Sections 6 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.
A member of the Institute cannot practise without a certificate of practice from the Council (section 6). A member in practice must use the designation "cost accountant" (section 7). A person with any of the disabilities in section 8 cannot be on the Register of members at all. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
No member may practise, in India or elsewhere, without a certificate of practice from the Council, applied for in the form and with the annual fee the Council determines by notification, payable on or before 1 April each year. Members in practice must use the designation cost accountant, and no other description may replace it. Section 8 bars entry to, or continued presence on, the Register for persons who are under twenty-one, of unsound mind, insolvent or bankrupt, convicted of listed offences, or removed for misconduct.
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. Sections 44 and 45 of that Act, which amend sections 6 and 8, are in force. Later amendments and notifications should be checked.
Section 6: certificate of practice
Section 6(1). No member of the Institute is entitled to practise, whether in India or elsewhere, unless he has obtained from the Council a certificate of practice. "Practice" is defined in section 2(2); see our article on section 2. The words "whether in India or elsewhere" mean the requirement follows the member abroad.
Section 6(2), as amended in 2022. Every such member must make an application in such form, and pay such annual fee, for his certificate as may be determined, by notification, by the Council. The fee is payable on or before the 1st day of April in each year. Section 44 of the 2022 Act omitted two things: the words "which shall not exceed rupees three thousand", and the first proviso (which let the Council fix a higher fee, not above rupees six thousand, with the prior approval of the Central Government). So the Act now sets no ceiling on the annual fee, and the amount is whatever the Council has notified. The amount itself is not in this series.
The surviving proviso (earlier the second) protects members who were in practice immediately before the commencement of the Act and applied for a certificate within one month of commencement: they are not deemed to have broken section 6(1) by practising between commencement and the disposal of the application. It is a transitional protection of historical interest.
Section 6(3). The Council may cancel a certificate of practice under such circumstances as may be prescribed. The circumstances are in the regulations, and this series does not set them out.
| Sub-section | Rule | Position since 2022 |
|---|---|---|
| 6(1) | No practice without a certificate of practice | Unchanged |
| 6(2) | Application in the form determined, annual fee, due by 1 April | Fee ceiling and first proviso omitted |
| 6(2) proviso | Members practising at commencement who applied within one month | Retained (now "Provided that") |
| 6(3) | Cancellation in prescribed circumstances | Unchanged |
Section 7: members to be known as cost accountants
Every member of the Institute in practice shall, and any other member may, use the designation of a cost accountant. A member using the designation must not use any other description, either in addition or in substitution.
There are two provisos. The section does not stop such a member from:
- adding any other description or letters to his name, if entitled to them, to show membership of another institute of accountancy, in India or elsewhere, recognised by the Council, or any other qualification he possesses; or
- a firm, all the partners of which are members of the Institute and in practice, being known by its firm name as cost accountants.
So a practising member's letterhead may carry "Cost Accountant" together with ACMA or FCMA and an additional qualification, but not a different professional title in its place. A firm may call itself "cost accountants" only where every partner is a member of the Institute in practice. A firm with a partner from another profession, which the definitions allow in some cases, should look at the proviso before choosing its name, and may want to read it with the Council's regulations.
Section 8: disabilities
"Notwithstanding anything contained in section 4", a person is not entitled to have his name entered in, or borne on, the Register of members if he:
| Clause | Disability |
|---|---|
| (i) | Has not attained the age of twenty-one years at the time of his application for entry |
| (ii) | Is of unsound mind and stands so adjudged by a competent court |
| (iii) | Is an undischarged insolvent or undischarged bankrupt (the words "or undischarged bankrupt" were added in 2022) |
| (iiia) | Is declared bankrupt under the Insolvency and Bankruptcy Code, 2016 (inserted in 2022) |
| (iv) | Being a discharged insolvent, has not obtained from the court a certificate that his insolvency was caused by misfortune without any misconduct on his part |
| (v) | Has been convicted by a competent court, whether within or outside India, of an offence involving moral turpitude and punishable with imprisonment, or of an offence, not of a technical nature, committed in his professional capacity, unless he has been granted a pardon or the Central Government, on his application, has by written order removed the disability |
| (vi) | Has been removed from membership of the Institute on being found on inquiry to have been guilty of professional or other misconduct |
A proviso adds that a person removed for a specified period is not entitled to have his name entered until that period ends.
In clause (v), "without India" became "outside India" in 2022, and "Register" became "Register of members" throughout. Because the section speaks of a name being "entered in, or borne on" the Register, a disability arising after entry has the same effect: the name cannot remain. Section 20 deals with removal.
Two short examples
Example 1. Rohan Mehta, an associate, wants to start a costing practice in April. Under section 6(1) he must first obtain a certificate of practice. He applies in the form determined by the Council, pays the notified annual fee and renews it on or before 1 April each year. If he starts without the certificate he is practising in breach of section 6(1).
Example 2. Sunita Joshi is convicted by a court of an offence involving moral turpitude, punishable with imprisonment. Unless she obtains a pardon or the Central Government removes the disability by written order on her application, clause (v) bars her name from the Register.
A member who needs help with a certificate, a designation question or a disability should consider compliance advisory before acting.
The same rule for chartered accountants
See Section 6 of the Chartered Accountants Act, 1949 and Sections 7 and 8. The firm-name proviso here refers to firms of members "in practice" being known as cost accountants.
Need help with your certificate of practice?
If you are starting practice, converting a salaried role into practice, or dealing with a disability or a removal, our compliance advisory team can help you map the steps against sections 6 to 8 and check the regulations that the Act leaves to the Council.
Key takeaways
- A certificate of practice is required to practise in India or elsewhere; the fee is determined by the Council and is due by 1 April.
- Since 10 May 2022 the fee ceiling and first proviso in section 6(2) are omitted.
- Members in practice must use "cost accountant"; a firm may use it only if all partners are members in practice.
- Section 8 bars a person who is under 21, of unsound mind, insolvent or bankrupt, convicted of the listed offences, or removed for misconduct.
- Removal for a specified period keeps the name off the Register until that period ends.
Read next
- Sections 4 and 5: entry in the Register of members
- Sections 19 and 20: Register of members and removal of names
- Section 2: definitions and practice
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.