COST AND WORKS ACCOUNTANTS ACT, 1959
(1) This Act may be called the Cost and Works Accountants Act, 1959.
(2) It extends to the whole of India1[****]
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
_____________________________
1. Words "except the State of Jammu and Kashmir" omitted by the Central Laws (Extension of Jammu and Kashmir) Act, 1968 (25of 1968), S. 2 and Sch. (15-8-1968).
(1) In this Act, unless the context otherwise requires,--
(a) "associate" means an associate member of the Institute;
1[(aa) "Authority" means the Appellate Authority referred to in section 22A;
(aaa) "Board" means the Quality Review Board constituted under section 29A;]
(b) "cost accountant" means a person who is a member of the Institute;
(c) "Council" means the Council of the Institute;
(d) "dissolved company" means the Institute of Cost and Works Accountants registered under the Companies Act, 1956;
(e) "fellow" means a fellow of the Institute;
(f) "Institute" means th
(1) All persons whose names are entered in the Register at the commencement of this Act and all persons who may hereafter have their names entered in the Register under the provisions of this Act, so long as they continue to have their names borne on the said Register, are hereby constituted a body corporate by the name of the Institute of Cost and Works Accountants of India, and all such persons shall be known as members of the Institute.
(2) The Institute shall have perpetual succession and a common seal, and shall have bower to acquire, hold and dispose of property, both moveable and immovable, and shall by its name sue or be sued.
(1) Any of the following persons shall be entitled to have his name entered in the Register, namely:--
(i) any person who was an associate or a fellow of the dissolved company (other than an honorary associate or honorary fellow thereof) immediately before the commencement of this Act, except any such person who is not a permanent resident of India and is not at such commencement practising as a cost accountant in India;
(ii) any person who has passed such examination and completed such training as may be prescribed for members of the Institute;
(iii) any person who, at the commencement of this Act, is engaged in the practice of cost accountancy in India and who fulfills such conditions as the Central Government or the Council may specify in this behalf;
(1) The members of the Institute shall be divided into two classes designated respectively as associates and fellows.
(2) Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the Register, be deemed to have become an associate member of the Institute and so long as his "name remains so entered, shall be entitled to use the letters AICWA after his name to indicate that he is an associate member of the Institute of Cost and Works Accountants.
(3) Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the Register under clause (i) of sub-section (1) of Section 4, shall be entered in the Register as a fellow of the Institute.
1[(4) A member, being an associate who has been in continuous prac
(1) No member of the Institute shall be entitled to practise whether in India or elsewhere, unless he has obtained from the Council a certificate of practice.
1[(2) Every such member shall make an application in such form, and pay such annual fee, for his certificate as may be determined, by notification, by the Council, which shall not exceed rupees three thousand and such fee shall be payable on or before the 1st day of April in each year:
Provided that the Council may with the prior approval of the Central Government, determine the fee exceeding rupees three thousand, which shall not in any case exceed rupees six thousand:
Provided further that if a member of the Institute, who was in practice immediately before the commencement of this Act, has made within one month of such commencement an
Every member of the Institute in practice shall, and any other member may, use the designation of a cost accountant and no member using such designation shall use any other description, whether in addition thereto or in substitution therefor:
Provided that nothing in this section shall be deemed to prohibit any such member from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute of Accountancy, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the Institute and in practice, from being known by its firm name as cost accountants.
Notwithstanding anything contained in Section 4, a person shall not be entitled to have his name entered in, or borne on, the Register, if he --
(i) has not attained the age of twenty-one years at the time of his application for the entry of his name in the Register; or
(ii) is of unsound mind and stands so adjudged by a competent Court; or
(iii) is an undischarged insolvent; or
(iv) being a discharged insolvent, has not obtained from the Court a certificate stating that his insolvency was caused by misfortune without any misconduct on his part; or
(v) has been convicted by a competent Court whether within or without India, of an offence involving moral turpitude and punishable with imprisonment or of an
(1) There shall be a Council of the Institute for the management of the affairs of the Institute and for discharging the functions assigned to it by or under this Act.
1[(2) The Council shall be composed of the following persons, namely:--
(a) not more than fifteen persons elected by the members of the Institute, from amongst the fellows of the Institute chosen in such manner and from such regional constituencies as may be specified:
Provided that a fellow of the Institute, who has been found guilty of any professional or other misconduct, and whose name is removed from the Register or has been awarded penalty of fine, shall not be eligible to contest the election,--
(i) in case of misconduct falling under the First Schedule of this Act, for a perio
1[Section 10-Re-election or re-nomination to Council
A member of the Council, elected or nominated under sub-section (2) of section 9, shall be eligible for re-election or as the case may be, re-nomination:
Provided that no member shall hold the office for more than two consecutive terms:
Provided further that a member of the Council, who is or has been elected as President under sub-section (1) of section 12, shall not be eligible for election or nomination as a member of the Council.]
_____________________________
1.Substituted by the Cost and Works Accountants (Amendment) Act, 2006. Prior to substitution, it read as under:
"10.Mode of election to Council.--<
1[Section 10A - Settlement of disputes regarding election
In case of any dispute regarding any election under clause (a) of subsection (2) of section 9, the aggrieved person may make an application within thirty days from the date of declaration of the result of election to the Secretary of the Institute, who shall forward the same to the Central Government].
________________________
1.Inserted by the Cost and Works Accountants (Amendment) Act, 2006.
1[Section 10B - Establishment to Tribunal
(1) On receipt of any application under section 10A, the Central Government shall, by notification, establish a Tribunal consisting of a Presiding Officer and two other Members to decide such dispute and the decision of such Tribunal shall be final.
(2) A person shall not be qualified for appointment,--
(a) as a Presiding Officer of the Tribunal unless he has been a member of the Indian Legal Service and has held a post in Grade I of the service for at least three years;
(b) as a Member unless he has been a member of the Council for at least one full term, and who is not a sitting member of the Council or who has not been a candidate in the election under dispute; or
&n
If the members of the Institute fail to elect any member under clause (a) of sub-section (2) of Section 9 from any of the regional constituencies that may be specified under that clause, the Central Government may nominate any duly qualified person from such constituency to fill the vacancy, and any person so nominated shall be deemed to be a duly elected member of the Council.
(1) The Council at its first meeting shall elect two of its members to be respectively the President and the Vice-President thereof, and so often as the office of the President or the Vice-President becomes vacant, the Council shall choose a person to be the President or the Vice-President, as the case may be :
Provided that on the first constitution of the Council a member of the Council nominated in this behalf by the Central Government shall discharge the functions of the President, until such time as a President is elected under the provisions of this sub-section.
(2) The President shall be the1[Head] of the Council.
(3) The President or the Vice-President shall hold office for a period of one year from the date on which he is chosen but so as not to extend beyond his term of office as a m
(1) Any member of the Council may at any time resign his membership by writing under his hand, addressed to the President, and the seat of such member shall become vacant when such resignation is notified in the Official Gazette.
(2) A member of the Council shall be deemed to have vacated his seat if he is declared by the Council to have been absent without sufficient excuse from three consecutive meetings of the Council1[or he has been found guilty of any professional or other misconduct and awarded penalty of fine], or if his name is, for any cause, removed from the Register under the provisions of Section 20.
(3) A casual vacancy in the Council shall be filled by fresh election from the constituency concerned or by nomination by the Central Government, as the case may be, and the person elected or nominated to fill the vacancy shall h
(1) The duration of any Council constituted under this Act shall be 1[four years] from the date of its first meeting.
(2) Notwithstanding the expiration of the duration of a Council (hereinafter referred to as 'the former Council'), the former Council shall continue to exercise its functions under this Act until a new Council is constituted in accordance with the provisions of this Act, and on such constitution, the former Council shall stand dissolved.
______________________
1.Substituted by the Cost and Works Accountants (Amendment) Act, 2006 for the words "three years".
1 [Section 15 - Functions of the Council
(1) The Institute shall function under the overall control, guidance and supervision of the Council and the duty of carrying out the provisions of this Act shall be vested in the Council.
(2) In particular, and without prejudice to the generality of the foregoing powers, the duties of the Council shall include --
(a) to approve academic courses and their contents;
(b) the prescribing of fees for the examination of candidates for enrolment;
(c) the prescribing of qualifications for entry in the Register;
(d) the recognition of foreign qualifications and training for the purposes of enrolment;
&
1[ Section 15A - Functions of Institute
The functions of the Institute shall include--
(a) the examination of candidates for enrolment;
(b) the regulation of training of students;
(c) the maintenance and publication of a Register of persons qualified to practice as cost accountants;
(d) collection of fees from members, examinees and other persons;
(e) subject to the orders of the appropriate authorities under this Act, the removal of names from the Register and the restoration to the Register of names which have been removed;
(f) the maintenance of a library and publication of books and periodicals relating to accoun
1[ Section 15B - Imparting education by Universities and other bodies
(1) Subject to the provisions of this Act, any University established by law or any body affiliated to the Institute, may impart education on the subjects covered by the academic courses of the Institute.
(2) The Universities or bodies referred to in sub-section (1) shall, while awarding degree, diploma or certificate or bestowing any designation, ensure that the award or designation do not resemble or is not identical to one awarded by the Institute.
(3) Nothing contained in this section shall enable a University or a body to adopt a name or nomenclature which is in any way similar to that of the Institute.].
_____________________________
&n
1[Section 16 - Officers and employees, salary, allowances, etc.
(1) For the efficient performance of its duties, the Council shall -
(a) appoint a Secretary of the Council to perform such duties as may be prescribed;
(b) appoint a Director (Discipline) to perform such functions as assigned to him under this Act and the rules and regulations framed thereunder;
(c) designate an officer of the Council or the Institute to carry out the administrative functions of the Institute as its chief executive.
(2) The Council may also --
(a) appoint such other officers and employees to the Council and the Institute as it considers necessary;
(1) The Council shall constitute from amongst its members of the following Standing Committees, namely:--
(i) an Executive Committee;
1[(ii) a Finance Committee; and];
(iii) an Examination Committee.
(2) The Council may also form a Training and Educational Facilities Committee and such other Committees from amongst its members as it deems necessary for the purpose of carrying out the provisions of this Act.
2[(3) Each of the Standing Committees shall consist of the President and the Vice-President ex officio, and minimum of three and maximum of five members to be elected by the Council from amongst its members .];
3[***]
&
(1) There shall be established a fund under the management and control of the Council into which shall be paid all moneys received by the Council and out of which shall be met all expenses and liabilities properly incurred by the Council.
(2) The Council may invest any money for the time being standing to the credit of the fund in any Government security or in any other security approved by the Central Government.
1[(3) The Council shall keep proper accounts of the fund distinguishing capital from revenue in the manner prescribed.
(4) The Council shall prepare in the manner prescribed and approve, prior to the start of the financial year, an annual financial statement (the budget) indicating all its anticipated revenues as well as all proposed expenditures for the forthcoming year.
(1) The Council shall maintain in the prescribed manner a Register of the members of the Institute.
(2) The Register shall include the following particulars about every member of the Institute, namely,--
(a) his full name, date of birth, domicile, residential and professional addresses;
(b) the date on which his name is entered in the Register;
(c) his qualifications;
(d) whether he holds a certificate of practice; and (e) any other particulars which may be prescribed.
(3) The Council shall cause to be published in such manner as may be prescribed a list of members of the Institute as on the 1st day of April of each year, and shall, if requested to do so by any
(1) The Council may remove from the Register the name of any member of the Institute,--
(a) who is dead; or
(b) from whom a request has been received to that effect; or
(c) who has not paid any prescribed fee required to be paid by him; or
(d) who is found to have been subject at the time when his name was entered in the Register, or who at any time thereafter has become subject to any of the disabilities mentioned in Section 8, or who for any other reason has ceased to be entitled to have his name borne on the Register.
(2) The Council shall remove from the Register the name of any member in respect of whom an order has been passed under this Act removing him from membership of the Institute.
&n
1 [Section 21 - Disciplinary Directorate
(1) The Council shall, by notification, establish a Disciplinary Directorate headed by an officer of the Institute designated as Director (Discipline) and such other employees for making investigations in respect of any information or complaint received by it,
(2) On receipt of any information or complaint along with the prescribed fee, the Director (Discipline) shall arrive at a prima facie opinion on the occurrence of the alleged misconduct.
(3) Where the Director (Discipline) is of the opinion that a member is guilty of any professional or other misconduct mentioned in the First Schedule, he shall place the matter before the Board of Discipline and where the Director (Discipline) is of the opinion that a member is guilty of any professional or other
1[ Section 21A - Board of Discipline
(1) The Council shall constitute a Board of Discipline consisting of--
(a) a person with experience in law and having knowledge of disciplinary matters and the profession, to be its presiding officer;
(b) two members one of whom shall be a member of the Council elected by the Council and the other member shall be the person designated under clause (c) of sub-section (1) of section 16;
(c) the Director (Discipline) shall function as the Secretary of the Board.
(2) The Board of Discipline shall follow summary disposal procedure in dealing with all the cases before it.
(3) Where the Board of Discipline is of the opinion that a
1[ Section 21B - Disciplinary Committee
(1) The Council shall constitute a Disciplinary Committee consisting of the President or the Vice-President of the Council as the Presiding Officer and two members to be elected from amongst the members of the Council and two members to be nominated by the Central Government from amongst the persons of eminence having experience in the field of law, economics, business, finance or accountancy:
Provided that the Council may constitute more Disciplinary Committees as and when it considers necessary.
(2) The Disciplinary Committee while considering the cases placed before it, shall follow such procedure as may be specified.
(3) Where the Disciplinary Committee is of the opinion that a member is guilty of a profes
1 [Section 21C - Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court
For the purposes of an inquiry under the provisions of this Act, the Authority, the Disciplinary Committee, Board of Discipline and the Director (Discipline) shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908(5 of 1908), in respect of the following matters, namely:--
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) the discovery and production of any document; and
(c) receiving evidence on affidavit.
Explanation.--For the purposes of sections 21, 21A, 21B, 21C and 22, "member of the Institute" i
1 [Section 21D - Transitional provisions
All complaints pending before the Council or any inquiry initiated by the Disciplinary Committee or any reference or appeal made to a High Court prior to the commencement of the Cost and Works Accountants (Amendment) Act, 2006 shall continue to be governed by the provisions of this Act, as if this Act had not been amended by the Cost and Works Accountants (Amendment) Act, 2006.].
_____________________________
1. Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1 [Section 22 - Professional or other misconduct defined
For the purposes of this Act, the expression "professional or other misconduct" shall be deemed to include any act or omission provided in any of the Schedules but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Director (Discipline) under sub-section (1) of section 21 to inquire into the conduct of any member of the Institute under any other circumstances.].
____________________________
1. Section 22 substituted by the Cost and Works Accountants (Amendment) Act, 2006.
1[ Section 22A - Constitution of Appellate Authority
The Appellate Authority constituted under sub-section (1) of section 22A of the Chartered Accountants Act, 1949(38 of 1949), shall be deemed to be the Appellate Authority for the purposes of this Act subject to the modification that for clause (b) of said subsection (1), the following clause had been substituted, namely:--
"(b) the Central Government shall, by notification appoint two part-time members from amongst the persons who have been members of the Council of the Institute of Cost and Works Accountants of India for at least one full term and who is not a sitting member of the Council;".
_____________________________
1.Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 22B - Term of office of members of Authority
A person appointed as a member shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.
_____________________________
1.Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 22C - Procedure, etc., of Authority
The provisions of section 22C, section 22D and section 22F of the Chartered Accountants Act, 1949(38 of 1949) shall apply to the Authority in relation to allowances and terms and conditions of service of its Chairperson and members and in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Chartered Accountants Act, 1949.]
_____________________________
1.Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 22D - Officers and other staff of Authority
(1) The Council shall make available to the Authority such officers and other staff members as may be necessary for the efficient performance of the functions of the Authority.
(2) The salaries and allowances and conditions of service of the officers and other staff members of the Authority shall be such as may be prescribed.
_____________________________
1.Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 22E - Appeal to Authority
(1) Any member of the Institute aggrieved by any order of the Board of Discipline or the Disciplinary Committee imposing on him any of the penalties referred to in sub-section (5) of section 21A and sub-section (3) of section 21B, may within ninety days from the date on which the order is communicated to him, prefer an appeal to the Authority:
Provided that the Director (Discipline) may also appeal against the decision of the Board of Discipline or the Disciplinary Committee to the Authority if so authorised by the Council, within ninety days:
Provided further that the Authority may entertain any such appeal after the expiry of the said period of ninety days, if it is satisfied that there was sufficient cause for not filing the appeal in time.
&nbs
(1) For the purpose of advising and assisting it on matters concerning its functions, the Council may constitute such Regional Councils as and when it deems fit for one or more of the regional constituenciesa that may be specified by the Central Government under clause (a) of sub-section (2) of Section 9.
(2) The Regional Councils shall be constituted in such manner and exercise such functions as may be prescribed.
Any person who,--
(i) not being a member of the Institute--
(a) represents that he is a member of the Institute; or
(b) uses the designation cost accountant; or
(ii) being a member of the Institute, but not having a certificate of practice, represents that he is in practice or practices as a cost accountant;
shall be punishable on first conviction with fine which may extend to one thousand rupees and on any subsequent conviction with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both.
(1) Save as otherwise provided in this Act, no person shall,--
(i) use a name or a common seal which is identical with the name or the common seal of the Institute or so nearly resembles it as to deceive or as is likely to deceive the public;
(ii) award any degree, diploma or certificate or bestow any designation which indicates or purports to indicate the position or attainment of any qualification or competence in cost accountancy similar to that of a member of the Institute; or
(iii) seek to regulate in any manner whatsoever the profession of cost and works accountants.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction w
(1) No company, whether incorporated in India or elsewhere, shall practice as cost accountants.
(2) Any contravention of the provisions of sub-section (1) shall be punishable on first conviction with fine which may extend to one thousand rupees, and on any subsequent conviction to five thousand rupees.
(1) No person other than a member of the Institute shall sign any document on behalf of cost accountant in practice or a firm of such cost accountants in his or its professional capacity
1[ (2) Any person who contravenes the provisions of sub-section (1) shall, without prejudice to any other proceedings which may be taken against him, be punishable on first conviction with a fine not less than five thousand rupees but which may extend to one lakh rupees, and in the event of a second or subsequent conviction with imprisonment for a term which may extend to one year or with a fine not less than ten thousand rupees but which may extend to two lakh rupees or with both.].
____________________________
1.Sub-section 2 substituted by the Cost and Works Accountants (Amendment) Act, 2006.
(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is
No person shall be prosecuted under this Act except on a complaint made by or under the order of the Council or of the Central Government.
1[ Section 29A - Establishment of Quality Review Board
(1) The Central Government shall, by notification, constitute a Quality Review Board consisting of a Chairperson and four other members.
(2) The Chairperson and members of the Board shall be appointed from amongst the persons of eminence having experience in the field of law, economics, business, finance or accountancy.
(3) Two members of the Board shall be nominated by the Council and other two members shall be nominated by the Central Government.]
____________________________
1. Chapter VII A and related sections are inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 29B - Functions of Board
The Board shall perform the following functions, namely:--
(a) to make recommendations to the Council with regard to the quality of services provided by the members of the Institute;
(b) to review the quality of services provided by the members of the Institute including cost audit services; and
(c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements.
________________________________
1.Chapter VII A and related sections are inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1[ Section 29C - Procedure of Board
The Board shall meet at such time and place and follow in its meetings such procedure as may be specified.
_______________________________
1. Chapter VII A and related sections are inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
1 [Section 29D - Terms and conditions of service of Chairperson and members of Board and its expenditure
(1) The terms and conditions of service of the Chairperson and the members of the Board, and their allowances shall be such as may be specified.
(2) The expenditure of the Board shall be borne by the Council.].
_____________________________
1. Chapter VII A and related sections are inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
Chapter VIII - DISSOLUTION OF THE INSTITUTE OF COST AND WORKS ACCOUNTANTS REGISTERED UNDER THE COMPANIES ACT,1956 (1 OF 1956)
&n
On the commencement of this Act,--
(a) the company known as the Institute of Cost and Works Accountants registered under the Companies Act, 1956, shall be dissolved and thereafter no person shall make, assert or take any claims, demands or proceedings against the dissolved company or against any officer thereof in his capacity as such officer except in so far as may be necessary, for enforcing the provisions of this Act;
(b) the right of every member to or in respect of the dissolved company shall be extinguished, and thereafter no member of that company shall make, assert or take any claims or demands or proceedings in respect of that company except as provided in this Act.
(1) On the commencement of this Act, there shall be transferred to and vested in the Institute all the assets and liabilities of the dissolved company.
(2) The assets of the dissolved company shall be deemed to include all rights and powers, and all property, whether movable or immovable of the company, including, in particular, cash balances, reserve funds, investments, deposits and all other interests and rights in or arising out of such property as may be in the possession of the dissolved company and all books of accounts or documents of the dissolved company; and the liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind then existing of that company.
(3) All contracts, debts, bonds, agreements and other instruments of whatever nature to which the dissolved company is a party, subsisting or ha
(1) Every person employed in the dissolved company prior to the 1st day of September, 1958, and still in its employment immediately before the commencement of this Act shall, as from such commencement, become an employee of the Institute, shall hold his office or service therein by the same tenure and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity as he would have held the same under the dissolved company if this Act had not been passed, and shall continue to do so unless and until his employment in the Institute is terminated or until his remuneration, terms and conditions of employment are duly altered by the Institute.
(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force the transfer of the services of any employee of the dissolved company to the Institu
1[Omitted]
_________________________________________
1.Section 3 Omitted by the Cost and Works Accountants (Amendment) Act, 2006. Prior to omission it was read as:
(1) Any member of the Institute aggrieved by any order of the Council imposing on him any of the penalties referred to in clause (a) or clause (b) of sub-section (4) of Section 21, may, within thirty days of the date on which the order is communicated to him, prefer an appeal to the High Court:
Provided that the High Court may entertain any such appeal after the expiry of the said period of thirty days, if it is satisfied that the member was prevented by sufficient cause from filing the appeal in lime.
&
(1) Where an order is made under this Act reprimanding a member, a record of the punishment shall be entered against his name in the Register.
(2) Where the name of any member is removed, the certificate of practice granted to him under this Act shall be recalled and cancelled.
(1) The Central Government may from time to time issue such directions to the Council as in the opinion of the Central Government are conducive to the fulfilment of the objects of this Act and in the discharge of its functions, the Council shall be bound to carry out any such directions.
(2) Directions issued under sub-section (1) may include directions to the Council to make any regulations or to amend or revoke any regulations already made.
(3) If, in the opinion of the Central Government the, Council has persistently made default in giving effect to the directions issued under this section, the Central Government may, after giving an opportunity to the Council to state its case, by order, dissolve the Council, whereafter a new Council shall be constituted in accordance with the provisions of this Act with effect from such date as may
1[Section 36 - Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall lie against the Central Government or the Council or the Authority or the Disciplinary Committee or the Tribunal or the Board or the Board of Discipline or the Disciplinary Directorate or any officer of that Government, Council, Authority, Disciplinary Committee, Tribunal, Board, Board of Discipline or the Disciplinary Directorate, for anything which is in good faith done or intended to be done under this Act or any rule, regulation, notification, direction or order made thereunder,].
______________________
1.Section 36 substituted by the Cost and Works Accountants (Amendment) Act, 2006.
1[ Section 36A - Members, etc., to be public servants
The Chairperson, Presiding Officer, members and other officers and employees of the Authority, Disciplinary Committee, Tribunal, Board, Board of Discipline or the Disciplinary Directorate shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code(45 of 1860).].
______________________________
1. Inserted by Cost and Works Accountants (Amendment) Act, 2006 (7 of 2006).
(1) Where a cost accountant in practice or a firm of such cost accountants has more than one office in India, each one of such offices shall be in the separate charge of a member of the Institute :
Provided that the Council may in suitable cases exempt any cost accountant in practice or firm of such cost accountants from the operation of this sub-section.
(2) Every cost accountant in practice or firm of such cost accountants maintaining more than one office shall send to the Council a list of offices and the persons in charge thereof and shall keep the Council informed of any changes in relation thereto.
(1) Where any country, specified by the Central Government in this behalf by notification in the Official Gazette, prevents persons of Indian domicile from becoming members of any institution similar to the Institute established under this Act or from practising the profession of costs accountancy or subject them to unfair discrimination in that country, no subject of any such country shall be entitled to become a member of the Institute or practise the profession of cost accountancy, in India.
(2) Subject to the provisions of sub-section (1), the Council may prescribe the conditions, if any, subject to which foreign qualifications relating to cost accountancy shall be recognised for the purposes of entry in the Register.
1[ Section 38A - Power of Central Government to make rules
(1) The Central Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely: --
(a) the manner of election and nomination in respect of members to the Council under sub-section (2) of section 9;
(b) the terms and conditions of service of the Presiding Officer and Members of the Tribunal, place of meetings and allowances to be paid to them under subsection (5) of section 10B;
(c) the procedure of investigation under sub-section (4) of section 21;
&nbs
(1) The Council may, by notification in the Gazette of , India, make regulations for the purpose of carrying out the objects of this Act, 1 [***].
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters namely:--
(a) the standard and conduct of examinations under this Act;
(b) the qualifications for the entry of the name of any person in the Register as a member of the Institute;
(c) the qualification required for the purposes of sub-section (4) of Section 5;
(d) the conditions under which any examination or training may be treated as equivalent to the examination or training prescribed for members of the Insti
1[ Section 40 - Rules, regulations and notifications to laid before Parliament
Every rule and every regulation made and every notification issued under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be composed in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, regulation or notification, or both Houses agree that the rule, regulation or notification should not be made or issued, the rule, regulation or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice
1 ['THE FIRST SCHEDULE
[See sections 21 (3),21A(3) and 22]
PART I
Professional misconduct in relation to cost accountants in practice
A cost accountant in practice shall be deemed to be guilty of professional misconduct, if he--
(1) allows any person to practice in his name as a cost accountant unless such person is also a cost accountant in practice and is in partnership with or employed by him;
(2) pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representativ
1[THE SECOND SCHEDULE
[See sections 21 (3), 21B (3) and 22]
PART I
Professional misconduct in relation to cost accountants in practice
A cost accountant in practice shall be deemed to be guilty of professional misconduct, if he --
(1) discloses information acquired in the course of his professional engagement to any person other than his client so engaging him, without the consent of his client, or otherwise than as required by any law for the time being in force;
(2) certifies or submits in his name, or in the name of his firm, a report of an examination of cost accounting and related statements unless the examination of such statements has been made by him or
Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
AI Assistant
