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Stipend urgent!!!

madhuri verma (article) (30 Points)

12 March 2014

hii everyone... i hav 2 queries..

1st: i hav joined a small firm in mumbai... but i dont have a bank account and its difficult for me to get one cos of residence proof (i m not from mumbai) .. so can i get my stipend transfered to my fathers (rajasthans branch) or friends account (mumbai branch)

2nd and most urgent : my frnd who is about to complete her articleship in 2 days had a similar problem.. so she got her stipend in cash.. now since its icai's requirement to pay it through account payee cheque/ bank account.. can she mention her fathers or frnds account no. on form 108. and route d money accordingly... (basically is it necessary that account shud be in her name)

pls reply ASAP

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10 Replies

Back in the Game (a) (1273 Points)
Replied 12 March 2014

Logically the Bank account should be in your name.

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madhuri verma (article) (30 Points)
Replied 12 March 2014

but wat can she do now?? is it a severe miscompliance if she writes a frnds account no.?

Back in the Game (a) (1273 Points)
Replied 12 March 2014

Its not the Question of Serious miscomplliance or not.The idea behind having transaction through bank account for payment of stipend is to rule out the Contention or allegation that a article clerk would place on the principal in case of Conflict between the two.

I logically think principal may disagree to this because ,his Interest may be violated incase there is a conflict between the two in future.

if principal agrees to this then there is absolutely no problem.

but think if someone is writing a check on your credit but the name is different.Will the principal agree?

So i advise you to take some time either go back to the home town to open a bank account or make some way out in current place where you are staying to opne one,and request the principal to defer the payment stipend until then.

Now your Friends case ,tell her to send the articleship completion form asap on her completion cos postponding will need bank statements to be presented.Considering this ,She can state her fathers account number.But Point to be noted is Your friend has allready violated Regulations by taking stipend in cash.There is no doubt Risk in doing all this but it is takeable.

Paresh Dholu (Chartered Accountants) (393 Points)
Replied 12 March 2014

You can open your Saving Bank Account at your home town.... ...

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 12 March 2014

1. Your stipend needs to be credited only to your account. If you're staying in Mumbai; but do not have a residence proof, you can still get one. May be a certificate from a Gazzetted Office. Just enquire about it with the bank officials.

2. In your friend's case, since she cannot do anything now, she may mention her father's or friend's bank account details. ICAI do not insist you to provide the proof for the same, unless you submit the form late. So there won't be any problem if she submits her form within 30 days from the date of completion of her articleship.

Good luck!

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Sachin Rajput (account exe) (593 Points)
Replied 12 March 2014

I can understand your problem . in India its difficult to get an adress proof .. but you u can do one thing open a saving account at you home town .. and deposit your cheque in mumbai at any branch of same bank which you would open in your home town..

madhuri verma (article) (30 Points)
Replied 12 March 2014

thanq so muj eve1.. :)

Sanket Oswal (Student CA Final ) (59 Points)
Replied 13 March 2014

Its okay even if the account is transfered to your friends fathers' accoount.

I can understand the difficulties you are facing in opening an account in mumbai.

Why don't you open an account in your hometown?

ABHISHEK ADITYA (CA Final 1st group cleared) (213 Points)
Replied 13 March 2014

1.You can open bank account in your home town.

2. No other option availabe for you.

madhuri verma (article) (30 Points)
Replied 13 March 2014

ok.. will do so...

and one more thing... my frnd was registerd under one sole proprietor but is working with other sole proprietor who is a frend of one under whome she is registered...(as per mutual understanding between both CAs due to no. of articles allowed under each) can dis create a problem.. if it comes under scrutiny?