First Schedule explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Items (5) to (7) of Part I of the First Schedule are the Act's rules on finding work. A chartered accountant in practice may not secure work through persons who are not his employees or partners, may not solicit clients or work, and may not advertise his attainments or services, with provisos for tenders and for a write-up under Council guidelines. This article follows the text as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022).
A chartered accountant in practice is guilty of professional misconduct if he secures professional business through a person who is not his employee or partner, solicits clients or work, or advertises his professional attainments or services or uses a designation other than chartered accountant on his documents. The provisos allow requests to other chartered accountants, responses to tenders and enquiries, and a write-up subject to Council guidelines. The matters go to the Board of Discipline under section 21(3) as in force.
Where items (5) to (7) fit
Part I of the First Schedule lists the misconduct of members in practice. Items (1) to (4) deal with who may practise in a member's name and with whom fees and partnerships are shared; see our article on items (1) to (4). Items (5) to (7) deal with how work is obtained and how a practice presents itself.
If you manage a practice's marketing, referral arrangements or tender responses, your routines should be checked against these items. Our compliance advisory team can help you review how your practice finds and presents work.
Commencement. The First Schedule heading in the 2022 edition refers to sections 21(6), 21A(5) and (6) and 21B(5) and (6); per S.O. 2184(E) dated 10 May 2022 that change is not yet in force, and the reference in force is "21(3), 21A(3)". Items (5) to (7) are in force as printed. A later commencement notification should be checked.
Item (5): securing business through the wrong channel
A member is guilty if he secures, either through the services of a person who is not an employee of such chartered accountant or who is not his partner, or by means which are not open to a chartered accountant, any professional business.
Two limbs: (a) the person who brings the business must be an employee or a partner; (b) the means must be open to a chartered accountant. The second limb links to item (6), which closes soliciting and advertising.
Proviso. Nothing in the item prohibits any arrangement permitted in terms of items (2), (3) and (4) of Part I. So a fee-sharing arrangement within the circle of item (2), a profit-sharing arrangement under item (3) or a partnership within item (4) is not caught by item (5).
Item (6): soliciting clients
A member is guilty if he solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means.
The words "directly or indirectly" and "or by any other means" are wide. The four named methods are examples, not a closed list.
Proviso. Nothing in the item prevents or prohibits:
- any chartered accountant from applying or requesting for, or inviting or securing professional work from, another chartered accountant in practice; or
- a member from responding to tenders or enquiries issued by various users of professional services or organisations from time to time, and securing professional work as a consequence.
So two channels are open: work from fellow practitioners, and responses to tenders and enquiries. The proviso covers responding; the text does not extend to unsolicited approaches.
Item (7): advertising
A member is guilty if he advertises his professional attainments or services, or uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless the designation is:
- a degree of a University established by law in India or recognised by the Central Government; or
- a title indicating membership of the Institute of Chartered Accountants of India, or of any other institution that has been recognised by the Central Government or may be recognised by the Council.
Proviso. A member in practice may advertise through a write-up setting out the services provided by him or his firm and particulars of his firm, subject to such guidelines as may be issued by the Council.
The edition's footnote points to the Council's guidelines in Appendix No. (33). The Appendix is ICAI's compilation printed beside the Act; it is not part of the Act, and this article states nothing from it. Our post on ICAI advertisement guidelines for write-ups and websites explains the guidelines on their own terms.
Reading the three items together
| Item | The rule | The proviso |
|---|---|---|
| (5) | No business through a non-employee, non-partner or through means not open to a chartered accountant | Arrangements permitted by items (2), (3) and (4) |
| (6) | No soliciting of clients or work, directly or indirectly, by any means | Requests to another chartered accountant in practice; responding to tenders and enquiries |
| (7) | No advertising of attainments or services; no designation other than chartered accountant, apart from degrees and recognised memberships | A write-up on the services and firm particulars, subject to Council guidelines |
False information and Part III
Part III of the First Schedule, which applies to members generally, contains item (3): a member is guilty of professional misconduct if, while inviting professional work from another chartered accountant, responding to tenders or enquiries, advertising through a write-up, or doing anything provided for in items (6) and (7) of Part I, he gives information knowing it to be false. Our article on Parts II to IV explains Part III. The point is that the provisos are not a licence for exaggeration.
Related items with their own posts
Item (8), on accepting an audit previously held by another chartered accountant without first communicating with him, is explained in our post on communicating with the outgoing auditor. Items (10) and (11) are explained in our posts on contingent fees and engaging in another occupation.
A worked example
CA Meera Iyer receives a tender enquiry from a hospital for internal audit services and submits a proposal. That is within the tender proviso to item (6). Separately, she emails a circular to the small businesses in her city, offering tax services at a stated rate. That is soliciting by circular, which item (6) names, and the circular is not a response to a tender or an enquiry. Her website write-up listing her services and firm particulars is within the item (7) proviso only if it follows the Council's guidelines.
Need help reviewing your marketing and referral routine?
How a practice describes itself and receives work is checked against these items in a complaint. Our compliance advisory team can review your website write-up, proposal formats and referral arrangements against the text above.
Key takeaways
- Item (5): do not secure business through non-employees, non-partners or means not open to a chartered accountant; arrangements under items (2) to (4) are excepted.
- Item (6): no soliciting by any means, directly or indirectly; requests to fellow practitioners and tender or enquiry responses are allowed.
- Item (7): no advertising or extra designations, except degrees, recognised memberships and a write-up under Council guidelines.
- Part III, item (3): false information in these channels is a separate misconduct.
Read next
- First Schedule Part I, items (1) to (4): practising in one's name, sharing fees and partnerships
- First Schedule Parts II to IV: members in service, members generally and other misconduct
- ICAI advertisement guidelines: write-up and website
- ICAI Code of Ethics 2026: thirteenth edition overview
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.