Page 454 - CA Final PARAM Digital Book.

• Article has indirect interest – Guilty
• Article has no indirect interest – Not Guilty

QNO Second Schedule, Part II,Cl,1 --Stipend Payment & UDIN Old Course-- (N12R, N15R,P17M, N17E, N18M,
766.000 TITANIUM CNO – PE.1660 N21M)
Case1
CA. X is a chartered accountant in practice. He has an articled trainee H. X has informed H that since his
practice and receipt of fees is seasonal, the stipend would not be paid in the months of April to
December, but would be paid from January to March and the shortfall for the earlier 9 months will be
made good in these 3 months along with interest @ 5% p.a.
Answer Part I -- Relevant Standards & Laws
▪ Clause (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949
▪ Regulation 48 of the Chartered Accountant’s Regulations, 1988
Part II -- Requirements of Relevant Standards & Laws
➢ Clause (1) of Part II of the Second Schedule
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional
misconduct if he contravenes any of the provisions of this Act or the regulations made there under
or any guidelines issued by the Council.
Case 1
Part III – Case Discussion
➢ In the given case, CA. X has failed to make the payments of stipend to articled assistant every
month in accordance with Regulation 48.
Part IV – Conclusion
➢ The fact that the articled assistant will be compensated with extra sum in the form of interest on
late payment is not relevant and the plea that cycle of professional receipts from clients is
seasonal is not acceptable. Therefore, CA. X is guilty of professional misconduct under Clause (1) of
Part II of the Second Schedule to the Chartered Accountants Act, 1949 as he has contravened
Regulation 48 by not making the payment every month.

QNO Second Schedule, Part II, Cl,1 UDIN not Generated. Old Course-- (N20E)
766.500 TITANIUM CNO – PE.1660
Mr. Kushal, a practicing Chartered Accountant has signed the GST Audit Reports, Tax Audit Reports u/s
44AB of the Income tax Act, 1961 for the financial year 2019-20 that are filed online using Digital
Signature and without generating UDIN on the ground that there is no field for mentioning UDIN on
digitally signed online reports. Is the contention of Mr. Kushal valid? Give your comments with
reference to the Chartered Accountants Act, 1949 and schedules thereto.

Non Generation of UDIN: Whereas, to curb the malpractice of false/certification/attestation by the
unauthorized persons and to eradicate the practice of bogus certificates and to save various
regulators, banks, stakeholders etc. from being misled, the Council of the Institute decided to
implement an innovative concept to generate Unique Document Identification Number (UDIN)
mandatorily for all kinds of the certificates/GST and tax audit reports and other attest function in
phased manner, for which members of the ICAI were notified through the various announcements
published on the website of ICAI at the relevant times.
In exercise of the powers conferred on it under clause 1 of Part II of the Second Schedule to the
Chartered Accountants Act,1949, the Council of the Institute of Chartered Accountants of India
issued the following guidelines for information of public and necessary compliance by members of the
Institute

A member of the Institute in practice shall generate Unique Document Identification Number (UDIN) for all
kinds of the certification, GST and Tax Audit Reports and other Audit, Assurance and Attestation functions
undertaken/signed by him which are made mandatory from the following dates through announcements
published on the website of the ICAI-
• For all Certificates w.e.f. 1st February,2019.
• For all GST and Tax Audit Reports w.e.f. 1st April, 2019.
• For all other Audit, Assurance and Attestation functions, w.e.f. 1st July, 2019.
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