Institute of Chartered Accountants of India has issued a notification no. Na.1-CA(7)/116/2008 dated 25-9-2008incorporating various amendment to the Chartered Accountants Regulations, 1988.

There are 16 amendments to the regulations.  One of the major amendments is provisions relating to multidisciplinary partnership firm.

These amendments are summarized as under:

Earlier vide Chartered Accountants (Amendment) Act, 2006 [w.e.f. 17.11.2006] the provision of First Schedule of the Chartered Accountants Act, 1949 amended and accordingly central government has allowed multidisciplinary partnership firms.

It took almost two years to prescribe other qualifications (professionals occupying such qualifications) which are eligible for valid partnership or to share profits / remunerations with a practicing chartered accountant.

The qualifications to share profits / remunerations / commission / brokerage etc. [ Regulation 53A]

(i) Company Secretary within the meaning of the Company Secretaries Act, 1980;

(ii) Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959;

(iii) Actuary within the meaning of the Actuaries Act, 2006;

(iv) Bachelor in Engineering, from a University established by law or an Institution recognised by law;

(v) Bachelor in Technology from a University established by law or an Institution recognised by law;

(vi) Bachelor in Architecture from a University established by law or an Institution recognised by law;

(vii) Bachelor in Law from a University established by law or an Institution recognised by law;

(viii) Master in Business Administration from Universities established by law or technical institutions recognised by All india Council for Technical Education.

 

Prescribed qualifications of a eligible partner who is not a member of ICAI [ Regulation 53B]

(a) Company Secretary, member, The Institute of Company Secretaries of India, established under the Company Secretaries Act, 1980;

(b) Cost Accountant, member, The Institute of Cost and Works Accountants of India established under the Cost and Works Accountants Act, 1959;

(c) Advocate, member, Bar Council of India established under the Advocates Act, 1961;

(d) Engineer, member, The Institution of Engineers, or Engineering from a University established by law or an Institution recognized by law.

(e) Architect, member, The Indian Institute of Architects established under the Architects Act, 1972;

(f) Actuary, member, The Institute of Actuaries of India, established under the Actuaries Act, 2006.

(g) Professional bodies or Institutions outside India whose qualifications relating to accountancy are recognised by the Council.

 

See: notification no. Na.1-CA(7)/116/2008 dated 25-9-2008

Multidisciplinary partnership: Chartered accountants may share profits with specified recognised professionals under amended regulations. Amendments to the Chartered Accountants Regulations allow practising chartered accountants to form a Multidisciplinary Partnership Firm and to share profits, remunerations, commissions or brokerage with specified professionals. The rules prescribe eligible professional categories-including company secretaries, cost accountants, actuaries, advocates, engineers, architects and MBA holders-and require recognition by their respective statutory institutes or universities as the qualifying criterion for partnership or profit sharing.