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Receiving commission

Irfan Khan (CA FINAL) (508 Points)

15 June 2017

Dear All,

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?

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2 Replies

(Guest)

No, a CA cannot receive such amount. Yes, there is a prohibition from receiving the amounts from a non-member.

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Karan Batra (Creator: TheProTalks) (2325 Points)
Replied 21 June 2017

As per clause 3, Part I of the First schedule of the chartered accountants act,1949 “A CA in practice shall be guilty of misconduct if accepts or agrees to accept any part of the professional work of a person who is not a member of the Institute”

However, such restriction does not apply in respect of following persons:

member of any other professional bodies (ICSI, ICWAI, Bar Council of India, Indian Institute of Architects, Institute of Actuaries of India), or
with such other persons having prescribed qualifications (CS, CWA, Actuary, B.E., Bachelor in Technology, Bachelor in Architecture, Bachelor in Law; MBA).

In your case if the software developer is having the prescribed qualification from above bodies then CA can receive commission from him, however you need to see that the prescribed qualification is from a recognized affiliation also.

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