Certificate of practice
(1) No member of the Institute shall be entitled to practise 1[whether in India or elsewhere] unless he has obtained from the Council a certificate of practice:
2[Provided that nothing contained in this sub-section shall apply to any person who, immediately before the commencement of this Act, has been in practice as a registered accountant or a holder of a restricted certificate until one month has elapsed from the date of the first meeting of the Council.]
3[(2) Every such member shall pay such annual fee for his certificate as may be determined, by notification4, by the Council, which shall not exceed rupees three thousand, and such fee shall be payable on or before the 1st day of April in each year:
Provided that the Council may with the prior approval of the Central Government, determine the fee exceeding rupees three thousand, which shall not in any case exceed rupees six thousand.]
5[(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under such circumstances as may be prescribed.]
Amendment
1 Inserted by the Chartered Accountants (Amendment) Act, 1959.
2 Inserted by Section 2 of the Chartered Accountants (Amendment) Ordinance, 1949, Ordinance No. XV of 1949 – Gazette of India Extraordinary dated 1st July, 1949.
3 Substituted, for the following, by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8th August, 2006 :-
A[“(2) Every such member shall pay such annual fee for his certificate as may be prescribed, and such fee shall be payable on or before the 1st day of April in each year.”]
AThis sub-section (2) was earlier substituted, for the following, by the Chartered Accountants (Amendment) Act, 1959 :-
“(2) Every such member shall pay such annual fee, differing in amount according as he is an associate or a fellow of the Institute, for his certificate as may be prescribed, and such fee shall be due on the 1st day of April in each year.”
4 For the notification, please see Appendix No. (10).
5 Inserted by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8th August, 2006.
Unlocking the Gateway to Practice: Understanding Section 6 of the Chartered Accountants Act, 1949
Unlocking the Gateway to Practice: Understanding Section 6 of the Chartered Accountants Act, 1949
Navigating the Regulatory Landscape for Chartered Accountants in India
In the world of Indian Chartered Accountancy, Section 6 of the Chartered Accountants Act, 1949 stands as a pivotal pillar, ensuring ethical practice and professional excellence. It acts as a gatekeeper, ensuring that only qualified and authorized individuals engage in professional accounting services within India’s borders and beyond.
Key Provisions of Section 6:
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Certificate of Practice: The Indispensable Credential:
- No chartered accountant (CA) can enter professional practice without first obtaining a Certificate of Practice from the Institute of Chartered Accountants of India (ICAI).
- This requirement extends to both domestic and international practice, ensuring consistency and quality across borders.
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Exemption for Legacy Practitioners:
- Individuals who were already practicing as registered accountants or holders of restricted certificates before the Act’s commencement were granted a one-month grace period to obtain the Certificate of Practice.
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Annual Renewal and Fees:
- To maintain their Certificate of Practice, CAs must pay an annual fee, determined and notified by the ICAI Council.
- The fee cannot exceed ₹6,000, and payment is due on or before April 1st of each year.
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Cancellation Under Specific Circumstances:
- The ICAI Council has the authority to cancel a Certificate of Practice under certain prescribed conditions, upholding professional standards and accountability.
Illustrative Examples in the Indian Context:
- Riya, a newly qualified CA, aspires to start her own practice in Mumbai. Before accepting clients or offering services, she must first apply for and obtain her Certificate of Practice from the ICAI.
- Aditya, a CA working in a multinational firm in Bangalore, is offered an overseas assignment in Dubai. To practice legally in Dubai, he’ll need to ensure his Certificate of Practice is valid for international practice.
- A CA firm in Kolkata is found to have engaged in unethical practices. The ICAI Council, upon investigation, may initiate the process of canceling the Certificates of Practice of the CAs involved.
By comprehending and adhering to Section 6, CAs in India can confidently navigate the regulatory landscape, uphold professional integrity, and contribute meaningfully to the nation’s financial and economic growth.
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