CA Ram and CA Krishna are close friends and are into practice as sole proprietors.

CA Ram and CA Krishna are close friends and are into practice as sole proprietors. Both decided to
expand their focus on taking up more assignments in the field of Goods & Services Tax. On the back
of the same, they both decided to conduct a joint training session for their clients on GST and
decided to share the total fee collected thereof. They invited another CA from their professional
circle to join the initiative. However, the person declined the same informing that this act was
against professional ethics and would lead to disciplinary action from ICAI. Whether the act of
conducting joint training session on GST by CA Ram & Krishna and sharing of the fee collected leads
to professional misconduct as per the Chartered Accountants Act 1949?

a) Yes, as per clause 2 of Part I of First Schedule, a CA in practice is allowed only to pay / share the
commission or brokerage or profits from his professional business only with another practicing
CA. It does not allow sharing of any fee collected from joint training sessions. Hence both CA
Ram & Krishna are guilty of professional misconduct.


B) Yes, CA Ram & Krishna will be held guilty of professional misconduct for conducting the joint
training session on GST as per part IV (other misconduct) of the First Schedule of the Chartered
Accountants Act 1949.


C) Yes, this is a case of solicitation of client whereby, CA Ram can influence clients of CA Krishna
and vice-versa. Hence the conduct of the joint training session will lead to being guilty of
professional misconduct as per clause 6 of Part I of First Schedule of the Chartered Accountants
Act 1949.


D) No, as per the recent decisions of Ethical Standards Board, it is permissible for two or more CAs
in practice collectively to have joint training sessions for their clients on GST, and share the fee
collected from the clients thereof.