Mr.A has his own practicing firm (proprietor). Now he starts a consultancy firm (proprietor) in the name of his wife. In the brochure of that consultancy firm. He advertises for Statutory Audits and all other Audits and other CA related works. The address of the firm is same of the Mr.A CA firm. He is showing rent received from the Consultancy Firm.
Will this be covered under advertisement or soliciting of work by a practicing CA?
Clause (6) of Part-I of the First Schedule to the Act prohibits a practicing Chartered Accountant from soliciting clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means. However, there are following exceptions to it:- (i) A member can respond to tenders or enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence. (ii) A member may advertise changes in partnerships or dissolution of a firm, or of any change in the address of practice and telephone numbers, the advertisement being limited to a bare statement of facts and consideration given to the appropriateness of the area of distribution of newspaper or magazine and number of insertions. (iii) A member is permitted to issue a classified advertisement in the Journal/Newspaper of the Institute intended to give information for sharing professional work on assignment basis or for seeking professional work on partnership basis or salaried employment in the field of accounting profession provided it only contains the accountant’s name, address, telephone, fax number and e-mail address
CAclubindia
