The Cost Accountants Act, 1959

(1) This Act may be called the Cost and Works Accountants Act, 1959. (2) It extends to the whole of India 1****; (3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.

(1) In this Act, unless the context otherwise requires,-- (a) "associate" means an associate member of the Institute; 1[(aa) "Authority" means the Appellate Authority referred to in section 22A; (aaa) "Board" means the Quality Review Board constituted under section 29A]; 2[(ab) Board of Discipline" means the Board of Discipline constituted under sub-section (1) of section 21A; (ac) "Companies Act" means the Companies Act, 2013 (18 of 2013) or any other previous company law as defined in clause (67) of section 2 of the said Act;] (b) cost accountant means a person who is a member of the Institute; (c) Council means the Council of the Institute 2[constituted under section 9]; 2[(ca) "Director (Discipline)" means the Director (Discipline) referred to in section 21 and includes Joint Director (Discipline); (cb)"Disciplinary Committee"means the Disciplinary Committee constituted undersub-section (1) of section 21B; (cc) "Disciplinary Directorate" means the Disciplinary Directorate established undersub-section (1) of section 21;] (d) "dissolved" company means the Institute of Cost and Works Accountants registered under the Companies Act, 3****; 4[(e) "fellow" means a fellow member of the Institute]; 5[(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 ofthe Limited Liability Partnership Act, 2008 (6 of 2009); or (ii) the sole proprietorship, registered with the Institute;] (f) "Institute" means the 6[Institute of Cost Accountants of India] constituted under this Act; 7[(fa) "notification" means a notification published in the Official Gazette and the term notify shall be construed accordingly;] 8[(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; 9[(i) "Register" means the Register of members of the Institute maintained under section 19 orRegister of firms of the Institute maintained under section 20B, as the case may be;] ; 10[(ia) "specified" means specified by rules made by the Central Government under this Act; 8[(iaa) sole proprietorship means an individual who engages himself in the practice of cost accountancy or offers to perform services referred to in clauses (ii) to (iv) of sub-section (2);] 2[(iaaa) "Standing Committee" means a Standing Committee constituted under sub-section (1) of section 17;] (ib) "Tribunal" means a Tribunal established under sub-section (1) of section 10B;] (j) "Vice-President" means the Vice-President of the Council; (k) "year" means the period commencing on the 1st day of April of any year and ending on the 31st day of March of the succeeding year. (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, 8[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 11[cost accountancy]; or (ii) offers to perform or performs services involving the costing or pricing of goods or services or the preparation, verification or 12[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.

(1) All persons whose names are entered in the Register at thecommencement of this Act and all persons who may hereafter have their names entered in the Register under the provisions of this Act, so long as they continue to have their names borne on the said Register, are hereby constituted a body corporate by the name of the 1[Institute of Cost Accountants of India], and all such persons shall be known as members of the Institute. (2) The Institute shall have perpetual succession and a common seal, and shall have power to acquire, hold and dispose of property, both movable and immovable, and shall by its name sue or be sued.

(1) Any of the following persons shall be entitled to have his name entered in the 1[Register of members], namely:-- (i) any person who was an associate or a fellow of the dissolved company (other than an honorary associate or honorary fellow thereof) immediately before the commencement of this Act, except any such person who is not a permanent resident of India and is not at such commencement practicing as a cost accountant in India; (ii) any person who has passed such examination and completed such training as may be prescribed for members of the Institute; (iii) any person who, at the commencement of this Act, is engaged in the practice of cost accountancy in India and who fulfills such conditions as the Central Government or the Council may specify in this behalf; (iv) any person who has passed such other examination and completed such other training 2[outside India] as is recognised by the Central Government or the Council as being equivalent to the examination and training prescribed for members of the Institute: Provided that in the case of any person who is not permanently residing in India, the Central Government or the Council may impose such further conditions as it may deem fit; (v) any person domiciled in India, who at the commencement of this Act is studying for any foreign examination and is at the same time undergoing training, whether within or 2[outside India], or, who, having passed such examination, is at such commencement undergoing training whether within or 2[outside India]: Provided that such foreign examination and training are recognised by the Central Government or the Council in this behalf: Provided further that the person passes the examination and completes his training within five years from the commencement of this Act. (2) Every person belonging to the class mentioned in clause (i) of sub-section (1) shall have his name entered in the 1[Register of members] without the payment of any entrance fee. 3[(3) Every person belonging to any of the classes mentioned in clauses (ii), (iii), (iv) and (v) of sub-section (1) shall have his name entered in the 1[Register of members] on an application being made and granted in the prescribed manner and on payment of such fees, as may be determined, by notification, by the Council 4***: 5*****] (4) The Central Government shall take such steps as may be necessary for the purpose of having the names of all persons belonging to the class mentioned in clause (i) of sub-section (1) entered in the 1[Register of members] at the commencement of this Act.

(1) The members of the Institute shall be divided into two classes designated respectively as associates and fellows. (2) Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the 1[Register of members], be deemed to have become an associate member of the Institute and so long as his name remains so entered, shall be entitled to use the letters 2[ACMA] after his name to indicate that he is an associate member of the 3[Institute of Cost Accountants of India]. (3) Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the 1[Register of members] under clause (i) of sub-section (1) of section 4, shall be entered in the 1[Register of members]as a fellow of the Institute. 4[(4) A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of this Act, or whether partly before and partly after the commencement of this Act, and a member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a cost accountant shall, on payment of such fees, as may be determined, by notification, by the Council, 5***, and on application made and granted in the prescribed manner, be entered in the Register as a fellow of the Institute 6*****. Explanation I.--For the purposes of this sub-section, a person shall be deemed to have practiced in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practice during that period. Explanation II.--In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which the person has been an associate of the dissolved company immediately before he became an associate of the Institute.] (5) Any person whose name is entered in the1[Register of members] as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letters 7[FCMA] after his name to indicate that he is a fellow of the 3[Institute of Cost Accountants of India].