Page 396 - CA Final PARAM Digital Book.

advertises his classes on various social media platforms. Comment with reference to the Chartered
Accountants Act, 1949, and Schedules thereto.
Answer Regulation 190A of Chartered Accountants Regulations, 1988 provides that a chartered accountant in
practice shall not engage in any business or occupation other than the profession of accountancy except

with the permission granted in accordance with a resolution of the Council.

The Council has passed a resolution under Regulation 190A granting general permission for private
tutorship and part time tutorship under coaching organization of the Institute. Such general permission is
subject to the condition that direct teaching hours devoted to such activities taken together should not
exceed 25 hours a week in order to be able to perform attest functions.

However, Clause 6 of Part I of the First Schedule to the Chartered Accountants Act, 1949 states that
Chartered Accountant in practice shall be deemed to be guilty of professional misconduct, if he solicits
clients or professional work either directly or indirectly by circular, advertisement, personal communication
or interview or by any other means;

Further, an advertisement of online coaching activities through social media platforms amounts to indirect
solicitation as well as solicitation by another means and is, therefore, violative of Clause 6 of Part I of the
First Schedule to Chartered Accountants Act, 1949.

Therefore, although a member in practice can engage in private tutorship subject to Council Guidelines but
he cannot advertise by any means for coaching activities as it amounts to indirect solicitation of clients and
professional work.

In the given case, CA Praful is providing coaching to CA students online and also advertising his classes on
various social media platforms. In view of above, CA. Praful is guilty of professional misconduct under Clause
(6) of Part I of First Schedule to the Chartered Accountants Act 1949 for advertising his classes on various
social media platforms.

First Schedule, Part I,Cl,7 Designation Old Course – (SM17, SM21)
QNO
689.000 TITANIUM CNO – PE.1180 New Course – (SM23)

A practising Chartered Accountant uses a visiting card in which he designates himself, besides as

Chartered Accountant, Cost Accountant.

Answer Part I -- Relevant Laws
▪ Section 7 of the Act read with Clause (7) of Part I of the First Schedule to the Chartered Accountants

Act, 1949

Part II -- Requirements of Relevant Laws
➢ A chartered accountant in practice cannot use any other designation than that of a chartered
accountant. Nevertheless, a member in practice may use any other letters or descriptions indicating
membership of accountancy bodies which have been approved by the Council.

Part III – Case Discussion
➢ In the given case, a practising Chartered Accountant uses a visiting card in which he designates
himself, besides as Chartered Accountant, Cost Accountant.

Part IV – Conclusion
➢ Thus, it is improper for a chartered accountant to state in his documents that he is a “Cost
Accountant”. 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".

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