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So You Want To Do Articleship?
Initial Experience Articleship Scheme Is CA cheap? The Stipend Dummy Articleship Control Mechanism Notes for serious aspirants 1. The big four… 2. Other bigger Indian firms… 3. Why is that the information on these so limited… 4. Is big beautiful… … Continue reading
Hi Sir
Thanks for the guidance. Also I needed to know if there are any restritions on transfer in the last one year of articleship, and if Regulations 56(1) is an exception to the given restriction?
plz reply
Thanks
Its actually like this- just as we have Income Tax Act, there is the CA Act 1949. Then we have IT Rules containing operative aspects of the Act – similarly there is the CA Regulations 1988. Now under this CA Regulations, the Regulation 56(1) deals with Termination of Articles. The Regulations were amended in 2007.
The amended Regulation 56(1) reads: “Every articled assistant executing the deed of articles for the full period of articled training prescribed under these regulations, shall be required to complete such articles only with the member, who has engaged him:
Provided that the articles so engaged may, by agreement between the articled assistant and his principal, be terminated under such exceptional circumstances or conditions, as may be decided by the Council…”
Now, the highlighted part was not there previously – it was added by the amendment. So previously there was no restriction as to transfer. (During my articleship, I myself took inter-regional transfer twice)
While these amendments were done in 2007, it was only in March 2009 that the Council came out with its own interpretation as to what constituted “exceptional circumstance”.
So the decision of the Council regarding restrictions has to be considered while putting into effect the regulation 56(1) relating to termination.
Regarding last year of articleship – there is no restriction regarding termination for industrial training and certain other conditions as put by Council in its announcements of 19-05-09 and 01-07-09. However, as I wrote in your other reply, the Institute has kept with itself full discretion to decide whether the trainee can be allowed termination / transfer or not (the Institutes discretion would override that of the Principal -ie. if Institute says yes, Principal would not say no. And in contrary case, if Principal says yes, and Institute says no – then there is no remedy!).
In some ways, therefore, the Institute has taken away the discretion available to the Article and Principal who are the two parties to the Articleship agreement on matter relating to termination, by exercising its overriding powers vested to it by virtue of the amended regulation.
This is ekta from mumbai. I have cleared PCC in november in June 2009 with a total of 343 marks. I have already completed 2 years of articleship and looking for a firm where i can get exposure in Taxation and Audit. So can you please provide me with names of few CA firms in mumbai which are currently having vacancies.I am currently in TY bcom. I also need information regarding the industrial training programme launched by ICAI.
Hi. You have written that you have completed two year articleship… have you not got exposure to audit and taxation even till now? For firms having vacancies, I would suggest go to WIRC and check out their notice board. (In EIRC, of which I have experience, they used to have notice board providing ads of latest articleship opportunities – many of which were really nice – that was apart from various ads coming out in local english dailies)
For industrial training go through Point 9 of this very article.
Also, my reply to a similar query on industrial training: http://indiapoint.net/ca/2008/10/31/articleship-certain-rules/comment-page-1/#comment-110
Please tell me what is the remedy in case the employer is not ready to give the transfer?
If you fulfil the conditions of transfer and/or have clearance from Institute, then you can use Form 120. This you have to submit to your Principal with a copy to Secretary ICAI within 15 days. The institute shall give a time of 3 months to Principal to issue the certificate – which the Principal should issue. If he does not issue the certificate, then within 15 days of expiration of 3 months, it shall be deemed that the certificate has been issued and the date on Form 120 shall be taken as date of termination.
So, in a way, you issue your own certificate – but in my view this is an extreme measure. Things should not come to such a pass. These things can be sorted through talks.
Like you mentioned clearance from the institute, ideally how long should the procedural formalities take supposing I get a written representantion approved.
Also, the verbal confirmation from the institute authorities can suffice the purpose?
Frankly, I dont know. In my times there were no such things – and my Principals were quite good and understanding (seemingly tough from outside, but understanding from inside).
During my training I worked under three Principals. The first one gave me transfer at 2nd month of my articleship (CIRC to EIRC), and the second transfer was on 17th month (EIRC to CIRC). The third one even asked me why I was not going for industrial training! And all this despite the fact that I was usually given critical assignments – that required coordination with auditee company officials and firm staff / other articles.
ICAI has framed all these new rules – and, I am totally at loss to answer your this question. Its best that you go to ICAI regional office, and talk to concerned Officials there. They would best know about such things.
The only thing I can say is verbal confirmations are of no use – because it can always be denied – and you would only be putting yourself in a difficult situation.
The procedure of termination usually depends on how efficient is your Region. Normally it takes max 2 weeks. ie. one gets the termination letter from Regional Office usually within 2 weeks. But it can even be more – in this case I found EIRC very frustrating (at my time), where I had to pursue the case upto Chairman EIRC and it took nearly three (frustrating) months.
The other thing is – one does not have to wait for termination letter (issued by ICAI office) for joining articleship at other place. The new principal should take you as article based on papers signed by previous Principal.
hi sir,
i hv completed 2 years of articleship after completeing ca inter in may 2007 and have also appeared in group 2 of finals in nov09.. i want to do industrial training in chandigarh in ranbaxy or wwics..however i dont find them empanelled on the list of approved industries issued by icai..furhtermore i am not clear about the procedure and the paper work involved therein..do i have to terminate my present articleship.. sir please help me with the details on above..
Firstly, plz contact the CA, working in the Company in which you want to do articleship – because even the industrial training can be done only under a CA who is employee of that company
Secondly, if that company is not in the empanelled list of ICAI, then you have to check whether it qualifies as per the criteria of ICAI, then apply for the empanelment of the company alongwith your industrial training application
Thirdly, to do industrial training, you will have to take termination from your present principal
More details in a previous comment: http://indiapoint.net/ca/2008/10/31/articleship-certain-rules/comment-page-1/#comment-109
this is amrita i have passed cpt in june this year n i will be writing group1 of ipcc this may. after that i will have to do my articleship. i stay in hyderabad. so can you tell me few firms which offer excellent guidance. when shuould i start my articleship… thanks
Hyderabad is a nice place to do articleship. Its nice that you have decided to search for articleship in right ernest.
I would suggest that you check with ICAI office at Hyderabad, and Go and meet a few CAs – and ask them about the work profile of articles that is on offer under them. Your criteria should be:
1) Focus of training: Audit or Taxation / etc or a rotation of work
2) Kind of boss – everyone differs in temperament – and CAs can exist in all shades. Very few students in their articleship are happy – so search for a ‘good’ boss. Articleship is typically about mentoring – and the nature and knowledge of boss can make articleship an enjoyable or a horrible experience!
3) Whether you would get leave as per rules of ICAI
4) How many articles are already working in the firm – you may even wish to talk with them
5) Kind of stipend
6) Whether it would involve going outstation or not
7) Whether the firm uses latest technologies like latest computers / laptops etc – whether you would be provided one for the work
8 ) Distance of office from your home.
Based on these criteria choose the one which is best fit.
Thanks for your guidance.
i have cleared my pe-II in jan 2009 but becoz of personal family reasons i was not able to join articleship . now i have got it.but i m confused to join becoz i live in thane and firm is in vt and it is more in financial sector and does not provide service sector but the ca says he will give a chance to learn and somewhat like that can u suggest something regarding this the amount he his offering is quiet good but it is a small firm plz suggest something
I would really suggest that you join a firm nearer to your home – and it does not matter whether the firm is large or small till you get opportunity to learn!
In the end, if after CA exams you want to go for service – its your marks that would count the most – articleship experience after that. If you go for practice – marks does not really matter.
However in your current offer take into account:
1) Transport cost (less significant)
2) Transport time (more significant)
3) Office time – you may have to work late on certain occasions due to work pressure
4) What is the saving potential of your stipend?
5) Would you get time to study? Would you get leave as per rules of ICAI?
6) Do check the nature of ‘financial sector’ work that he is doing – whether this is his side business and he is engaging articles in it in contravention to ICAI rules (many CAs indulge in such malpractice by making articles work in their side business like PAN centers, Stock Market franchisees, Loan agencies, Mutual Fund Processing etc)! If he is doing outsourced work in Professional capacity – then there is nothing to worry.
(b.t.w finance sector is part of service sector!)
Good Luck!
Thanks for giving such a wonderful guidance..
sir,
i need Ur advice
i m the owner of the proprietor concern registered under m vat can i do article ship? if yes i have to mention in form 103 regarding this. i have filled my article-ship form on 3jan. – but not mentioned that as i was not knowing that. today just i was talking with senior he said me about that i have to inform it with the institute. if i do not inform the institute my article-ship will be cancelled.
If you are the ‘Proprietor’ of a business – it means you are full time (self) employed. Consequently you are not eligible to undertake articleship training. The relevant regulation 65 is quoted below:
Regulation 65 : Articled assistant not to engage in any other occupation
“Without the previous permission of the council, obtained on application made in the approved form, no articled assistant shall, during the period of his service as an articled assistant, take any other course of study or training whether academic, professional, or engage in any business or occupation.”
Moreover, the permitted other engagements (subject to conditions) – ie. engagements for which ICAI can give permission are:
1) Teaching for specified hours per week
2) (Non Executive) Director in family business
3) Sleeping partner in family business
Details in the link: http://icai.org/resource_file/14481student_manual_10.pdf
Given this – either dont engage in articleship training or convert your proprietorship firm into partnership by engaging other family members and yourself become a sleeping partner.
Also, do talk about this issue with concerned Asstt Secy / Deputy Secy of your regional council. If you are in place like Mumbai where there is Regional Council – directly meet with the Deputy Secy.
The problem if you hide this matter – then even if you become CA – then anytime in your career – if this issue comes in front of ICAI (your adversaries / competitors / disgruntled articles! can put this up) – you risk cancellation of your CA degree – because there is the evidence of registration of your firm and also your registration with Commercial Tax authorities as a proprietor!
sir,
thanks for ur advice.but sir the business is handled by my dad completely if i transfer the authority to any other family members like my dad or someone other.its ok till feb or like that.its ok na
During the period of articleship from day one to the last day – your name should not come under any employment / executive position in any organisation / business – at least there should be no paper trail of any kind!.
(For example – outside office hours – during articleship many students start to file IT returns of their neighbours and family friends – but they dont advertise themselves as Tax Consultant by printing visiting cards! Similarly their are articles who help their parents in family business – but they dont become proprietor or partner in the business by signing or registering deeds!)
The position of ICAI is very clear – during articleship you should not be engaged in any occupation.
Prior to articleship and after afticleship – you can engage yourself in anything you wish to do. All restrictions put by ICAI is for the period of articleship.
ICAI gives relaxation only for ‘permitted engagements’ – as I have described in previous reply, and for those who want to pursue some additional course, ICAI gives approval only for ‘specified courses’. The rules of ICAI are getting stricter day by day – so during articleship period – dont take risks.
thanks for Ur advice sir
the business in which i m the proprietor is completed handled and managed by my dad .i do not look after it at all.if i transfer it in my dad’s name till Feb its OK Na
Reply by Anup: I dont know what is the date you have filled in the form as date of commencement of articleship. On the date which you are filling as your articleship commencement date you should not be in any other occupation.
sir,
i need Ur advice
i am doing my articleship in a firm but my principle is not in that firm he is outsider. is there any problem.now i completed 10 month articleship i want to terminate now can i do distance from existing firm more than 75 km nto my house i want to join near by office
pls give me a proper advice
I do not understand what you mean by “my principle is not in that firm he is outsider“. Your Principal is one whose name you have filled in the articleship form – and in whose name the confirmation letter has come from the Institute. The Principal may assign you under any person depending on the kind of work he has.
You can check details about your Principal and Firm from these links:
Member Directory: http://icai.org/post.html?post_id=1812&c_id=92
Firm Directory: http://icai.org/post.html?post_id=1813&c_id=93
As I understand – either you are doing articleship far from your hometown – or you have been assigned to a place that is far from your hometown. If its the latter, then I guess you dont have options open.
However if you joined articleship in a firm that is more than 75 kms from your hometown – and later on the new rules of transfer came into being – then you do have a chance. If this is the case – then talk to your Principal (the one whose name is in the articleship letter from ICAI) and discuss with him the kind of problems you are facing. I would understand that a frank discussion would lead to some positive solution for you.
But keep one thing in mind that you have to keep your Principal in good books. As an article you dont have much options on your own. Its only when your Principal recommends – that your case gets looked at favourably by the Institute.