By: Mrs. Surbhi Bansal
Members deemed to be in practice: If he
i) Engages himself in practice of accountancy, or
Offers to perform audit related services or holds himself out to the public as an accountant, or
Renders professional service or assistance in Matters of accountant interest etc., or,
Renders such other services which as per opinion of the council, to be rendered by C.A. in practice. (Mgt. consultancy service)
Explanation : (1) C.A. who is salaried employer of C.A. in practice shall be deemed to be in practice for limited purposes of training articled clerk.
C.A. shall be deemed to be in practice if he, in his professional capacity (not in personal/employee’s capacity) acts as liquidator, trustee, executor, adviser & same or takes up an appointment mate by Govt. or court or other legal authority. However for this purpose his engagement shouldn’t be on a salary-cum- full time basis.
Significance of certificate of Practice:
As per judicial ruling;
Once a member of ICAI appears before I.T. authorities etc. he can so appear only in his capacity as a C.A.
Thus for period of suspension, he can’t practice as I.T. practitioner even if he is having law degree.
Thus, a member of ICAI can’t have other capacity, separable from his capacity to practice as a member of the Institute.
A member in practice can’t use any other designation than that of a Chartered Accountant nor any other description whether in addition thereto or in substitution therefore. However they can use any other letter etc. indicating degree of other institutions.
Section 8 : Disabilities for purpose of membership :
If he isn’t 21 yrs. or
If he is of unsound mind as per a competent Court, or
Undischarged insolvent, or
Discharged insolvent but hasn’t obtained from the court a certificate starting that his insolvency was by misfortune without any misconduct on his part, or
Convicted of an offence involving moral turpitude unless he has been granted a pardon etc. or
If removed from membership of ICAI due to misconduct.
If the person fails to disclose the fact that he suffers from any of disabilities aforementioned, it will constitute professional misconduct on his part.
Section 21 : Procedure in enquires for disciplinary matters :
Complaint Council Disciplinary Committee Council High Court (if need arises)
Council whether it is
D.C. (Ist Schedule)
fit for case or not
(Having evidences explanation
& than recommended report
(Prima facie opinion
supply to council
Whether complaint is
fit. It is not deciding)
Pass the decision
Refer to H.C
(If in Ist Schedule to be removed
from register for more than 5 yrs.
if it falls in IInd schedule)
At first stage, council is framing just prima facie opinion with respect to complaint. ii) It is not deciding whether C.A is guilty or not.
iii) Normally no fresh evidences are permitted before council, once the disciplinary committee submitted its report to council. However council may permitted the same at its own discretion. iv) The recommendation report of D.C. in to be given to C. A concerned before submitting it to the council & it is also giving opportunity of being heard. v) The C.A. concerned will appear to council either himself or may be represented by some other C.A (not by Lower) vi) Without any complaint, the council may also take any action suo-moto.
Section 24: Penalty for falsely claiming to be a member :
Any person who :
Not being member of ICAI represents that he is a member of Institute or...
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