cost and Works

Accountants Act, 1959;

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(iii) Actuary within the meaning of the Actuaries Act, 2006;

(iv) Bachelor in Engineering from a University established by law or an

Institution recognised by law;

(v) Bachelor in Technology from a University established by law or an

institution recognised by law;

(vi) Bachelor in Architecture from a University established by law or an

institution recognised by law;

(vii) Bachelor in Law from a University established by law or an institution

recognised by law;

(viii) Master in Business Administration from Universities established by law

or technical institutions recognised by All India Council for Technical

Education.

53B. Membership of professional bodies for partnership. − (1) For the purposes of

entering into partnership under Item (4) of Part I of the First Schedule to the Act, a

person shall be a member of any of the following professional bodies, namely:-

(a) Company Secretary, member, The Institute of Company Secretaries of

India, established under the Company Secretaries Act, 1980;

(b) Cost Accountant, member, The Institute of Cost and Works

Accountants of India established under the Cost and Works

Accountants Act, 1959;

(c) Advocate, member, Bar Council of India established under the

Advocates Act, 1961;

(d) Engineer, member, The Institution of Engineers, or Engineering from

a University established by law or an institution recognized by law.

(e) Architect, member, The Indian Institute of Architects established

under the Architects Act, 1972;

(f) Actuary, member, The Institute of Actuaries of India, established

under the Actuaries Act, 2006.

(2) Professional bodies or institutions outside India whose qualifications relating

to accountancy are recognised by the Council under sub-section (2) of section 29 of

the Act.”;

(j) Regulations 82 to 126 shall be omitted;

(k) in regulation 137, in sub-regulation (9), for the words “such other persons belonging

to the region as may be co-opted by the Regional Council, not exceeding two-thirds

of the members of the committee, so however, that at least one-half of such coopted

persons shall be members of the Institute” the words “such other members

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belonging to the region as may be co-opted by the Regional Council, not exceeding

one-third of the members elected to the committee as above” shall be substituted.

(l) After regulation 174, the following shall be inserted, namely:-

“174A. Committees of the Council. − The Standing Committees constituted by the

Council under section 17 shall at all times function under the control, direction and

supervision of the Council.”

(m) for regulation 175, the following regulation shall be substituted, namely:-

“175. Executive Committee. − (1) The Executive Committee shall perform the

following functions, namely:—

(a) enrolment of members with or without certificate of practice,

admission of fellows, removal and restoration of names of members,

cancellation of certificate of practice, prosecution of members on the

findings of the Council, granting exemption to chartered accountants

in practice or firms of such chartered accountants from the operation

of sub-section (1) of section 27 and publication of the list of members;

(b) grant of permission to a chartered accountant in practice to engage in

any business or occupation other than the profession of accountancy

in accordance with, and subject to, the restrictions specified in this

behalf by the Council;

(c) condone the delay in supplying requisite information under regulation

190;

(d) maintenance of the Register of articled assistants and Register of

audit assistants and all other statutory registers which are prescribed

by the Act or these regulations;

(e) custody of the property, assets and funds of the Institute;

(f) maintenance of office of the Council and for this purpose the

Executive Committee may employ, suspend, discharge or re-employ

the necessary staff on such terms and conditions as it may deem fit;

(g) according approval, on recommendation of Finance Committee, to the

likely expenditure upto twenty percent in excess of the estimates

previously sanctioned by the Council in the respective heads of the

annual budget:

Provided that where the Executive Committee does not agree with the

recommendation of the Finance Committee, the matter shall be decided by

the Council.

(2) Except as otherwise provided by these regulations, the Executive Committee

shall exercise all the functions and powers of the Council in relation to articled

assistants and audit assistants, except those contained in regulations 44, 67 and 80.

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(3) The Council shall have the power to review any decision taken by the

Executive Committee in the performance of the functions assigned to it.”

(n) after regulation 176, the following regulation shall be inserted, namely:-

“176A. Finance Committee. − (1) The Finance Committee shall control, implement

and supervise the activities related with and incidental to the following areas,

namely:-

(a) maintenance of true and correct accounts of all the receipts and

payments on behalf of the Council and the matters in respect of which

such receipts and payments take place and of all the property,

securities, debts, funds and liabilities of the Institute;

(b) formulation of annual budget of the Institute and presenting it to the

Council for approval, after obtaining the recommendation of the

Executive Committee;

(c) control of funds of the Institute;

(d) investment of the funds of the Institute in securities and to vary such

investments from time to time subject to the guidelines approved by

the Council;

(e) disbursements from the funds of the Institute for expenditure, both

revenue and capital, based on the estimates previously sanctioned by

the Council:

Provided that expenditure in excess of the estimates previously

sanctioned by the Council may be incurred with the recommendation

of the Executive Committee, wherever considered expedient, but such

excess expenditure shall be brought to the notice of the Council at its

next meeting;

(f) making recommendation to the Executive Committee for sanction of

likely expenditure upto twenty percent in excess of the estimates

previously sanctioned by the Council for the respective heads of the

annual budget.

(2) The Council shall have the power to review any decision taken by the Finance

Committee in the performance of the functions assigned to it.”

(o) for regulation 194, the following regulation shall be substituted, namely:-

“194. Maintenance of accounts. − (1) It shall be the duty of the Secretary to cause

to maintain proper books of accounts with respect to−

(a) all sums of money received and expended by the Institute and the

matters in respect of which the receipt and expenditure takes place;

(b) all sales and purchases of goods;

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(c) all the assets and liabilities of the Institute.

(2) The annual accounts of the Council shall be prepared for every year. Such

annual accounts shall comprise of the Balance Sheet of the Institute, Income and

Expenditure Account of the Institute comprising the surplus or deficit of the Institute

for that year, and Cash Flow Statement for that year.”;

(p) for regulation 197, the following regulation shall be substituted, namely:-

“197. Comparison of actual income and expenditure with budget estimates. −

(1) The Council shall approve the budget prior to the commencement of each

financial year indicating expenditure proposed to be incurred and anticipated

revenues for the forthcoming year. Such a budget apart from the other things shall

separately distinguish capital items and the revenue items.

(2) The budget for the capital items shall provide proposed expenditure apart

from the other items on land, building, capital equipments, books and library.

(3) The budget for revenue items should provide anticipated income and

proposed expenditure for the forthcoming year in relation to, apart from the other

items, in respect of distance education, examination, services to members and salary

and establishment.

(4) The budget so approved may be revised during the year to incorporate the

expected changes.

(5) The auditors of the Council shall also compare the actual income and

expenditure with the budget estimates approved by the Council and submit a report

to the Council on the material departures.”

Sd/-

(T. Karthikeyan )

Acting Secretary

Note:- The principal regulations were published in the Gazette of India, Extraordinary,

dated the 1st June, 1988 vide number 1-CA(7)/134/88 dated 1st June, 1988 and

subsequently amended by the following numbers:-

(i) Notification No.1-CA(7)/1/89 published in the Gazette of India dated 7th October,

1989

(ii) Notification No.1-CA(7)/10/90 published in the Gazette of India dated 19th January,

1991

(iii) Notification No.1-CA(7)/11/90 published in the Gazette of India dated 19th January,

1991

(iv) Notification No.1-CA(7)/12/91 published in the Gazette of India dated 23rd February,

1991

(v) Notification No.1-CA(7)/13/90 published in the Gazette of India dated 2nd February,

1991

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(vi) Notification No.1-CA(7)/19/92 published in the Gazette of India, dated 7th March,

1992

(vii) Notification No.1-CA(7)/28/95 published in the Gazette of India dated 1st September,

1995

(viii) Notification No.1-CA(7)/30/95 published in the Gazette of India, Extraordinary dated

13th March, 1996

(ix) Notification No.1-CA(7)/31/97 published in the Gazette of India, dated 16th August,

1997

(x) Notification No.1-CA(7)/44/99 published in the Gazette of India dated 26th February,

2000

(xi) Notification No.1-CA(7)/45/99 published in the Gazette of India, dated 26th February,

2000

(xii) Notification No.1-CA(7)/51/2000 published in the Gazette of India, Extraordinary,

dated 17th August, 2001

(xiii) Notification No.1-CA(7)/59/2001 published in the Gazette of India, Extraordinary

dated 28th September, 2001

(xiv) Notification No.1-CA(7)/64/2002 published in the Gazette of India, Extraordinary

dated 31st March, 2003

(xv) Notification No.1-CA(7)/64A/2003 published in the Gazette of India, Extraordinary

dated 4th December, 2003

(xvi) Notification No.1-CA(7)/83/2005 published in the Gazette of India, Extraordinary

dated 28th July, 2005

(xvii) Notification No.1-CA(7)/84/2005 published in the Gazette of India, weekly dated 17th

June, 2006

(xviii) Notification No.1-CA(7)/92/2006 published in the Gazette of India, Extraordinary

dated 13th September, 2006

(xix) Notification No.1-CA(7)/102/2007(E) published in the Gazette of India, Extraordinary

dated 17th August, 2007

 










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