The Cost Accountants Act, 1959
Administered Ministry: Ministry of Corporate Affairs
Section
Section 1 Short title, extent and commencement. 2 docs
(1) This Act may be called the Cost and Works Accountants Act, 1959.
(2) It extends to the whole of India 1****;
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
(2) It extends to the whole of India 1****;
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
1. The words "except the State of Jammu and Kashmir" omitted by Act 25 of 1968, s. 2 and the Schedule (w.e.f. 15-8-1968).
2. 28th May, 1959, vide notification No. G.S.R. 610, dated 25th May, 1959, see Gazette of India, Extraordinry, Part II, sec. 3(i).
2. 28th May, 1959, vide notification No. G.S.R. 610, dated 25th May, 1959, see Gazette of India, Extraordinry, Part II, sec. 3(i).
Section 2 Definitions and interpretation.
(1) In this Act, unless the context otherwise requires,--
(a) "associate" means an associate member of the Institute;
1[(aa) "Authority" means the Appellate Authority referred to in section 22A;
(aaa) "Board" means the Quality Review Board constituted under section 29A];
2[(ab) Board of Discipline" means the Board of Discipline constituted under sub-section (1) of section 21A;
(ac) "Companies Act" means the Companies Act, 2013 (18 of 2013) or any other previous company law as defined in clause (67) of section 2 of the said Act;]
(b) cost accountant means a person who is a member of the Institute;
(c) Council means the Council of the Institute 2[constituted under section 9];
2[(ca) "Director (Discipline)" means the Director (Discipline) referred to in section 21 and includes Joint Director (Discipline);
(cb)"Disciplinary Committee"means the Disciplinary Committee constituted under sub-section (1) of section 21B;
(cc) "Disciplinary Directorate" means the Disciplinary Directorate established under sub-section (1) of section 21;]
(d) "dissolved" company means the Institute of Cost and Works Accountants registered under the Companies Act, 3****;
4[(e) "fellow" means a fellow member of the Institute];
5[(ea) "firm" shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932), and includes,--
(i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); or
(ii) the sole proprietorship,
registered with the Institute;]
(f) "Institute" means the 6[Institute of Cost Accountants of India] constituted under this Act;
7[(fa) "notification" means a notification published in the Official Gazette and the term notify shall be construed accordingly;]
8[(fb) partner shall have the meaning assigned to it in section 4 of the Indian Partnership Act,1932 (9 of 1932) or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be;
(fc) "partnership" means--
(A) a partnership as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932); or
(B) a limited liability partnership which has no company as its Partner;]
(g) "prescribed" means prescribed by regulations made under this Act;
(h) "President" means the President of the Council;
9[(i) "Register" means the Register of members of the Institute maintained under section 19 or Register of firms of the Institute maintained under section 20B, as the case may be;]
;
10[(ia) "specified" means specified by rules made by the Central Government under this Act;
8[(iaa) sole proprietorship means an individual who engages himself in the practice of cost accountancy or offers to perform services referred to in clauses (ii) to (iv) of sub-section (2);]
2[(iaaa) "Standing Committee" means a Standing Committee constituted under sub-section (1) of section 17;]
(ib) "Tribunal" means a Tribunal established under sub-section (1) of section 10B;]
(j) "Vice-President" means the Vice-President of the Council;
(k) "year" means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year.
(2) Save as otherwise provided in this Act, a member of the Institute shall be deemed to be in practice when, individually or in partnership with one or more members of the Institute in practice, 8[or in partnership with members of such other recognised professions as may be prescribed] he, in consideration of remuneration received or to be received,--
(i) engages himself in the practice of 11[cost accountancy]; or
(ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or 12[certification or auditing of cost accounting and related statements or holds himself out to the public as a cost accountant in practice]; or
(iii) renders professional services or assistance in or about matters of principle or detail relating to cost accounting procedure or the recording, presentation or certification of costing facts or data; or
(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a cost accountant in practice;
and the words to be in practice, with their grammatical variations and cognate expressions, shall be construed accordingly.
Explanation.--A member of the Institute who is a whole-time salaried employee of any person shall not be deemed to be in practice within the meaning of this sub-section.
(a) "associate" means an associate member of the Institute;
1[(aa) "Authority" means the Appellate Authority referred to in section 22A;
(aaa) "Board" means the Quality Review Board constituted under section 29A];
2[(ab) Board of Discipline" means the Board of Discipline constituted under sub-section (1) of section 21A;
(ac) "Companies Act" means the Companies Act, 2013 (18 of 2013) or any other previous company law as defined in clause (67) of section 2 of the said Act;]
(b) cost accountant means a person who is a member of the Institute;
(c) Council means the Council of the Institute 2[constituted under section 9];
2[(ca) "Director (Discipline)" means the Director (Discipline) referred to in section 21 and includes Joint Director (Discipline);
(cb)"Disciplinary Committee"means the Disciplinary Committee constituted under sub-section (1) of section 21B;
(cc) "Disciplinary Directorate" means the Disciplinary Directorate established under sub-section (1) of section 21;]
(d) "dissolved" company means the Institute of Cost and Works Accountants registered under the Companies Act, 3****;
4[(e) "fellow" means a fellow member of the Institute];
5[(ea) "firm" shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932), and includes,--
(i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); or
(ii) the sole proprietorship,
registered with the Institute;]
(f) "Institute" means the 6[Institute of Cost Accountants of India] constituted under this Act;
7[(fa) "notification" means a notification published in the Official Gazette and the term notify shall be construed accordingly;]
8[(fb) partner shall have the meaning assigned to it in section 4 of the Indian Partnership Act,1932 (9 of 1932) or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be;
(fc) "partnership" means--
(A) a partnership as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932); or
(B) a limited liability partnership which has no company as its Partner;]
(g) "prescribed" means prescribed by regulations made under this Act;
(h) "President" means the President of the Council;
9[(i) "Register" means the Register of members of the Institute maintained under section 19 or Register of firms of the Institute maintained under section 20B, as the case may be;]
;
10[(ia) "specified" means specified by rules made by the Central Government under this Act;
8[(iaa) sole proprietorship means an individual who engages himself in the practice of cost accountancy or offers to perform services referred to in clauses (ii) to (iv) of sub-section (2);]
2[(iaaa) "Standing Committee" means a Standing Committee constituted under sub-section (1) of section 17;]
(ib) "Tribunal" means a Tribunal established under sub-section (1) of section 10B;]
(j) "Vice-President" means the Vice-President of the Council;
(k) "year" means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year.
(2) Save as otherwise provided in this Act, a member of the Institute shall be deemed to be in practice when, individually or in partnership with one or more members of the Institute in practice, 8[or in partnership with members of such other recognised professions as may be prescribed] he, in consideration of remuneration received or to be received,--
(i) engages himself in the practice of 11[cost accountancy]; or
(ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or 12[certification or auditing of cost accounting and related statements or holds himself out to the public as a cost accountant in practice]; or
(iii) renders professional services or assistance in or about matters of principle or detail relating to cost accounting procedure or the recording, presentation or certification of costing facts or data; or
(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a cost accountant in practice;
and the words to be in practice, with their grammatical variations and cognate expressions, shall be construed accordingly.
Explanation.--A member of the Institute who is a whole-time salaried employee of any person shall not be deemed to be in practice within the meaning of this sub-section.
1. Ins. by Act 7 of 2006, s. 2 (w.e.f. 8-8-2006).
2. Ins. by Act 12 of 2022, s. 40 (w.e.f. 10-5-2022).
3. The figure "1956" omitted by s. 40, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 40, ibid., for clause (e) (w.e.f. 10-5-2022).
5. Ins. by Act 10 of 2012, s. 2 (w.e.f. 1-2-2012).
6. Subs. by s. 2, ibid., for "Institute of Cost and Works Accountants of India" (w.e.f. 1-2-2012).
7. Subs. by Act 12 of 2022, s. 40, for clause (fa) (w.e.f. 10-5-2022).
8. Ins. by Act 10 of 2012, s. 2 (w.e.f. 1-2-2012).
9. Subs. by Act 12 of 2022, s. 40, for clause (i) (w.e.f. 10-5-2022).
10. Ins. by Act 7 of 2006, s. 2 (w.e.f. 8-8-2006).
11. Subs. by s. 2, ibid., for cost and works accountancy (w.e.f. 1-2-2012).
12. Subs. by s. 2, ibid., for certification of cost accounting and related statements or holds himself out to the public as a cost accountant in practice (w.e.f. 1-2-2012).
2. Ins. by Act 12 of 2022, s. 40 (w.e.f. 10-5-2022).
3. The figure "1956" omitted by s. 40, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 40, ibid., for clause (e) (w.e.f. 10-5-2022).
5. Ins. by Act 10 of 2012, s. 2 (w.e.f. 1-2-2012).
6. Subs. by s. 2, ibid., for "Institute of Cost and Works Accountants of India" (w.e.f. 1-2-2012).
7. Subs. by Act 12 of 2022, s. 40, for clause (fa) (w.e.f. 10-5-2022).
8. Ins. by Act 10 of 2012, s. 2 (w.e.f. 1-2-2012).
9. Subs. by Act 12 of 2022, s. 40, for clause (i) (w.e.f. 10-5-2022).
10. Ins. by Act 7 of 2006, s. 2 (w.e.f. 8-8-2006).
11. Subs. by s. 2, ibid., for cost and works accountancy (w.e.f. 1-2-2012).
12. Subs. by s. 2, ibid., for certification of cost accounting and related statements or holds himself out to the public as a cost accountant in practice (w.e.f. 1-2-2012).
Section 3 Incorporation of the Institute. 1 docs
(1) All persons whose names are entered in the Register at the commencement of this Act and all persons who may hereafter have their names entered in the Register under the provisions of this Act, so long as they continue to have their names borne on the said Register, are hereby constituted a body corporate by the name of the 1[Institute of Cost Accountants of India], and all such persons shall be known as members of the Institute.
(2) The Institute shall have perpetual succession and a common seal, and shall have power to acquire, hold and dispose of property, both movable and immovable, and shall by its name sue or be sued.
(2) The Institute shall have perpetual succession and a common seal, and shall have power to acquire, hold and dispose of property, both movable and immovable, and shall by its name sue or be sued.
1. Subs. by s. 3, ibid., for Institute of Cost and Works Accountants of India (w.e.f. 1-2-2012).
Section 4 Entry of names in the Register of members. 1 docs
(1) Any of the following persons shall be entitled to have his name entered in the 1[Register of members], namely:--
(i) any person who was an associate or a fellow of the dissolved company (other than an honorary associate or honorary fellow thereof) immediately before the commencement of this Act, except any such person who is not a permanent resident of India and is not at such commencement practicing as a cost accountant in India;
(ii) any person who has passed such examination and completed such training as may be prescribed for members of the Institute;
(iii) any person who, at the commencement of this Act, is engaged in the practice of cost accountancy in India and who fulfills such conditions as the Central Government or the Council may specify in this behalf;
(iv) any person who has passed such other examination and completed such other training 2[outside India] as is recognised by the Central Government or the Council as being equivalent to the examination and training prescribed for members of the Institute:
Provided that in the case of any person who is not permanently residing in India, the Central Government or the Council may impose such further conditions as it may deem fit;
(v) any person domiciled in India, who at the commencement of this Act is studying for any foreign examination and is at the same time undergoing training, whether within or 2[outside India], or, who, having passed such examination, is at such commencement undergoing training whether within or 2[outside India]:
Provided that such foreign examination and training are recognised by the Central Government or the Council in this behalf:
Provided further that the person passes the examination and completes his training within five years from the commencement of this Act.
(2) Every person belonging to the class mentioned in clause (i) of sub-section (1) shall have his name entered in the 1[Register of members] without the payment of any entrance fee.
3[(3) Every person belonging to any of the classes mentioned in clauses (ii), (iii), (iv) and (v) of sub-section (1) shall have his name entered in the 1[Register of members] on an application being made and granted in the prescribed manner and on payment of such fees, as may be determined, by notification, by the Council 4***:
5*****]
(4) The Central Government shall take such steps as may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (i) of sub-section (1) entered in the 1[Register of members] at the commencement of this Act.
(i) any person who was an associate or a fellow of the dissolved company (other than an honorary associate or honorary fellow thereof) immediately before the commencement of this Act, except any such person who is not a permanent resident of India and is not at such commencement practicing as a cost accountant in India;
(ii) any person who has passed such examination and completed such training as may be prescribed for members of the Institute;
(iii) any person who, at the commencement of this Act, is engaged in the practice of cost accountancy in India and who fulfills such conditions as the Central Government or the Council may specify in this behalf;
(iv) any person who has passed such other examination and completed such other training 2[outside India] as is recognised by the Central Government or the Council as being equivalent to the examination and training prescribed for members of the Institute:
Provided that in the case of any person who is not permanently residing in India, the Central Government or the Council may impose such further conditions as it may deem fit;
(v) any person domiciled in India, who at the commencement of this Act is studying for any foreign examination and is at the same time undergoing training, whether within or 2[outside India], or, who, having passed such examination, is at such commencement undergoing training whether within or 2[outside India]:
Provided that such foreign examination and training are recognised by the Central Government or the Council in this behalf:
Provided further that the person passes the examination and completes his training within five years from the commencement of this Act.
(2) Every person belonging to the class mentioned in clause (i) of sub-section (1) shall have his name entered in the 1[Register of members] without the payment of any entrance fee.
3[(3) Every person belonging to any of the classes mentioned in clauses (ii), (iii), (iv) and (v) of sub-section (1) shall have his name entered in the 1[Register of members] on an application being made and granted in the prescribed manner and on payment of such fees, as may be determined, by notification, by the Council 4***:
5*****]
(4) The Central Government shall take such steps as may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (i) of sub-section (1) entered in the 1[Register of members] at the commencement of this Act.
1. Subs. by Act 12 of 2022, s. 42, for “Register” (w.e.f. 10-5-2022).
2. Subs. by s. 42, ibid., for “without India” (w.e.f. 10-5-2022).
3. Subs. by Act 7 of 2006, s. 3, for sub-section (3) (w.e.f. 8-8-2006).
4. The words “, which shall not exceed rupees three thousand” omitted by Act 12 of 2022, s. 42 (w.e.f. 10-5-2022).
5. The proviso omitted by s. 42, ibid. (w.e.f. 10-5-2022).
2. Subs. by s. 42, ibid., for “without India” (w.e.f. 10-5-2022).
3. Subs. by Act 7 of 2006, s. 3, for sub-section (3) (w.e.f. 8-8-2006).
4. The words “, which shall not exceed rupees three thousand” omitted by Act 12 of 2022, s. 42 (w.e.f. 10-5-2022).
5. The proviso omitted by s. 42, ibid. (w.e.f. 10-5-2022).
Section 5 Fellows and Associates.
(1) The members of the Institute shall be divided into two classes designated respectively as associates and fellows.
(2) Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the 1[Register of members], be deemed to have become an associate member of the Institute and so long as his name remains so entered, shall be entitled to use the letters 2[ACMA] after his name to indicate that he is an associate member of the 3[Institute of Cost Accountants of India].
(3) Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the 1[Register of members] under clause (i) of sub-section (1) of section 4, shall be entered in the 1[Register of members]as a fellow of the Institute.
4[(4) A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of this Act, or whether partly before and partly after the commencement of this Act, and a member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a cost accountant shall, on payment of such fees, as may be determined, by notification, by the Council, 5***, and on application made and granted in the prescribed manner, be entered in the Register as a fellow of the Institute
6*****.
Explanation I.--For the purposes of this sub-section, a person shall be deemed to have practiced in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practice during that period.
Explanation II.--In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which the person has been an associate of the dissolved company immediately before he became an associate of the Institute.]
(5) Any person whose name is entered in the1[Register of members] as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letters 7[FCMA] after his name to indicate that he is a fellow of the 3[Institute of Cost Accountants of India].
(2) Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the 1[Register of members], be deemed to have become an associate member of the Institute and so long as his name remains so entered, shall be entitled to use the letters 2[ACMA] after his name to indicate that he is an associate member of the 3[Institute of Cost Accountants of India].
(3) Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the 1[Register of members] under clause (i) of sub-section (1) of section 4, shall be entered in the 1[Register of members]as a fellow of the Institute.
4[(4) A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of this Act, or whether partly before and partly after the commencement of this Act, and a member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a cost accountant shall, on payment of such fees, as may be determined, by notification, by the Council, 5***, and on application made and granted in the prescribed manner, be entered in the Register as a fellow of the Institute
6*****.
Explanation I.--For the purposes of this sub-section, a person shall be deemed to have practiced in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practice during that period.
Explanation II.--In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which the person has been an associate of the dissolved company immediately before he became an associate of the Institute.]
(5) Any person whose name is entered in the1[Register of members] as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letters 7[FCMA] after his name to indicate that he is a fellow of the 3[Institute of Cost Accountants of India].
1. Subs. by Act 12 of 2022, s. 43, for "Register" (w.e.f. 10-5-2022).
2. Subs. by Act 10 of 2012, s. 4, for "AICWA" (w.e.f. 1-2-2012).
3. Subs. by s. 4, for "Institute of Cost and Works Accountants" (w.e.f. 1-2-2012).
4. Subs. by Act 7 of 2006, s. 4, for sub-section (4) (w.e.f. 8-8-2006).
5. The words "which shall not exceed rupees five thousand," omitted by Act 12 of 2022, s. 43 (w.e.f. 10-5-2022).
6. The proviso omitted by s. 43, ibid. (w.e.f. 10-5-2022).
7. Subs. by Act 10 of 2012, s. 4, for "FICWA" (w.e.f.1-2-2012).
2. Subs. by Act 10 of 2012, s. 4, for "AICWA" (w.e.f. 1-2-2012).
3. Subs. by s. 4, for "Institute of Cost and Works Accountants" (w.e.f. 1-2-2012).
4. Subs. by Act 7 of 2006, s. 4, for sub-section (4) (w.e.f. 8-8-2006).
5. The words "which shall not exceed rupees five thousand," omitted by Act 12 of 2022, s. 43 (w.e.f. 10-5-2022).
6. The proviso omitted by s. 43, ibid. (w.e.f. 10-5-2022).
7. Subs. by Act 10 of 2012, s. 4, for "FICWA" (w.e.f.1-2-2012).
Section 6 Certificate of practice.
(1) No member of the Institute shall be entitled to practise, whether in India or elsewhere, unless he has obtained from the Council a certificate of practice.
1[(2) Every such member shall make an application in such form, and pay such annual fee, for his certificate as may be determined, by notification, by the Council, 2*** and such fee shall be payable on or before the 1st day of April in each year:
3*****:
4[Provided that] if a member of the Institute, who was in practice immediately before the commencement of this Act, has made within one month of such commencement an application for the grant of certificate of practice, he shall not be deemed to have contravened the provisions of sub-section (1) by reason of his having practiced during the period between such commencement and the disposal of the application;]
5[(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be prescribed.]
1[(2) Every such member shall make an application in such form, and pay such annual fee, for his certificate as may be determined, by notification, by the Council, 2*** and such fee shall be payable on or before the 1st day of April in each year:
3*****:
4[Provided that] if a member of the Institute, who was in practice immediately before the commencement of this Act, has made within one month of such commencement an application for the grant of certificate of practice, he shall not be deemed to have contravened the provisions of sub-section (1) by reason of his having practiced during the period between such commencement and the disposal of the application;]
5[(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be prescribed.]
1. Subs. by Act 7 of 2006, s. 5, for sub-section (2) (w.e.f. 8-8-2006).
2. The words “which shall not exceed rupees three thousand” omitted by Act 12 of 2022, s. 44 (w.e.f. 10-5-2022).
3.The proviso omitted by s. 44, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 44, ibid., for “Provided further that” (w.e.f. 10-5-2022).
5. Ins. by s. 5, ibid. (w.e.f. 8-8-2006).
2. The words “which shall not exceed rupees three thousand” omitted by Act 12 of 2022, s. 44 (w.e.f. 10-5-2022).
3.The proviso omitted by s. 44, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 44, ibid., for “Provided further that” (w.e.f. 10-5-2022).
5. Ins. by s. 5, ibid. (w.e.f. 8-8-2006).
Section 7 Members to be known as cost accountants.
Every member of the Institute in practice shall, and any other member may, use the designation of a cost accountant and no member using such designation shall use any other description, whether in addition thereto or in substitution therefore:
Provided that nothing in this section shall be deemed to prohibit any such member from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute of accountancy, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as cost accountants.
Provided that nothing in this section shall be deemed to prohibit any such member from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute of accountancy, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as cost accountants.
Section 8 Disabilities. 1 docs
Notwithstanding anything contained in section 4, a person shall not be entitled to have his name entered in, or borne on, the 1[Register of members] if he--
(i) has not attained the age of twenty-one years at the time of his application for the entry of his name in the 1[Register of members]; or
(ii) is of unsound mind and stands so adjudged by a competent court; or
(iii) is an undischarged insolvent 2[or undischarged bankrupt]; or
2[(iiia) is declared bankrupt under the Insolvency and Bankruptcy Code, 2016 (31 of 2016);]
(iv) being a discharged insolvent, has not obtained from the court a certificate stating that his insolvency was caused by misfortune without any misconduct on his part; or
(v) has been convicted by a competent court whether within or 3[outside India], of an offence involving moral turpitude and punishable with imprisonment or of an offence, not of a technical nature, committed by him in his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the Central Government has, by an order in writing removed the disability; or
(vi) has been removed from membership of the Institute on being found on inquiry to have been guilty of professional or other misconduct:
Provided that a person who has been removed from membership for a specified period, shall not be entitled to have his name entered in the 1[Register of members] until the expiry of such period.
(i) has not attained the age of twenty-one years at the time of his application for the entry of his name in the 1[Register of members]; or
(ii) is of unsound mind and stands so adjudged by a competent court; or
(iii) is an undischarged insolvent 2[or undischarged bankrupt]; or
2[(iiia) is declared bankrupt under the Insolvency and Bankruptcy Code, 2016 (31 of 2016);]
(iv) being a discharged insolvent, has not obtained from the court a certificate stating that his insolvency was caused by misfortune without any misconduct on his part; or
(v) has been convicted by a competent court whether within or 3[outside India], of an offence involving moral turpitude and punishable with imprisonment or of an offence, not of a technical nature, committed by him in his professional capacity unless in respect of the offence committed he has either been granted a pardon or, on an application made by him in this behalf, the Central Government has, by an order in writing removed the disability; or
(vi) has been removed from membership of the Institute on being found on inquiry to have been guilty of professional or other misconduct:
Provided that a person who has been removed from membership for a specified period, shall not be entitled to have his name entered in the 1[Register of members] until the expiry of such period.
1. Subs. by Act 12 of 2022, s. 45, for "Register" (w.e.f. 10-5-2022).
2. Ins. by s. 45, ibid. (w.e.f. 10-5-2022).
3. Subs. by s. 45, ibid., for "without India" (w.e.f. 10-5-2022).
2. Ins. by s. 45, ibid. (w.e.f. 10-5-2022).
3. Subs. by s. 45, ibid., for "without India" (w.e.f. 10-5-2022).
Section 9 Constitution of the Council of the Institute. 2 docs
(1) There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it by or under this Act.
1[(2) The Council shall be composed of the following persons, namely:—
(a) not more than fifteen persons elected by the members of the Institute, from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified:
Provided that a fellow of the Institute, who has been found guilty of any professional or other misconduct, and whose name is removed from the 2[Register of members] or has been awarded penalty of fine, shall not be eligible to contest the election,—
(i) in case of misconduct falling under the First Schedule of this Act, for a period of 3[four years];
(ii) in case of misconduct falling under the Second Schedule of this Act, for a period of 4[eight years], from the completion of the period of removal of name from the 2[Register of members] or payment of fine, as the case may be;
(b) not more than five persons nominated in the specified manner by the Central Government.]
5[(3) No person holding a post under the Central Government or a State Government shall be eligible for election to the Council under clause (a) of sub-section (2).
(4) No 6[member of the Institute or any partner of a firm] who has been auditor of the Institute shall be eligible for election to the Council under clause (a) of sub-section (2) for a period of 7 [four years] after he ceases to be an auditor.]
1[(2) The Council shall be composed of the following persons, namely:—
(a) not more than fifteen persons elected by the members of the Institute, from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified:
Provided that a fellow of the Institute, who has been found guilty of any professional or other misconduct, and whose name is removed from the 2[Register of members] or has been awarded penalty of fine, shall not be eligible to contest the election,—
(i) in case of misconduct falling under the First Schedule of this Act, for a period of 3[four years];
(ii) in case of misconduct falling under the Second Schedule of this Act, for a period of 4[eight years], from the completion of the period of removal of name from the 2[Register of members] or payment of fine, as the case may be;
(b) not more than five persons nominated in the specified manner by the Central Government.]
5[(3) No person holding a post under the Central Government or a State Government shall be eligible for election to the Council under clause (a) of sub-section (2).
(4) No 6[member of the Institute or any partner of a firm] who has been auditor of the Institute shall be eligible for election to the Council under clause (a) of sub-section (2) for a period of 7 [four years] after he ceases to be an auditor.]
1. Subs. by Act 7 of 2006, s. 6, for sub-section (2) (w.e.f. 17-11-2006).
2. Subs. by Act 12 of 2022, s. 46, for "Register" (w.e.f. 10-5-2022).
3. Subs. by s. 46, ibid., for "three years" (w.e.f. 10-5-2022).
4. Subs. by s. 46, ibid., for "six years" (w.e.f. 10-5-2022).
5. Ins. by s. 6, ibid. (w.e.f. 17-11-2006).
6. Subs. by Act 12 of 2022, s. 46, for "person" (w.e.f. 10-5-2022).
7.Subs. by s. 46, ibid., for "three years" (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 46, for "Register" (w.e.f. 10-5-2022).
3. Subs. by s. 46, ibid., for "three years" (w.e.f. 10-5-2022).
4. Subs. by s. 46, ibid., for "six years" (w.e.f. 10-5-2022).
5. Ins. by s. 6, ibid. (w.e.f. 17-11-2006).
6. Subs. by Act 12 of 2022, s. 46, for "person" (w.e.f. 10-5-2022).
7.Subs. by s. 46, ibid., for "three years" (w.e.f. 10-5-2022).
Section 10 Re-election or re-nomination to Council.
1[10. Re-election or re-nomination to Council.--A member of the Council, elected or nominated under sub-section (2) of section 9, shall be eligible for re-election or as the case may be, re-nomination:
Provided that no member shall hold the office for more than two consecutive terms:
Provided further that a member of the Council, who is or has been elected as President under sub-section (1) of section 12, shall not be eligible for election or nomination as a member of the Council.]
Provided that no member shall hold the office for more than two consecutive terms:
Provided further that a member of the Council, who is or has been elected as President under sub-section (1) of section 12, shall not be eligible for election or nomination as a member of the Council.]
1. Subs. by s. 7, ibid., for section 10 (w.e.f. 17-11-2006).
Section 10A Settlement of disputes regarding election.
1[10A. Settlement of disputes regarding election.--In case of any dispute regarding any election under clause (a) of sub-section (2) of section 9, the aggrieved person may make an application within thirty days from the date of declaration of the result of election to the Secretary of the Institute, who shall forward the same to the Central Government.]
1. Ins. by Act 7 of 2006, s. 8 (w.e.f. 17-11-2006).
Section 10B Establishment of Tribunal. 7 docs
1[10B. Establishment of Tribunal.(1) On receipt of any application under section 10A, the Central Government shall, by notification, establish a Tribunal consisting of a Presiding Officer and two other Members to decide such dispute and the decision of such Tribunal shall be final.
(2) A person shall not be qualified for appointment,--
(a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal Service and has held a post in Grade I of the service for at least three years;
(b) as a Member unless he has been a member of the Council for at least one full term, and who is not a sitting member of the Council or who has not been a candidate in the election under dispute; or
(c) as a Member unless he holds the post of a Joint Secretary to the Government of India or any other post under the Central Government carrying a scale of pay which is not less than that of a Joint Secretary to the Government of India.
(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their place of meetings and allowances shall be such as may be specified.
(4) The expenses of the Tribunal shall be borne by the Council.]
(2) A person shall not be qualified for appointment,--
(a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal Service and has held a post in Grade I of the service for at least three years;
(b) as a Member unless he has been a member of the Council for at least one full term, and who is not a sitting member of the Council or who has not been a candidate in the election under dispute; or
(c) as a Member unless he holds the post of a Joint Secretary to the Government of India or any other post under the Central Government carrying a scale of pay which is not less than that of a Joint Secretary to the Government of India.
(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their place of meetings and allowances shall be such as may be specified.
(4) The expenses of the Tribunal shall be borne by the Council.]
1. Ins. by Act 7 of 2006, s. 8 (w.e.f. 17-11-2006).
Section 11 Nomination in default of election.
If the members of the Institute fail to elect any member under clause (a) of sub-section (2) of section 9 from any of the regional constituencies that may be specified under that clause, the Central Government may nominate any duly qualified person from such constituency to fill the vacancy, and any person so nominated shall be deemed to be a duly elected member of the Council.
Section 12 President and Vice-president.
(1) The Council at its first meeting shall elect two of its members to be respectively the President and the Vice-President thereof, and so often as the office of the President or the Vice-President becomes vacant, the Council shall choose a person to be the President or the Vice-President, as the case may be:
1*****.
(2) The President shall be the 2[Head] of the Council.
(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond his term of office as a member of the Council, and, subject to his being a member of the Council at the relevant time, he shall be eligible for re-election 3[under sub-section (1)]:
Provided that 4[the President and the Vice-President] of the Council at the time of the expiration of its duration shall continue to hold office until a new Council is constituted in accordance with the provisions of this Act.
1*****.
(2) The President shall be the 2[Head] of the Council.
(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond his term of office as a member of the Council, and, subject to his being a member of the Council at the relevant time, he shall be eligible for re-election 3[under sub-section (1)]:
Provided that 4[the President and the Vice-President] of the Council at the time of the expiration of its duration shall continue to hold office until a new Council is constituted in accordance with the provisions of this Act.
1. The proviso omitted by Act 12 of 2022, s. 47 (w.e.f. 10-5-2022).
2. Subs. by s. 7, ibid., for "Chief Executive Authority" (w.e.f. 8-8-2006).
3. Ins. by s. 9, ibid. (w.e.f. 8-8-2006).
4. Subs. by s. 9, ibid., for "the President" (w.e.f. 8-8-2006).
2. Subs. by s. 7, ibid., for "Chief Executive Authority" (w.e.f. 8-8-2006).
3. Ins. by s. 9, ibid. (w.e.f. 8-8-2006).
4. Subs. by s. 9, ibid., for "the President" (w.e.f. 8-8-2006).
Section 13 Resignation of membership and casual vacancies.
(1) Any member of the Council may at any time resign his membership by writing under his hand addressed to the President, and the seat of such member shall become vacant when such resignation is notified in the Official Gazette.
(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient excuse from three consecutive meetings of the Council 1[or he has been found guilty of any professional or other misconduct and awarded penalty of fine], or if his name is, for any cause, removed from the 2[Register of members] under the provisions of section 20.
(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall hold office until the dissolution of the Council:
Provided that no election shall be held to fill a casual vacancy occurring within 3[one year] prior to the date of the expiration of the duration of the Council, but such a vacancy may be filled by the nomination by the Central Government after consultation with the President of the Council.
(4) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Council.
(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient excuse from three consecutive meetings of the Council 1[or he has been found guilty of any professional or other misconduct and awarded penalty of fine], or if his name is, for any cause, removed from the 2[Register of members] under the provisions of section 20.
(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall hold office until the dissolution of the Council:
Provided that no election shall be held to fill a casual vacancy occurring within 3[one year] prior to the date of the expiration of the duration of the Council, but such a vacancy may be filled by the nomination by the Central Government after consultation with the President of the Council.
(4) No act done by the Council shall be called in question on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Council.
1. Ins. by Act 7 of 2006, s. 10, (w.e.f. 17-11-2006).
2. Subs. by Act 12 of 2022, s. 48, for “Register” (w.e.f. 10-5-2022).
3. Subs. by s. 10, ibid., for six months (w.e.f. 8-8-2006).
2. Subs. by Act 12 of 2022, s. 48, for “Register” (w.e.f. 10-5-2022).
3. Subs. by s. 10, ibid., for six months (w.e.f. 8-8-2006).
Section 14 Duration and dissolution of Council.
(1) The duration of any Council constituted under this Act shall be 1[four years] from the date of its first meeting.
(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as the former Council), the former Council shall continue to exercise its functions under this Act until a new Council is constituted in accordance with the provisions of this Act, and on such constitution, the former Council shall stand dissolved.
(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as the former Council), the former Council shall continue to exercise its functions under this Act until a new Council is constituted in accordance with the provisions of this Act, and on such constitution, the former Council shall stand dissolved.
1. Subs. by s. 11, ibid., for three years (w.e.f. 22-7-2007).
Section 15 Functions of the Council.
1[15. Functions of Council.--(1) The Institute shall function under the overall control, guidance and supervision of the Council and the duty of carrying out the provisions of this Act shall be vested in the Council.
(2) In particular, and without prejudice to the generality of the foregoing powers, the duties of the Council shall include--
(a) to approve academic courses and their contents;
(b) the prescribing of fees for the examination of candidates for enrolment;
(c) the prescribing of qualifications for entry in the 2[Register of members];
(d) the recognition of foreign qualifications and training for the purposes of enrolment;
(e) the prescribing of guidelines for granting or refusal of certificates of practice under this Act;
3[(ea) the granting or refusal, of registration of a firm;]
(f) the levy of fees from members, examinees and other persons;
;
(h) the carrying out, by granting financial assistance to persons other than members of the Council or in any other manner, of research in accountancy;
(i) to enable functioning of the Director (Discipline), the Board of Discipline, the Disciplinary Committee and the Appellate Authority constituted under the provisions of this Act;
(j) to enable functioning of the Quality Review Board;
3[(ja) to issue guidelines for the purpose of carrying out the objects of this Act;
(jb) to conduct investor education and awareness programmes;
(jc) to enter into any memorandum or arrangement with the prior approval of the Central Government, with any agency of any foreign country, for the purpose of performing its functions under this Act;]
(k) consideration of the recommendations of the Quality Review Board made under clause (a) of section 29B 4[and the details of action taken thereon in its annual report]; and
(l) to ensure the functioning of the Institute in accordance with the provisions of this Act and in performance of other statutory duties as may be entrusted to the Institute from time to time.]
(2) In particular, and without prejudice to the generality of the foregoing powers, the duties of the Council shall include--
(a) to approve academic courses and their contents;
(b) the prescribing of fees for the examination of candidates for enrolment;
(c) the prescribing of qualifications for entry in the 2[Register of members];
(d) the recognition of foreign qualifications and training for the purposes of enrolment;
(e) the prescribing of guidelines for granting or refusal of certificates of practice under this Act;
3[(ea) the granting or refusal, of registration of a firm;]
(f) the levy of fees from members, examinees and other persons;
;
(h) the carrying out, by granting financial assistance to persons other than members of the Council or in any other manner, of research in accountancy;
(i) to enable functioning of the Director (Discipline), the Board of Discipline, the Disciplinary Committee and the Appellate Authority constituted under the provisions of this Act;
(j) to enable functioning of the Quality Review Board;
3[(ja) to issue guidelines for the purpose of carrying out the objects of this Act;
(jb) to conduct investor education and awareness programmes;
(jc) to enter into any memorandum or arrangement with the prior approval of the Central Government, with any agency of any foreign country, for the purpose of performing its functions under this Act;]
(k) consideration of the recommendations of the Quality Review Board made under clause (a) of section 29B 4[and the details of action taken thereon in its annual report]; and
(l) to ensure the functioning of the Institute in accordance with the provisions of this Act and in performance of other statutory duties as may be entrusted to the Institute from time to time.]
1. Subs. by s. 12, ibid., for section 15 (w.e.f. 17-11-2006).
2. Subs. by Act 12 of 2022, s. 49, for "Register" (w.e.f. 10-5-2022).
3. Ins. by s. 49, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 49, ibid., for ", action taken thereon with a report to the Central Government within a period of three months, and their inclusion in the annual report" (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 49, for "Register" (w.e.f. 10-5-2022).
3. Ins. by s. 49, ibid. (w.e.f. 10-5-2022).
4. Subs. by s. 49, ibid., for ", action taken thereon with a report to the Central Government within a period of three months, and their inclusion in the annual report" (w.e.f. 10-5-2022).
Section 15A Functions of Institute.
1[15A. Functions of Institute.--The functions of the Institute shall include--
(a) the examination of candidates for enrolment;
(b) the regulation of training of students;
(c) the maintenance and publication of a Register of persons qualified to practice as cost accountants;
2[(ca) the maintenance and publication of a Register of firms;]
(d) collection of fees from members, examinees and other persons;
(e) subject to the orders of the appropriate authorities under this Act, the removal of names from the 3[Register of members and firms and the restoration of names to the Register of members and firms] which have been removed;
(f) the maintenance of a library and publication of books and periodicals relating to accountancy and allied subjects;
(g) the conduct of elections to the Council of the Institute; and
(h) the granting or refusal of certificates of practice as per guidelines issued by the Council.]
(a) the examination of candidates for enrolment;
(b) the regulation of training of students;
(c) the maintenance and publication of a Register of persons qualified to practice as cost accountants;
2[(ca) the maintenance and publication of a Register of firms;]
(d) collection of fees from members, examinees and other persons;
(e) subject to the orders of the appropriate authorities under this Act, the removal of names from the 3[Register of members and firms and the restoration of names to the Register of members and firms] which have been removed;
(f) the maintenance of a library and publication of books and periodicals relating to accountancy and allied subjects;
(g) the conduct of elections to the Council of the Institute; and
(h) the granting or refusal of certificates of practice as per guidelines issued by the Council.]
1. Ins. by Act 7 of 2006, s. 13 (w.e.f. 17-11-2006).
2. Ins. by Act 12 of 2022, s. 50 (w.e.f. 10-5-2022).
3. Subs. by s. 50, ibid., for “Register and the restoration to the Register of names” (w.e.f. 10-5-2022).
2. Ins. by Act 12 of 2022, s. 50 (w.e.f. 10-5-2022).
3. Subs. by s. 50, ibid., for “Register and the restoration to the Register of names” (w.e.f. 10-5-2022).
Section 15B Imparting education by Universities and other bodies.
1[15B. Imparting education by Universities and other bodies.--(1) Subject to the provisions of this Act, any University established by law or any body affiliated to the Institute, may impart education on the subjects covered by the academic courses of the Institute.
(2) The Universities or bodies referred to in sub-section (1) shall, while awarding degree, diploma or certificate or bestowing any designation, ensure that the award or designation do not resemble or is not identical to one awarded by the Institute.
(3) Nothing contained in this section shall enable a University or a body to adopt a name or nomenclature which is in any way similar to that of the Institute.]
(2) The Universities or bodies referred to in sub-section (1) shall, while awarding degree, diploma or certificate or bestowing any designation, ensure that the award or designation do not resemble or is not identical to one awarded by the Institute.
(3) Nothing contained in this section shall enable a University or a body to adopt a name or nomenclature which is in any way similar to that of the Institute.]
1. Ins. by Act 7 of 2006, s. 13 (w.e.f. 17-11-2006).
Section 16 Officers and employees, salary, allowances, etc.
1[16. Officers and employees, salary, allowances, etc.--(1) For the efficient performance of its duties, the Council shall--
(a) appoint a Secretary of the Council to perform such duties as may be prescribed;
(b) appoint a Director (Discipline) to perform such functions as assigned to him under this Act and the rules and regulations framed thereunder;
(c) designate an officer of the Council or the Institute to carry out the administrative functions of the Institute as its chief executive.
(2) The Council may also--
(a) appoint such other officers and employees to the Council and the Institute as it considers necessary;
(b) require and take from the Secretary or from any other officer or employee of the Council and the Institute such security for the due performance of his duties, as the Council considers necessary;
2[(c) prescribe the manner of appointment, powers, duties and functions of the Secretary and other officers and employees, their salaries, fees, allowances and other terms and conditions of service];
(d) with the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the Council and members of its Committees.
(3) The Secretary of the Council shall be entitled to participate in the meetings of the Council but shall not be entitled to vote thereat.]
(a) appoint a Secretary of the Council to perform such duties as may be prescribed;
(b) appoint a Director (Discipline) to perform such functions as assigned to him under this Act and the rules and regulations framed thereunder;
(c) designate an officer of the Council or the Institute to carry out the administrative functions of the Institute as its chief executive.
(2) The Council may also--
(a) appoint such other officers and employees to the Council and the Institute as it considers necessary;
(b) require and take from the Secretary or from any other officer or employee of the Council and the Institute such security for the due performance of his duties, as the Council considers necessary;
2[(c) prescribe the manner of appointment, powers, duties and functions of the Secretary and other officers and employees, their salaries, fees, allowances and other terms and conditions of service];
(d) with the previous sanction of the Central Government, fix the allowances of the President, Vice-President and other members of the Council and members of its Committees.
(3) The Secretary of the Council shall be entitled to participate in the meetings of the Council but shall not be entitled to vote thereat.]
1. Subs. by s. 14, ibid., for section 16 (w.e.f. 17-11-2006).
2. Subs. by Act 12 of 2022, s. 51clause (ii), for clause (c) (w.e.f. 10-5-2022).
2. Subs. by Act 12 of 2022, s. 51clause (ii), for clause (c) (w.e.f. 10-5-2022).