ICAI Clarifications reg. Proprietory Concern/ Sole/ Individual Practice (MEF 2016-17)

ICAI Clarification in respect of Benefit of Seniority and Credit of Exclusiveness of Proprietory Concern/ Sole/ Individual Practice for the purpose of MEF 2016-17

The ICAI has issued a Clarification in respect of Benefit of Seniority and Credit of Exclusiveness in the case of Proprietory Concern/ Sole/ Individual Practice for the purpose of MEF 2016-17, as under:

MEF application process renders the following applications/ applicants ineligible due to the clause of exclusivity:

(i) Applying as “Proprietary Concern” and also having Sole Practice (Individual) registered in Institute’s records;

(ii) Applying as “Individual” (either sole/individual practice registered or not in Institute’s records) and also having Proprietary Concern,

(iii) Applying as Proprietor and having more than one Proprietary Concern but not associated as a Partner/Paid CA in any other Concern.

The guidelines laid down by the Council of the ICAI with regard to benefit of seniority and credit of exclusiveness of such firms are as under:

1. In the case of Member having Proprietary Concern but applied in Sole/Individual capacity in MEF 2016-17 and Sole/ Individual practice is not registered in the Institute records, applicant has to give the consent through an email at [email protected] by 31st October, 2016 to treat his/her application as Proprietary Concern subject to fulfillment of other RBI criteria laid down in this regard.  The benefit of seniority and UCN allotted in his/ her Individual capacity would be given to that Proprietary Concern.

2. The credit of exclusiveness will be given to such Proprietors and Sole/ Individual practitioner only if they continue with only one entity i.e. either Proprietary Concern or Sole/ Individual Practice. Applicant shall close/terminate other entity(ies) (either proprietary concern or sole practice) in ICAI records by 31st October, 2016.  The benefit of seniority of his Individual capacity would also be given to that proprietary concern for MEF purpose.

3. The credit of exclusiveness will be given to Proprietors only if they continue with one Proprietary Concern as far as MEF is concerned.  Applicant may close/ terminate other Proprietary Concern(s) in the Institute’s records by 31st October, 2016.

The applicants falling in 2 & 3 above may apply for such closure/ termination to their concerned Regional Office and upload a scanned copy of the same at MEFICAI website using their credentials.

ICAI Announcement dt. 6 Oct. 2016

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