Receiving commission
This query is : Resolved
15 June 2017
Dear sir,
Can a CA in practice receive commission from a software developer on advising client to buy a software from that developer?
is there any prohibition for this?
16 June 2017
Hi Irfan!
Not a good practice. Moreover, it is given in Clause 3 of Part 1 of Schedule 1 that a chartered accountant must not accept share of profit by another professional. Although the clause uses the term professional, on a wide reading and considering acceptable social norms, it is unethical for a CA to claim commission from a third party on commission basis and affects independence to a large extent. You may also want to refer the council's general and specific permissions on what a CA can and can't do.
Not a good practice. Moreover, it is given in Clause 3 of Part 1 of Schedule 1 that a chartered accountant must not accept share of profit by another professional. Although the clause uses the term professional, on a wide reading and considering acceptable social norms, it is unethical for a CA to claim commission from a third party on commission basis and affects independence to a large extent. You may also want to refer the council's general and specific permissions on what a CA can and can't do.
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