Re: Use of Designation(s) other than the designation of “Chartered Accountant”

It has been brought to the notice of the Institute that some members are using the certain designation (s) other than Chartered Accountant in addition to the designation “Chartered Accountant’. In this regard, the attention of the members is drawn on Item (7) of Part-I of First Schedule to the Chartered Accountants Act, 1949 which provides that a Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a University established by law in India or recognised by the Central Government or a title indicating membership of the Institute of Chartered Accountants of India or of any other institution that has been recognised by the Central Government or may be recognised by the Council.

Further, attention of the members is also drawn to the following paras appearing at page no. 154 of the Code of Ethics, 2009 under commentary of Item (7):-

It is improper for a Chartered Accountant to state on his professional documents that he is an Income-tax Consultant, Cost Accountant, Company Secretary, Cost Consultant or a Management Consultant”.

“While noting that it had already allowed its members to appear before the various authorities including Company Law Board, Income Tax Appellate Tribunal, Sales Tax Tribunal where the law has permitted the same, so far as the designation “Corporate Lawyer” is concerned, the Council was of the view that as per the existing provisions of law, a Chartered Accountant in practice is not entitled to use the designation “Corporate Lawyer”.

“The members are not permitted to use the initials ‘CPA’ (standing for Certified Public Accountant) on their visiting cards”.

“Members of the Institute in practice who are otherwise eligible may also practice as Company Secretaries and/or Cost Accountants. Such members shall, however, not use designation/s of the aforesaid Institute/s simultaneously with the designation “Chartered Accountant”.

Section 7 of the Chartered Accountants Act, 1949 also provides that every member of the Institute in practice shall, and any other member may, use the designation of a chartered accountant and no member using such designation shall use any other description, whether in addition thereto or in substitution therefor unless such descriptions indicate the membership of any other accounting body recognized by the Council in this behalf or the qualification he may possess.

In view of the above, though the members are allowed to use the description as to their qualifications however members are not permitted to use any other designation alongwith the designation ‘Chartered Accountant’. Members are therefore advised to abstain from using any other designation with the designation ‘Chartered Accountant’ failing which they may be liable for disciplinary action, as per the provisions of the Chartered Accountants Act, 1949 and Rules/Regulations framed thereunder.

V. Sagar
Acting Secretary
The Institute of Chartered Accountants of India – 
18th February, 2015

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  1. Kirti Oswal says:

    As per one of the appendices to the CA Act 1949,(exact number depends on the amendment act one is referring to – “The Council decided that letters or description in respect of membership of bodies other than Accountancy Institutes can be used provided such use does not amount to the use of designation and in the case of Accountancy Institutes prior recognition of the Council in this behalf is necessary. It was also decided that in respect of Accountancy Institutes which are recognized and in respect of Institutes other than Accountancy Institutes the word London in brackets may be allowed to be added provided that in each case the respective Institutes had permitted such addition.”
    Further it also clarifies that ICWAI is not an accountancy body and as such members may use the letters for indicating it’s membership. Same may apply for ICSI. Thus the above doesn’t seem to be a violation.

  2. BSKRAO says:

    Indian legislature provided special class of persons called Advocates in Advocates Act, 1961 to practice all Indian laws. Therefore, authorised representative clause not required in any Indian taxation statute. Bar Council of India Vs A.K.Balaji [SLP(Civil)No(s)17150-17154/2012] Dt.4.7.2012 (SC) & A.K.Balaji Vs Govt. of India (2012) 35 KLR 290 21.02.2012 (Madras HC) it was clearly held by Hon’ble Supreme Court & Madras High Court that Advocates alone are entitled to practice the Profession of Law both in litigious & non-litigious matters, nullifying the effect of Section 33 of Advocates Act. This also confirms to Section 29 of Advocates Act. The constitution bench of Apex Court in National Tax Tribunal case of Madras Bar Association Vs Union of India bearing No.150 of 2006 Dt.25.09.2014, it was ultimately held that Chartered Accountant to represent a party to an appeal before NTT, unconstitutional & unsustainable in law. The verdict of Supreme Court is the declared law of land, binding on all throughout the territory of India under Article 141 of Indian Constitution & contravention liable for action under Article 129 read with Article 142(2) of Indian Constitution. Hence, Advocates alone are entitled to Practice, Plead and Act before the revenue authorities. On date, authorized representative clause under all Indian taxation statute has been subject to review of apex court and hence require deletion. Other than Advocates should appear before tax authorities under CPC/Evidence Act, against summons issued. If such appearance clause still retained in statute book of Indian taxation laws, situation may arise that order of assessing authority passed against the representation of Non-Advocates become in-fructuous, bad in law, null & void. Further, such orders cannot be enforced/appealed and the Department is restrained to invoke action U/s 288(5) of Income-Tax Act on such persons for Professionals Negligence. Power of attorney (Vakalatnama) to practice law can only be given to Advocates. Practice of law is the “Prerogative Power” of Advocates. As appearance clause Section 288(2) of Income-Tax Act, induces Non-Advocates to commit offence punishable U/s 45 of Advocates Act, such clause no longer required in statute book of Income-Tax Act.

  3. CA UTTAM JAIN says:

    B.Com (Hons), L.L.B, FICWA, FCS, FCA, DISA Member Central Council Institute of Chartered Accountants of India

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