Page 366 - CA Final PARAM Digital Book.

➢ Section 27 of the Chartered
Accountants Act, 1949 requires
that if a chartered accountant in
practice or a firm of chartered
accountants has more than one
office in India, i.e., a branch, each
of such offices should be in the
separate charge of a member of
the Institute.
Failure on the part of a member
or a firm, to have a member in
charge of its branch office and a
separate member in case of the
branches, if more than one,
would constitute professional
misconduct.

However, exemption from the above has been given to members practising in the hilly areas subject
to the certain conditions.

It is necessary to mention that the Chartered Accountant in charge of the branch of another firm
should be associated with him or with the firm either as a partner or as a paid assistant. If he is a
paid assistant, he must be in whole time employment with him.

The above rule applies in case additional office is situated at a place beyond 50 Kms. from the
municipal limits in which the office is situated.
The exemption may be granted under proviso to section 27(1) of the Chartered Accountants Act,
1949 to a member or a firm of Chartered Accountants in practice to have a second office without
such second office being under the separate charge of a member of the Institute provided.
• the second office is located in the same premises, in which the first office is located or
• the second office is located in the same city, in which the first office is located or
• the second office is located within a distance of 50 km. from the municipal limits of a city,
in which the first office is located. A member having two offices of the type referred to
above shall have to declare, which of the two offices is his main office which would
constitute his professional address.

Sec 27 --Sec 27 (Separate branch in charge) / ITO Old Course –(N12E, N15E, PM17, M17M, M19E,
QNO TITANIUM CNO – PE.880 SM17, SM21)
658.000
New Course – (SM23)

Mr. G, a Chartered Accountant in practice as a sole proprietor has an office in Mumbai near Church Gate.
Due to increase in professional work, he opens another office in a suburb of Mumbai which is
approximately 80 kilometers away from his existing office. For running the new office, he employs
three retired Income-tax Officers.
OR
K, Chartered Accountant in practice as a sole proprietor at Chennai has an office in the suburbs of
Chennai. Due to increase in the income tax assessment work, he opens another office near the income
tax office. For running the new office, he has employed a retired income Tax Commissioner.

Answer Part I -- Relevant Standards & Laws
▪ Section 27 of Chapter VII of the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Standards & Laws
➢ In terms of section 27 of the Chartered Accountants Act, 1949, if a chartered accountant in practice
has more than one office in India, each one of these offices should be in the separate charge of a
member of the Institute.
There is however an exemption for the above if

www.auditguru.in PARAM 19.8 | P a g e