Revision in stipend rates payable to CA articles

CA Siddhartha Bhardwaj , Last updated: 27 January 2015  
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Regulation 48 of the Chartered Accountants Regulations, 1988 provides for payment of minimum monthly stipend to articled assistant.

The said regulation has been amended by ICAI vide Notification No. 1-CA(7)/167/2014 dated 23rd January, 2015.

The minimum monthly stipend has been increased. The new rates are twice the existing rates. A comparison of the old & new rates is provided below:

Table

Classification of the normal place of service of the articled assistant

During the first year of training

During the second year of training

During the remaining period of training

(1)

(2)

(3)

(4)

Old

New

Old

New

Old

New

(i) Cities / towns having a population of twenty lakhs and above.

Rs. 1000/-

Rs. 2000/-

Rs. 1250/-

Rs. 2500/-

Rs. 1500/-

Rs. 3000/-

(ii) Cities / towns having a population of four lakhs and above but less than twenty lakhs

Rs. 750/-

Rs. 1500/-

Rs. 1000/-

Rs. 2000/-

Rs. 1250/-

Rs. 2500/-

(iii) Cities / towns having a population less than four lakhs.

Rs. 500/-

Rs. 1000/-

Rs. 750/-

Rs. 1500/-

Rs. 1000/-

Rs. 2000/-

Some questions that may arise in the minds of students / members are addressed below:

Question 1: If the article takes leaves in excess of the specified limit, will he be paid stipend for such excess leave?

Answer: Explanation 1 to Regulation 48 provides that no stipend shall be payable for any excess leave taken. Accordingly if an article avails leave in excess of the specified limit, he shall NOT be paid stipend for the excess leave.

Question 2: If an article transfers his articleship from one CA to another CA then will the period served under previous CA be counted for determining the rate of stipend?

Answer: Explanation 2 to Regulation 48 provides that “For the purpose of determining the rates at which stipend is payable under this regulation, the period of Articled training of the student under any previous principal or principals shall also be taken into account.”

Question 3: The rates of stipend are based on the population of a city/town. How will the population be determined?

Answer: Explanation 3 to Regulation 48 provides that “For the purpose of this regulation, the figures of population shall be taken as per the last published Census Report of India.”

Source: www.icai.org

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CA Siddhartha Bhardwaj
(Proprietor at Siddhartha Bhardwaj & Associates, Chartered Accountants)
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