Section 2 – The Cost and Works Accountants Act, 1959

(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;]

(b) “cost accountant” means a person who is a member of the Institute;

(c) “Council” means the Council of the Institute;

(d) “dissolved company” means the Institute of Cost and Works Accountants registered under the Companies Act, 1956 (1 of 1956);

(e) “fellow” means a fellow of the Institute;

²[(ea) “firm” shall here the meaning assigned to it in section 4 of the Indian Partnership Act, 1932, and includes—

(i) the limited liability partnership as defined in clause (n) of sub-section (l) of section 2 of the Limited Liability Partnership Act, 2008; or

(ii) the sole proprietorship, registered with the Institute;]

(f) “Institute” means the ³[Institute of Cost Accountants of India] constituted under this Act;

⁴[(fa) “notification” means a notification published in the Official Gazette;]

⁵[(fb) “partner” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008, as the case may be;]

⁶[(fc) “partnership” means—

(A) a partnership as defined in section 4 of the Indian Partnership Act, 1932; or

(B) a limited liability partnership which has no company as its Partner;]

(h) “President” means the President of the Council;

(i) “Register” means the Register of members maintained under this Act;

⁷[(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 subsection (2);]

(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 ¹¹[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 ⁹[cost accountancy;] or

(ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or ¹⁰[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.

Amendment

1. Inserted, by the Cost and Works Accountants (Amendment) Act, 2006 w.e.f. 8-8-2006.

2. Inserted, by the Cost and Works Accountants (Amendment) Act, 2011 w.e.f. 1-2-2012.

3. Substituted for “Institute of Cost and Works Accountants of India”, by the Cost and Works Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012.

4. Inserted, by the Cost and Works Accountants (Amendment) Act, 2006 w.e.f. 8-8-2006.

5. Inserted, by the Cost and Works Accountants (Amendment) Act, 2011 w.e.f. 1-2-2012.

6. Inserted, by the Cost and Works Accountants (Amendment) Act, 2011 w.e.f. 1-2-2012.

7. Inserted, by the Cost and Works Accountants (Amendment) Act, 2006 w.e.f. 8-8-2006.

8. Inserted, by the Cost and Works Accountants (Amendment) Act, 2011 w.e.f. 1-2-2012.

9. Substituted for “Cost and Works Accountancy”, by the Cost and Works Accountants (Amendment) Act, 2011, w.e.f 1-2-2012.

10. Substituted for “Certification of Cost Accounting and related Statements or holds himself out to the public as a cost accountant in practice;“ by the Cost and Works Accountants (Amendment) Act, 2011, w.e.f. 1-2-2012.

11. Inserted, by the Cost and Works Accountants (Amendment) Act, 2011 w.e.f. 1-2-2012.