TaxByKKLaws by Sector

Cost Accountants Act, 1959

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

Sector ProfessionsPurpose Regulation & LicensingAct No. 23 of 1959Enacted 19 May 1959Ministry Corporate Affairs
All Acts Competition Act, 2002 Chartered Accountants Act, 1949

TaxByKK · Laws by Sector · taxbykk.com

Index of provisions · 10 chapters, 59 sections

I PreliminaryII The Institute of Cost AccountantsIII Council of the InstituteIV Register of MembersV MisconductVI Regional CouncilVII PenaltiesVIIA Quality Review BoardVIII Disssolution of the Institute of Cost and Works Accountants Registered under the Companies Act, 1956 (1 of 1956)IX Miscellaneous

Chapter I Preliminary2 sections

  1. 1Short title, extent and commencement
  2. 2Definitions and interpretation

Chapter II The Institute of Cost Accountants6 sections

  1. 3Incorporation of the Institute
  2. 4Entry of names in the Register of members
  3. 5Fellows and Associates
  4. 6Certificate of practice
  5. 7Members to be known as cost accountants
  6. 8Disabilities

Chapter III Council of the Institute14 sections

  1. 9Constitution of the Council of the Institute
  2. 10Re-election or re-nomination to Council
  3. 10ASettlement of disputes regarding election
  4. 10BEstablishment of Tribunal
  5. 11Nomination in default of election
  6. 12President and Vice-president
  7. 13Resignation of membership and casual vacancies
  8. 14Duration and dissolution of Council
  9. 15Functions of the Council
  10. 15AFunctions of Institute
  11. 15BImparting education by Universities and other bodies
  12. 16Officers and employees, salary, allowances, etc
  13. 17Committees of the Council
  14. 18Finances of the Council

Chapter IV Register of Members2 sections

  1. 19Register of members
  2. 20Removal from the Register of members

Chapter V Misconduct11 sections

  1. 21Disciplinary Directorate
  2. 21ABoard of Discipline
  3. 21BDisciplinary Committee
  4. 21CAuthority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court
  5. 21DTransitional provisions
  6. 22Professional or other misconduct defined
  7. 22AConstitution of Appellate Authority
  8. 22BTerm of office of members of Authority
  9. 22CProcedure, etc., of Authority
  10. 22DOfficers and other staff of Authority
  11. 22EAppeal to Authority

Chapter VI Regional Council1 section

  1. 23Constitution and functions of Regional Councils

Chapter VII Penalties6 sections

  1. 24Penalty for falsely claiming to be a member, etc
  2. 25Penalty for using name of the Council, awarding degrees of cost accountancy, etc
  3. 26Companies not to engage in cost accountancy
  4. 27Unqualified persons not to sign documents
  5. 28Offences by companies
  6. 29Sanction to prosecute

Chapter VIIA Quality Review Board4 sections

  1. 29AEstablishment of Quality Review Board
  2. 29BFunctions of Board
  3. 29CProcedure of Board
  4. 29DTerms and conditions of service of Chairperson and members of Board and its expenditure

Chapter VIII Disssolution of the Institute of Cost and Works Accountants Registered under the Companies Act, 1956 (1 of 1956)3 sections

  1. 30Dissolution of the Institute of Cost and Works Accountants registered under the Companies Act, 1956
  2. 31Transfer of assets and liabilities of the dissolved company to the Institute
  3. 32Provisions respecting employees of the dissolved company

Chapter IX Miscellaneous10 sections

  1. 33[Omitted]
  2. 34Coordination Committee
  3. 35Directions of the Central Government
  4. 36Protection of action taken in good faith
  5. 36AMembers, etc., to be public servants
  6. 37Maintenance of branch offices
  7. 38Reciprocity
  8. 38APower of Central Government to make rules
  9. 39Power to make regulations
  10. 40Rules, regulations and notifications to laid before Parliament

Schedules

  • The First Schedule
  • The Second Schedule

About this Act

The Cost Accountants Act, 1959 regulates the profession of cost and works accountants in India. It establishes the Institute of Cost Accountants of India as a statutory body and governs membership, the use of the title cost accountant and the grant of certificates of practice.

The Institute functions through an elected Council and Regional Councils. The Act provides a disciplinary set-up with an Appellate Authority, a Quality Review Board, and penalties for false claims of membership and unauthorised practice.

Chapter VIII dissolves the earlier institute registered under the Companies Act, 1956 and moves its assets, liabilities and employees to the statutory body. The index has ten chapters, from Chapter I to Chapter IX, including Chapter VIIA.

Who it applies to

  • Members of the Institute, both Associates and Fellows
  • Cost accountants in practice and their firms
  • Persons seeking entry to the register of members
  • Companies and unqualified persons, who are restricted from cost accountancy practice
  • Universities and other bodies offering education in the subject

Good to know

Key chapters
Chapter II (the Institute and membership), Chapter III (Council), Chapter V (misconduct and appeals), Chapter VII (penalties) and Chapter VIIA (Quality Review Board).
Earlier name
The Act was earlier titled the Cost and Works Accountants Act, 1959, which explains the wording of its long title.

Frequently asked questions

Which section deals with the certificate of practice for cost accountants?

Section 6, Certificate of practice.

Where is professional or other misconduct defined?

Section 22, in Chapter V.

Which section bars companies from practising cost accountancy?

Section 26, Companies not to engage in cost accountancy.

Where is the Quality Review Board set up?

Section 29A, in Chapter VIIA.

Which section allows appeals against disciplinary orders?

Section 22E, Appeal to Authority; the Authority is constituted under section 22A.