Saturday, January 24, 2015

ICAI DOUBLED STIPEND FOR ARTICLE ASSISTANT (CA STUDENTS)


[TO BE PUBLISHED IN THE GAZETTE OF INDIA , EXTRAORDINARY, 
PART III, SECTION 4] 
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 
NOTIFICATION 
New Delhi, the 23rd January, 2015 

No. 1-CA(7)/167/2014.- Whereas certain draft regulations further to amend the Chartered Accountants Regulations, 1988, were published as required by sub-section (3) of section 30 of the Chartered Accountants Act, 1949 (38 of 1949), in the Gazette of India, Extraordinary, Part III, Section 4, dated the 10th September, 2014, inviting objections and suggestions from persons likely to be affected thereby, before the expiry of forty -five days from the date on which the copies of the Gazette containing the said notification were made available to the public; 

And whereas the copies of the said Gazette were made available to the public on the 12th September, 2014; 

And whereas the objections and suggestions received from the public on the said draft regulations have been considered by the Council of the Institute; 

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30 of the said Act, the Council, with the approval of the Central Government, hereby makes the following regulations further to amend the Chartered Accountants Regulations, 1988, namely:-

1.          (1) These regulations may be called the Chartered Accountants (First Amendment) Regulations, 2015.

(2)         They shall come into force on the date of their final publication in the Official Gazette.

2.            In the Chartered Accountants Regulations, 1988 (hereinafter referred to as the said regulations),-

(i)             in regulation 28E, in sub-regulation (1), in clause (b), for the words “nine months”, the words “eight months” shall be substituted.

(ii)          in regulation 48, in sub-regulation (1), for the Table, the following Table shall be substituted, namely:-

“ Table

Classification  of
the
normal
During  the
During
the
During
the
place   of   service   of  the
first year of
second
year
remaining

articled assistant



training
of training
period
of







training

(1)



(2)
(3)

(4)

(i)  Cities/towns
having
a
Rs.2000/-
Rs.2500/-
Rs.3000/-
population
of
twenty





lakhs and above







(ii) Cities/towns
having
a
Rs.1500/-
Rs.2000/-
Rs.2500/-
population of
four lakhs





and above but less than twenty lakhs





C:\Users\admin\Desktop\Final Notification for Circulation.docx                               





(iii)Cities/towns
having   a
Rs.1000/-
Rs.1500/-
Rs.2000/-; “
population  of
less  than



four lakhs





(iii)         in regulation 204, for the words “and International Trade Laws and World Trade Organisations” the words, “International Trade Laws and World Trade Organisation and International Taxation” shall be substituted.

[File No. 1-CA(7)/167 /2014]

Sd/-
V. Sagar

Old Rates wef 01.06.2006 has been reproduced here under

Stipend to articled assistants applicable on or after June 1, 2006

A person registered as an Articled is entitled to receive a minimum monthly stipend as per the rates specified under the Chartered Accountants Regulations, from time to time. The current minimum rates of monthly stipend payable, depending on the situation of the normal place of services of the articled assistants, are as follows:

Classification of the normal place of service of the articled assistantsStipend payable per month during
During the first year of trainingDuring the second year of trainingDuring the remaining period of training
1.Cities / Towns having population of 20 lakhs and aboveRs.1000Rs.1250Rs.1500
2.Cities / Towns having population of 4 lakhs and above but less than 20 lakhsRs.750Rs.1000Rs.1250
3.Cities / Towns having population of less than 4 lakhsRs.500Rs.750Rs.1000



PERIOD OF APPOINTMENT OF AUDITOR UNDER COMPANIES ACT, 2013


QUESTION: TENURE OF AUDITOR APPOINTMENT UNDER COMPANIES ACT, 2013.

ANSWER:  There are Two Situations: First Analyze Section- 139(2) Applicable on your company or Not. Companies fall under Section- 139(2) as given below(exclude small company and one person company):

·         All Listed Companies
·         Every Public Company having a Paid-Up Share Capital of Rs. 10 Crore (Ten crore rupees) or more.
·         Every Private Limited Company having Paid-Up Share Capital of Rs. 20 Crore (Twenty crore rupees) or more.
·         All Companies having public borrowings from Financial Institutions, banks or public deposits of Rs. 50 Crore (Rupees Fifty Crore Only) or more.

A. If Provisions of Section- 139(2) Not Applicable on your Company:

v  If your company doesn’t fall under conditions given in section 139(2) then irrespective of his last tenure you can freely appoint auditor for 5 years.

E.G: If an auditor is appointed as Statutory auditor of Company (doesn’t fall under Section- 139(2)) from last 5 or more years. Then can he appoint as auditor of same company.

Solu: Yes, if Company doesn’t fall under Section- 139(2) then IGNORE the last term of appointment of Auditor and appoint him for fresh 5 years.

E.G: If an auditor is appointed as Statutory auditor of Company (doesn’t fall under Section- 139(2)) from last 2-5 years. Then can he appoint as auditor of same company.

Solu: Yes, if Company doesn’t fall under Section- 139(2) then IGNORE the last term of appointment of Auditor and appoint him for fresh 5 years.

B. If Provisions of Section- 139(2) Applicable on your Company:

v  If your Company falls under conditions given in section 139(2) then for appointment of auditor you have to check his earlier term of appointment.

E.G: If an auditor is appointed as Statutory auditor of Company (fall under Section- 139(2)) from last 5 or more years. Then can he appoint as auditor of same company.
Solu: No, if Company fall under Section- 139(2) then such auditor can’t be appointed under Companies Act, 2013 for fresh term of 5 Year. But Act has given 3 year transitional period to Such Companies. Therefore, same auditor can be appointing for 1 year, 2 year and maximum 3 year.

 E.G: If an auditor is appointed as Statutory auditor of Company (fall under Section- 139(2)) from last 2-5 years. Then can he appoint as auditor of same company.

Solu:  Yes, such person can be appointing as Auditor of the Company. But for the remaining tenure.
(5 YEAR- EARLIER TENURE= REMAINING TENURE)

If he is Auditor from following years
If Sect- 139(2) is Applicable –Remaining Tenure
If Section- 139(2) Applicable-  Remaining Tenure
1
4 years
5
2
3 ( transitional Period)
5
3
3 ( transitional Period)
5
4
3 ( transitional Period)
5
5
3 ( transitional Period)
5
6
3 ( transitional Period)
5
7
3 ( transitional Period)
5








  Illustration explaining rotation in case of audit firm where section 139(2) applies

Number of consecutive years for which an audit firm has been functioning as auditor in the same company [in the first AGM held after the commencement of provisions of section 139(2)] 
Maximum number of consecutive years for which the firm may be appointed in the same company (including transitional period)  
Aggregate period which the firm would complete in the same company in view of column I and II  
10 years (or more than 10 years)
3 years ( transitional Period)
13 years or more 
9
3 years
12 years
8
3 years
12 years
6
4 years
10 years
4
6 years 
10 years
2
8 years
10 years
1
9 years 
10 years













1


The Audit Committee shall recommend to the Board, the name of an individual auditor or of an audit firm who may replace the incumbent auditor on expiry of the term of such incumbent. 

Where a company is required to constitute an Audit Committee, the Board shall consider the recommendation of such committee, and in other cases, the Board shall itself consider the matter of rotation of auditors and make its recommendation for appointment of the next auditor by the members in annual general meeting. 

For the purpose of the rotation of auditors- 

  1. (i) in case of an auditor (whether an individual or audit firm), the period for which the individual or the firm has held office as auditor prior to the commencement of the Act shall be taken into account for calculating the period of five consecutive years or ten consecutive years, as the case may be; 
  2. (ii) the incoming auditor or audit firm shall not be eligible if such auditor or audit firm is associated with the outgoing auditor or audit firm under the same network of audit firms. 
    • Explanation. I - For the purposes of these rules the term “same network” includes the firms operating or functioning, hitherto or in future, under the same brand name, trade name or common control. 
    • Explanation. II - For the purpose of rotation of auditors,- 
      • (a) a break in the term for a continuous period of five years shall be considered as fulfilling the requirement of rotation; 
      • (b) if a partner, who is in charge of an audit firm and also certifies the financial statements of the company, retires from the said firm and joins another firm of chartered accountants, such other firm shall also be ineligible to be appointed for a period of five years.
Note: 1. Individual auditor shall include other individuals or firms whose name or trade mark or brand is used by such individual, if any. 

2. Consecutive years shall mean all the preceding financial years for which the individual auditor has been the auditor until there has been a break by five years or more

Note:1. Audit Firm shall include other firms whose name or trade mark or brand is used by the firm or any of its partners. 

2. Consecutive years shall mean all the preceding financial years for which the firm has been the auditor until there has been a break by five years or more.
 
Divesh Goyal  +91-8130757966 
Company Secretary
csdiveshgoyal@gmail.com
Goyal Divesh & Associate
265, Sector-7, Rohini , Delhi-110085