No: 23 Dated: May, 19 1959

THE COST AND WORKS ACCOUNTANTS ACT, 1959

ACT NO. 23 OF 1959

      An Act to make provision for the regulation of the profession of cost and works accountants.

BE it enacted by Parliament in the Tenth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.—(1) This Act may be called the Cost and Works Accountants Act, 1959.

(2) It extends to the whole of India;

(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions and interpretation.—(1) In this Act, unless the context otherwise requires,—

(a) “associate” means an associate member of the Institute;

(aa) “Authority” means the Appellate Authority referred to in section 22A;

(aaa) “Board” means the Quality Review Board constituted under section 29A;

(b) “cost accountant” means a person who is a member of the Institute;

(c) “Council” means the Council of the Institute;

(d) “dissolved company” means the Institute of Cost and Works Accountants registered under the Companies Act, 1956 (1 of 1956);

(e) “fellow” means a fellow of the Institute;

(ea) “firm” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932), and includes,—

(i) the limited liability partnership as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); or

(ii) the sole proprietorship, registered with the Institute;

(f) “Institute” means the Institute of Cost Accountants of India constituted under this Act;

(fa) “notification” means a notification published in the Official Gazette;

(fb) “partner” shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932) or in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be;

(fc) “partnership” means—

(A) a partnership as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932); or

(B) a limited liability partnership which has no company as its Partner;

(g) “prescribed” means prescribed by regulations made under this Act;

(h) “President” means the President of the Council;

    (2) Save as otherwise provided in this Act, a member of the Institute shall be deemed “to be in practice” when, individually or in partnership with one or more members of the Institute in practice, or in partnership with members of such other recognised professions as may be prescribed he, in consideration of remuneration received or to be received,—

(i) engages himself in the practice of cost accountancy; or

(ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or certification or auditing of cost accounting and related statements or holds himself out to the public as a cost accountant in practice; or

(iii) renders professional services or assistance in or about matters of principle or detail relating to cost accounting procedure or the recording, presentation or certification of costing facts or data; or

(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a cost accountant in practice; and the words “to be in practice”, with their grammatical variations and cognate expressions, shall be construed accordingly.

Explanation.—A member of the Institute who is a whole-time salaried employee of any person shall not be deemed to be in practice within the meaning of this sub-section.

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