Can a ca holding cop enter into a partnership with non cas

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Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2013 Can a CA holding a COP enter into a partnership with non CAs for any other business/ advisory services and still continue to practice as a CA? If yes please provide details of section or whether specific approval is required from the ICAI. The authority that can grant such approval & process of obtaining the same.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 November 2013 no. not allowed except for acquiring interest in family business:

"A member of the Institute can acquire interest in family business in any of the following manner:

(a) as a proprietor of a proprietary firm.

(b) as a partner of partnership firm.

(c) in the name and style of Hindu Undivided Family as its karta or a member.

It would be necessary for the member to provide evidence that interest in the family business concern devolved
on him as a result of inheritance/succession/partition of the family business. It is also necessary for the member to show that he was not actively
engaged in carrying on the said business and that the family business concern in question was not created by him. The member
is required to submit an application and a declaration in the prescribed format."

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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12 November 2013 Clause 4 of Part I of Schedule I of CA Act,1949 prohibits it.

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Ajay Mishra

Ajay Mishra (Expert)
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12 November 2013
A Chartered Accountant in practice CANNOT:
• Use any designation other than Chartered Accountant on professional documents, visiting cards, letterheads or signboard. The Council has decided that a member of the institute shall not be permitted to use initials "CPA" (standing for Certified Public Accountant) on his visiting card.
• Charge fees on a percentage of profits or which are contingent upon the findings, or results of such work provided that.
a. In the case of a receiver or a liquidator, the fees may be based on a percentage of the realisation or disbursement of the assets.
b. In the case of an auditor of a co-operative society the fees may be based on a percentage of the paid-up capital or the working capital etc.
c. In the case of a valuer for the purposes of direct taxes and duties, the fees may be based on a percentage of the value of the property valued.
• Engage in any business other than the profession of chartered accountants unless permitted by the Council.
• Accept position as auditor previously held by another chartered accountant without first communicating with him in writing.
• Accept any other work/assignment/service on a remuneration, which exceeds the fees payable for statutory audit of the same undertaking. (Applicable only in respect of statutory audits of public sector undertaking/Govt. Companies/Listed companies/other public companies with turnover of Rs. 50 crores or more in a year for appointments after 1st April, 2002 — Ref: Notification No. 1-CA(7)/60/2002 published in CA Journal-March, ’02 issue).
• Accept or carry out any audit work involving receipt of audit fees (excluding reimbursement of expenses, if any) for such work of an amount less than what is specified hereunder:— (notification No.1-CA(7)/93/2006 published in CA journal on page 652 of October, ’06 issue):

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