Changes in Chartered Accountant regulations related to CA Article’s Industrial training

Below mentioned regulation was published in Official Gazette on 22.06.2021:

“In the Chartered Accountants Regulations, 1988, –

(i). for regulation 51, the following regulation shall be substituted, namely:-
“51. (1) An articled assistant who has passed the Intermediate (Professional Competence) Examination or Professional Education (Examination-II) or Intermediate examination and has completed a minimum of eighteen months of practical training according to these regulations shall be eligible for industrial training.

(2) (a) An articled assistant may, serve as an industrial trainee for a period specified in sub-regulation (4) in the offices of the Central or State Governments, Central statutory and judicial authorities, regulatory bodies, banking companies and such other departments of Central or State Governments, Institution or Organisation as may be decided by the Council from time to time; or
(b) in any of the financial, commercial, industrial undertakings with minimum fixed assets or minimum total turnover or minimum paid-up share capital as may be approved by the Council from time to time.

(3) An articled assistant shall inform to his principal about such industrial training at least three months before the date on which such training is to commence.

(4) The period of industrial training may be between nine months to eighteen months.

(5) The industrial training shall be received under a member of the Institute. An Associate who has been a member for a continuous period of at least three years shall be entitled to train one industrial trainee at a time and a fellow shall be entitled to train two industrial trainees at a time, whether such trainees be articled assistants or audit assistants.

Provided that in the case of the Central or State Governments, Central statutory and judicial authorities, regulatory bodies, banking companies and other departments of Central or State Governments, Institution or Organisation, the industrial training shall be imparted by an officer who is also a member of the Institute of that Government, Authority, Body, Bank, Department of Central or State Government, Institution or Organisation, as may be recognised by the Council from time to time.

Provided further that the entitlement of such officer who is also a member of the Institute to train the industrial trainee shall be determined by the Council from time to time keeping in view the number of years of service and the nature of services being rendered by the department concerned.

(6) An agreement of training shall be entered into in the form approved by the Council.

(7) On completion of the industrial training, the member shall issue a certificate in the form approved by the Council to the trainee and forward a copy of the same to the Secretary.

(8) The period of industrial training referred under this regulation, shall be treated as service under articles for all purposes of these Regulations, provided the certificate referred to in sub-regulation (7) is produced.

(9) Subject to the provisions of sub-regulation (1), an articled assistant may also serve as an industrial trainee for a period from six to eighteen months in any foreign Country under a member of the accountancy body in that country recognized by the International Federation of Accountants in such manner as may be determined by the Council from time to time.

(10) A member may depute a trainee for industrial training upto a period of three months in any foreign Country, in such manner as may be determined by the Council.

(11) The industrial trainee shall be paid such monthly stipend as may be agreed mutually between the industrial trainee and the member imparting the industrial training.”;

(ii). in regulation 54, in sub-regulation (5), for the words “one year”, the words “eighteen months” shall be substituted.

(iii). in regulation 58:

(a) in sub-regulation (2), –
(A) for the words “If the period of the excess leave taken is sought to be served”, the words “The period
of excess leave taken shall be served” shall be substituted;
(B) for the words “last served his articles,” the words “last served his articles and” shall be substituted;

(b) sub-regulation (4) shall be omitted”

 

Further, ICAI has announced below mentioned changes in the regulation in addition to above regulations:

Amendments in Regulations 58 of Chartered Accountants Regulations, 1988 – Supplementary Articles

The Ministry of Corporate Affairs (MCA), Govt. of India, has conveyed the approval of the Competent Authority on the amendments in Regulations 58 of Chartered Accountants Regulations, 1988 and accordingly, the Notification (in Hindi & English versions) has been notified in the Gazette on 22nd June, 2021. The copy of notification is webhosted at Institute’s website under the link https://resource.cdn.icai.org/65365council52693.pdf

The Institute has implemented the revised Regulation 58 as under:

58. Supplementary Articles

(1) An articled assistant who has taken leave in excess of the period of leave to which he is entitled under Regulation 59 shall be required to serve for a further period equivalent to the excess leave taken by him.

(2) The period of excess leave taken shall be served under the principal with whom such articled assistant last served his articles and a supplementary deed of articles in the form approved by the Council (Form 107) shall be executed in continuation of the previous articles.

(3) The supplementary deed, duly stamped, shall be sent to the Secretary for registration so as to reach him within 60 days of the expiry of the previous articles. No fee shall be charged for the registration of such supplementary deed of articles:

Provided that the Executive Committee may condone the delay in sending the supplementary deed in appropriate cases.

 

To read full amendment CLICK HERE.

 

You can book phone consultation/ assistance online with expert as mentioned below: