Page 378 - CA Final PARAM Digital Book.

Indian chartered accountant practising outside India becomes a partner with aforesaid accountants and
enters into partnership in that country with a member of the Institute of that country.

Part III – Case Discussion
➢ An Indian Chartered Accountant is practising outside India and becomes a partner with the aforesaid
accountants (Chartered accountant from ICAEW / CPA in New York)

Part IV – Conclusion
➢ There would be professional misconduct within the provisions of the Institute of Chartered
Accountants Act, 1949 as the applicability of such provisions extend to members practicing outside
India.
Part (ii)
Part I -- Relevant Laws
▪ Clause (7) of Part I of First Schedule to the Chartered Accountants Act 1949
▪ Section 7 of Chartered Accountants Act 1949.

Part II -- Requirements of Relevant Laws
➢ Section 7 of the Chartered Accountants Act, 1949 read with Clause (7) of Part I of the First Schedule
to the said Act prohibits advertising of professional attainments or services of a member. It also
restrains a member from using any designation or expression other than that of a chartered
accountant in documents through which the professional attainments of the member would come
to the notice of the public.

Under the clause, use of any designation or expression other than chartered accountant for a
chartered accountant in practice, on professional documents, visiting cards, etc. amounts to a
misconduct unless it be a degree of a university or a title indicating membership of any other
professional body recognised by the Central Government or the Council.
(a) Tax Consultant:
Part III – Case Discussion
➢ A practising Chartered Accountant uses a visiting card in which he designates himself, besides as
Chartered Accountant, as Tax Consultant

Part IV – Conclusion
➢ Thus, it is improper to use designation "Tax Consultant" since neither it is a degree of a University
established by law in India or recognised by the Central Government nor it is a recognised
professional membership by the Central Government or the Council. This would constitute
misconduct under section 7 of the Act read with Clause (7) of Part I of the First Schedule to the
Chartered Accountants Act, 1949.

(b) Cost Accountant:
Part III – Case Discussion
➢ A practising Chartered Accountant uses a visiting card in which he designates himself, besides as
Chartered Accountant, as Tax Consultant

Part IV – Conclusion
➢ Thus, it is improper for a chartered accountant to state in his documents that he is a “Cost
Accountant”. However as per the Chartered Accountants Act, 1949, the Council has resolved that
the members are permitted to use letters indicating membership of the Institute of Cost and Works
Accountants but not the designation "Cost Accountant”. This would also constitute misconduct
under section 7 of the Act read with Clause (7) of Part I of the First Schedule to the Chartered
Accountants Act, 1949.

QNO First Schedule, Part I, Cl 4 Partnership (Advocate) Old Course – (N05E, M09R, PM17, SM17, N18R,
665.000 TITANIUM CNO – PE.1100 N18M M19R)
Mr. P, a Chartered Accountant in practice entered into a partnership with Mr. L, an advocate for sharing
of fees for work sent by one to the other. However, due to some disputes, the partnership was dissolved
after 1 month without any fees having been received.

Answer Part I -- Relevant Laws
▪ Clause (4) of Part I of the First Schedule to the Chartered Accountants Act, 1949

▪ Regulation 53B of the Chartered Accountants Regulations, 1988
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