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THE CHARTERED ACCOUNTANTS ACT, 1949

Title : THE CHARTERED ACCOUNTANTS ACT, 1949

Year : 1949



Any person who,-

(i) Not being a member of the Institute.-

(a) Represents that he is a member of the Institute; or

(b) Uses the designation Chartered Accountant, or

(ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice, or practices as a chartered accountants,shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months or with fine which may extend to five thousand rupees, or with both.

24A - Omitted

2[***]


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1. Inserted by the Chartered Accountants (Amendment) Act (15 of 1959), Section 21 [1-7-1959].

2. Omitted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to omission, it read as under:-
"124A. Penalty for using name of the Council, awarding degrees of chartered a accountancy, etc.-

(1) Save as otherwise provided in this Act, no person shall--
(i) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it as to deceive or as is likely to deceive the public;

(ii) Award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence similar to that of a member of the Institute; or

(iii) Seek to regulate in any manner whatsoever the profession of chartered accountants.

(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable with fine which may extend on first conviction to one thousand rupees, and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.

(3) Nothing contained in this section shall apply to any University established by law or to any Body affiliated to the Institute."
 
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(1) No company, whether incorporated in India or elsewhere, shall practice as chartered accountants.

1*[Explanation.-For the removal of doubts, it is hereby declared that the "company" shall include any limited liability partnership which has company as its partner for the purposes of this section.]

(2) If any company contravenes the provisions of sub-section (1), then, without prejudice to any other proceedings which may be taken against the company, every director, manager, secretary and any other officer thereof who is knowingly a party to such contravention shall be punishable with fine which may extend on first conviction to one thousand rupees, and on any subsequent conviction to five thousand rupees.
 
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1. Inserted by the Chartered Accountants (Amendment) Act, 2011, dated 08.01.2012 w.e.f. 01.02.2012.

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(1) No person other than a member of the Institute shall sign any document on behalf of a1*[chartered accountant in practice] or a 2*[firm of such chartered accountants] in his or its professional capacity.

3*[(2) Any person who contravenes the provisions of sub-section (1) shall, without prejudice to any other proceedings, which may be taken against him, be punishable on first conviction with a fine not less than five thousand rupees but which may extend to one lakh rupees, and in the event of a second or subsequent conviction with imprisonment for a term which may extend to one year or with fine not less ten thousand rupees but which may extend to two lakh rupees or with both.]

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1. Substituted for the words "chartered accountant" by the Chartered Accountants (Amendment) Act (15 of 1959) Section 22 [1-7-1959].

2. Substituted for the words "firm of chartered accountants", by the Chartered Accountants (Amendment) Act (15 of 1959) Section 22 [1-7-1959].

3. Substituted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006. Prior to substitution, it read as under:-

"(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable with fine which may extend on first conviction to one thousand rupees and on any subsequent conviction with imprisonment which may extend to six months or with fine which may extend to five thousand rupees or with both."

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(1) Where a1*[chartered accountant in practice] or a2*[firm of such chartered accountants] has more than one office in India, each one of such offices shall be in the separate charge of a member of the Institute :

Provided
that the Council may in suitable cases exempt any1*[chartered accountant in practice] or a2*[firm of such chartered accountants] from the operation of this sub-section.

(2) Every1*[chartered accountant in practice] or a2*[firm of such chartered accountants] maintaining more than one office shall send to the Council a list of offices and the persons in charge thereof and shall keep the Council informed of any changes in relation thereto.

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1. Substituted for the words "Chartered Accountant" by the Chartered Accountants (Amendment) Act (15 of 1959) Section 22 [1-7-1959].

2. Substituted for the words "firm of chartered accountants", by the Chartered Accountants (Amendment) Act (15 of 1959) Section 22 [1-7-1959].

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No person shall be prosecuted under this Act except on a complaint made by or under the order of the Council or of the Central Government.

28A -1* Establishment of Quality Review Board

(1) The Central Government shall, by notification, constitute a Quality Review Board consisting of a Chairperson and ten other members.

(2) The Chairperson and members of the Board shall be appointed from amongst the persons of eminence having experience in the field of law, economics, business, finance or accountancy.

(3) Five members of the Board shall be nominated by the Council and other five members shall be nominated by the Central Government.

28B -1* Functions of Board

The Board shall perform the following functions, namely:-

(a) To make recommendations to the Council with regard to the quality of services provided by the members of the Institute;

(b) To review the quality of services provided by the members of the Institute including audit services; and

(c) To guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements.

28C -1* Procedure of Board

The Board shall meet at such time and place and follow in its meetings such procedure as may be specified.

28D -1* Terms and conditions of services of Chairperson and members of Board and its expenditure

(1) The terms and conditions of service of the Chairperson and the members of the Board, and their allowances shall be such as may be specified.

(2) The expenditure of the Board shall be borne by the Council.

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1. Inserted by the Chartered Accountants (Amendment) Act, 2006, dated 22nd March, 2006.
 
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Last updated on August, 2016

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