The Cost Accountants Act, 1959
Administered Ministry: Ministry of Corporate Affairs
Act details
| Short title | The Cost Accountants Act, 1959 |
|---|---|
| Long title | An Act to make provision for the regulation of the profession of cost and works accountants. |
| Act number | 23 of 1959 |
| Act year | 1959 |
| Enactment date | 19 May 1959 |
| Ministry | Ministry of Corporate Affairs |
| Jurisdiction | Central (Parliament of India) |
| Sections | 59 |
| Schedules | 2 |
| Status | Not repealed |
| Last checked on India Code | 4 Nov 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Cost Accountants Act, 1959
Objective
• Regulate and develop the profession of cost accountants in India.
Key Provisions
1. Institution Establishment
• The Institute of Cost Accountants of India is established as a body corporate with perpetual succession and a common seal.
2. Membership & Eligibility
• Includes former members of the dissolved "Institute of Cost and Works Accountants", those passing prescribed exams, practicing cost accountants in India, and holders of recognized foreign qualifications.
• Designations: Associates (ACMA) and Fellows.
3. Governance Structure
• Council of the Institute: Manages the Institute's affairs.
• Officers and Committees: Provision for appointment and formation.
4. Professional Conduct & Discipline
• Defined Misconduct: Leads to disciplinary actions (reprimand, removal, fines).
• Disciplinary Bodies:
• Disciplinary Directorate
• Board of Discipline
• Disciplinary Committee
• Appellate Authority: Shared mechanism with modifications.
5. Penalties for Non-Compliance
• Falsely claiming membership or practicing without a certificate.
• Unauthorized use of the Institute's name or awarding degrees.
• Companies practicing as cost accountants without authorization.
• Unqualified persons signing cost accountancy documents.
6. Dissolution and Succession
• Dissolution of Predecessor Institute: Transfer of assets, liabilities, and provisions for employees.
7. Notable Amendments
• Act 7 of 2006, Act 10 of 2012, and Act 12 of 2022 (including the name change to "Cost Accountants Act, 1959").
Legislative history
Legislative History:
The Cost Accountants Act, 1959
Act Title - The Cost Accountants Act, 1959
Act Number / Year - 23 of 1959
Act ID (India Code) - 195923
Presidential Assent Date - May 19, 1959
Enforcement Date - Enforced on May 28, 1959
Nodal Ministry - Ministry of Corporate Affairs
Precedent & Historical Rationale
● Statutory Recognition of Cost Accountancy: Enacted to regulate and professionalize the practice of cost and works accountancy in India, granting formal statutory recognition to the profession to support post-independence industrial growth and financial discipline.
● Establishment of the Regulatory Body: Formulated to establish the Institute of Cost and Works Accountants of India (ICWAI, now ICAI - Cost) as an autonomous statutory body responsible for setting professional standards, conducting examinations, and maintaining disciplinary control over members.
Parliamentary Trajectory & Enactment
● Formulation: Introduced by the Central Government to replace the registered society model with a formal statutory institute under Parliamentary law.
● Parliamentary Passage: Debated and passed by both Houses of Parliament (Second Lok Sabha and Rajya Sabha) in May 1959.
● Presidential Assent: Received Presidential Assent on May 19, 1959.
● Enforcement: Enforced on May 28, 1959.
Source: Official Record of Parliament, India Code, and Ministry of Corporate Affairs.