Sections 1 and 3 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.
Section 1 gives the Act its name, says where it applies and when it began. Section 3 makes every person on the Register of members a part of one body corporate, the Institute of Cost Accountants of India. Until 10 May 2022 the statute was called the Cost and Works Accountants Act, 1959.
The Act is now the Cost Accountants Act, 1959 (Act 23 of 1959). It extends to the whole of India and came into force on the date the Central Government appointed by notification; the printed text records 23-5-1959. Section 3 makes all persons on the Register of members a body corporate called the Institute of Cost Accountants of India, with perpetual succession, a common seal, and the power to hold property and to sue and be sued. The name change and the new long title were made by Act 12 of 2022 and are in force from 10 May 2022.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. The full name of that 2022 Act is the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022. It is only partly in force, so each article in this series says which provisions of it are in force and which are not. Later amendments and notifications should be checked before you rely on any provision.
The long title
The long title of the Act, as printed, says it is an Act "to make provision for the regulation of the profession of cost and works accountants". Section 38 of the 2022 Act replaced those words with "regulation and development of the profession of cost accountants". That change is in force from 10 May 2022. The word "development" signals that the Institute's role is not only to regulate the profession but also to develop it.
Section 1: short title, extent and commencement
Section 1(1): the name. The printed text says "This Act may be called the Cost and Works Accountants Act, 1959". Section 39 of the 2022 Act substituted "Cost Accountants" for "Cost and Works Accountants", so the short title is now the Cost Accountants Act, 1959. Section 41 of the 2022 Act also dropped the words "AND WORKS" from the heading of Chapter II. Both changes are in force from 10 May 2022. Older documents, agreements and engagement letters that still say "Cost and Works Accountants Act, 1959" refer to the same statute.
Section 1(2): extent. The Act extends to the whole of India. There is no carve-out for any State or Union territory.
Section 1(3): commencement. The Act came into force on a date the Central Government appointed by notification in the Official Gazette. The printed text marks that date as 23-5-1959 in a footnote. For a practising member today this is history, but it explains why several transitional references to "the commencement of this Act" appear in sections 4 and 5.
| Provision | What it says | Position after 2022 |
|---|---|---|
| Long title | Regulation of the profession of cost and works accountants | "regulation and development of the profession of cost accountants" (in force) |
| Section 1(1) | Short title | Cost Accountants Act, 1959 (in force from 10 May 2022) |
| Section 1(2) | Extent | Whole of India |
| Section 1(3) | Commencement | Date appointed by the Central Government (printed as 23-5-1959) |
| Section 3(1) | Body corporate | Institute of Cost Accountants of India |
| Section 3(2) | Powers of the body corporate | Perpetual succession, common seal, property, suing and being sued |
Section 3: incorporation of the Institute
Section 3(1). Two groups of people are constituted into a body corporate: all persons whose names were entered in the Register at the commencement of the Act, and all persons who later have their names entered in the Register under the Act. The condition is that they continue to have their names borne on the Register. The body corporate carries the name "Institute of Cost Accountants of India", and all such persons are known as members of the Institute.
Two points follow from this wording. First, membership is tied to the Register. A person who is removed from the Register stops being a member of the body corporate while the removal lasts. Second, the Institute is not a separate group of officials with members outside it: the members themselves are the Institute. How names go on and off the Register is explained in our article on sections 4 and 5.
The 2011 Amendment Act, with effect from 1-2-2012, substituted "Institute of Cost Accountants of India" for the older "Institute of Cost and Works Accountants". The Act has therefore used the present name of the Institute since 1 February 2012, a decade before the Act itself was renamed.
Section 3(2). The Institute has:
- perpetual succession, so it continues regardless of changes in its membership;
- a common seal;
- power to acquire, hold and dispose of property, movable and immovable; and
- the ability to sue or be sued by its name.
In practice, contracts, leases and legal proceedings are in the Institute's own name.
A map of the Act
Knowing the layout helps when you look for a provision. The Act has 59 section numbers (1 to 40, plus lettered sections such as 10A and 29A) in nine Chapters, with Chapter VIIA, and two Schedules.
| Part | Sections | Subject |
|---|---|---|
| Chapter I | 1 and 2 | Preliminary: short title and definitions |
| Chapter II | 3 to 8 | The Institute, the Register, fellows and associates, certificate of practice, disabilities |
| Chapter III | 9 to 18 | Council of the Institute, elections, functions, officers, finances |
| Chapter IV | 19 and 20 | Register of members, removal of names |
| Chapter V | 21 to 22E | Misconduct: Disciplinary Directorate, Board of Discipline, Disciplinary Committee, Appellate Authority |
| Chapter VI | 23 | Regional Councils |
| Chapter VII | 24 to 29 | Penalties and offences |
| Chapter VIIA | 29A to 29D | Quality Review Board |
| Chapter VIII | 30 to 32 | The company that preceded the Institute |
| Chapter IX | 33 to 40 | Miscellaneous, including regulations |
| Schedules | First and Second | Professional and other misconduct |
Section 33 is printed as omitted. The 2022 Act also inserted a Chapter IVA (sections 20A to 20D) on registration of firms, but the commencement notification left it out, so it is enacted but not yet in force. Our article on sections 20A to 20D explains it separately.
Why the name matters in practice
Old engagement letters and websites may still say "Cost and Works Accountants Act, 1959". When you cite the Act, use the present title and, if you wish, add "formerly the Cost and Works Accountants Act, 1959". The substance of the sections did not change merely because the name did; where the 2022 Act altered substance, each article in this series says so.
A firm of cost accountants that is unsure how the Act's name and structure affect its engagement terms, internal manuals or website text can take legal consultation on how to cite and apply the Act correctly.
The same rule for chartered accountants
The chartered accountants' statute has parallel opening provisions, explained in Sections 1 to 3 of the Chartered Accountants Act, 1949. The main difference is the name of the body (the Institute of Cost Accountants of India here) and the 2022 renaming that applies to this Act's short title.
Need help with the Cost Accountants Act?
If your firm, practice or company needs to read the Act correctly for a notice, an engagement or a compliance question, a short legal consultation can set out which provisions apply and where later notifications need to be checked.
Key takeaways
- The Act is now the Cost Accountants Act, 1959; until 10 May 2022 it was the Cost and Works Accountants Act, 1959.
- It extends to the whole of India and began on a date appointed by the Central Government.
- Section 3 makes all persons on the Register of members a body corporate, the Institute of Cost Accountants of India.
- The Institute has perpetual succession, a common seal and the power to hold property and to sue and be sued.
- The long title now speaks of the "regulation and development" of the profession.
Read next
- Section 2: definitions and when a cost accountant is deemed to be in practice
- Sections 4 and 5: Register of members, fellows and associates
- Sections 20A to 20D: registration and Register of firms
- Section 148 of the Companies Act, 2013: cost audit
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.