Appendix No-3 – The Chartered Accountants Act, 1949

No. 63(1)-Law(C.A.)/49.– In pursuance of clause (iii) of sub-section (1) of Section 4 of the Chartered Accountants Act 1949 (38 of 1949) the Central Government is pleased to specify the following conditions which a person referred to in the said Clause shall fulfil in order to be entitled to have his name entered in the Register of Members of the Institute of Chartered Accountants of India:-

(1) If he has served as an Articled ¹[clerk] under a Registered Accountant entitled or permitted to train Articled ²[clerks] under the Auditor’s Certificates Rules, 1932, or under a Member of the Institute of Chartered Accountants of India entitled to train Articled ³[clerks] under the Chartered Accountants Regulations, 1949⁴ or partly under such Registered Accountant and partly under such Member, for a period of ⁵[three years];

Explanation – Any period of apprenticeship served under the Regulations for the award of the Government Diploma in Accountancy and duly registered with Accountancy Diploma Board, Bombay, shall be reckoned as service as an Articled ⁶[clerk] under a Registered Accountant; or

(2) If he has served as an Audit ⁷[clerk] in the office of any Registered Accountant, prior to the coming in force of the Chartered Accountants Act, 1949, or under a practising Member of the Institute of Chartered Accountants, or partly under such Registered Accountant and partly under such practising Member of the Institute of Chartered Accountants, for a period of six years; or

(3) If he as an officer, not below the rank of an Income-tax Officer, in the Income-tax Department of the Government of India, having –

(a) a minimum service of six years in such capacity, and

(b) reasonable experience in assessment of companies or experience of a similar nature; or

(4) If he has practised as an Income-tax consultant for a minimum period of ten years; or

(5) If he has practised as an auditor, having –

(a) a minimum practice of ten years, and

(b) at least 15 units under his audit at the time of his application for enrolment;

Explanation – In this clause, a “unit ”means a company registered under the Indian Companies Act, 1913 or a Cooperative Society registered under the Co-operative Societies Act, 1912, or under any corresponding Provincial Law, or a private firm;

(6) If he has served for a minimum period of ten years as a chief accountant, accountant, or internal auditor or in any similar other post, by whatever name designated, in a commercial firm (including a limited liability company) which has a minimum paid-up capital of Rs. 2 lakhs and/or a working capital of Rs. 6 lakhs, or in any similar post which would give equivalent experience under Government or a local authority.

Explanation – (1) For the purpose of counting the service referred to in clause (2) one year’s service as Articled ⁸[clerk] under clause (1) shall be reckoned as two years of service as an Audit ⁹[clerk], fractions of a year being ignored.

(2) For the purpose of computing service or practice referred to in clauses (3) to (6), every year of service as Articled ¹⁰[clerk] under clause (1) shall be reckoned as two years of service or practice, as the case may be, and every year of service under clause (2) shall be reckoned as one year of service or practice, as the case may be, fractions of a year being ignored.

S. Ranganathan.

Joint Secy.

Amendment

^{1,2,3,6,7,8,9,10} Now known as “Articled Assistant(s) ”pursuant to Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 8^th August, 2006

⁴ Now, the Chartered Accountants Regulations, 1988

⁵ Now, three and half years, pursuant to Notification No. 1- CA(7)/92/2006 published in the Gazette of India dated 13^th September, 2006 and came into force w.e.f. 13^th September, 2006.