[TO BE PUBLISHED IN PART III SECTION 4 OF THE GAZETTE OF INDIA]
NEW DELHI: DATED 12.5.2004

NOTIFICATION
(Chartered Accountants)

No. 1-CA (7)/75/2004: In exercise of the powers conferred by Clause (ii) of Part II of the Second Schedule to the Chartered Accountants Act, 1949, and in supersession of Notification No. 1-CA (7)/29/95 dated 1st March, 1995 published in Part III Section 4 of the Gazette of India dated 25th March, 1995, the Council of the Institute of Chartered Accountants of India hereby specifies that a member of the Institute in practice shall be deemed to be guilty of professional misconduct, if he on behalf of the firm of chartered accountants in which he is a partner (a) consisting of 4 or more partners but less than 8 partners with at least one partner holding a certificate of practice for five years or more; or (b) consisting of 8 or more partners with at least one partner holding a certificate of practice for five years or more; accepts or carries out any audit work involving receipt of audit fees (excluding reimbursement of expenses, if any) for such work of an amount less than what is specified hereunder:-

		Practising firm having 4 or more partners but less than 8 partners	Practising firm having 8 or more partners
(i)	In cities with population of 2 million and above.	Rs. 5000/- p.a.	Rs. 9000/- p.a.
(ii)	In cities/towns having population of less than 2 million.	Rs. 3000/-p.a.	Rs. 6000/- p.a.

Provided that such restriction shall not apply in respect of the following:-

i. audit of accounts of charitable institutions, clubs, provident funds, etc. where the appointment is honorary i.e. without any fees;
ii. statutory audit of branches of banks including regional rural banks;
iii. audit of newly formed concerns relating to two accounting years from the date of commencement of their operations; and
certification or audit under Income-tax Act or other attestation work carried out by the Statutory Auditor.

This becomes operative for all audits relating to accounting periods beginning on or after 1.4.2004.

Explanation:

For the purpose of this notification, the expression statutory auditor means and includes a chartered accountant appointed as an auditor under a Central/State or Provincial Act as well as an auditor appointed under any agreement.