The Hindu Business Line : ICAI okays plan to allow CAs to fix fees per assignment

THE Central Council of the Institute of Chartered Accountants of India (ICAI) has approved a proposal that would allow CAs to fix their fees on the basis of results of the assignment or "costs saved/revenue increase" derived by the clients. However, actual implementation of this decision would require an amendment in the Chartered Accountants Act, 1949.

Currently, the Act prohibits a CA from charging fees on a percentage basis or on the basis of success achieved in any assignment, including a non-audit related assignment.

CAs have been seeking a level playing field as members of other professions and non-professionals enjoy the liberty of charging fees on percentage basis or on the basis of result of assignments.

"The council is of the view that the prohibition on success-based fees or charging fees on a percentage basis has outlived its utility. This restriction was withholding the capacity building of CA firms in India. The Council is now in favour of allowing CAs to charge fees on specific assignments on the basis of results achieved,"Mr Sunil Goyal, President, ICAI, told Business Line.

The ICAI plans to approach the Government for giving effect to this amendment as early as possible.

"The Department of Company Affairs has to consider and decide whether they can grant us permission on the issue or whether it would require an Act amendment."

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