CA Final MCQ Book 1581 It is not a misconduct since CA act does not applies outside india … even the answer to this relevent question and even question 7(i) in PM of ICAI is modified in 2017 edition …

3 answers

Ravi Staff March 18, 2019

2 opinions are possible, i used to have same view earlier. but i changed my view and pm also supports it. See below language of clause 4
A Chartered Accountant in practice is deemed to be guilty of professional misconduct if he: enters into partnership, in or outside India, with any person other than Chartered Accountant in practice or such other person who is a member of any other professional body having such qualifications as may be prescribed, including a resident who but for his residence abroad would be entitled to be registered as a member under clause (v) of sub-section (1) of section 4 or whose qualifications are recognized by the Central Government or the Council for the purpose of permitting such partnerships.
Further this is text from PM See page 22.15
https://resource.cdn.icai.org/44634bos34430pmcp22.pdf

#1

Sir, this PM is 2017 edition … its earlier pm has the same question in its place with little variation in the question … earlier question was even extended firther to ask us what will be your answer if CA is practising outside india …. this extension of question is deleted by ICAI along with answer due to controversy answer of this question i guess … my stand is why you a CA ll practise outside india with indian cop outside india … but it can happen … even sir your mcq 1581 asks us the question which the pm does not contain … pm contain the question of ca is practising inside india whereas your mcq mat contain the question ca is practising outside india … so, as you said above to refer to pm page 22.5 is not rightly said by you , you first must see your mcq question both pm 2015 and 2017 edition 1st …

#2
Ravi Staff March 19, 2019

Dear Sachin
If CA practices accountancy profession outside india, he will be deemed to be in practice. So Schedule I will get applicable even if he doesn’t take COP. Further Clause 4 clearly says, whether in india or outside india. Further it is sensitive issue, ICAI doesn’t want CAs get associated with foreign professionals and give them indirect entry in India. There are enough points to say it is not allowed.
Further i also agree that, how can indian law be applicable outside india. Also it will be unjust on CA outside india not able to collaborate with local accountancy professionals of foreign countries.  So there points on this side also.
ICAI removed para which they inserted, but they didnt say it is allowed. They could have redrafted and given the answer if there was clarity. 
Looking at this it is controversial matter, in absence of any explicit clarification by ICAI we can express both in theory answer and select one in MCQ and hope that they have also selected same. ICAI wont target controversial issues in exams.

#3

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