The Institute of Chartered Accountants of India (ICAI) has revised the fee structure for its Expert Advisory Committee (EAC). The changes were announced during the Council’s 420th meeting held on 23rd and 24th March 2023. The new fee structure is applicable to queries related to enterprises whose equity or debt securities are listed or not listed on a recognised stock exchange. In this article, we’ll take a closer look at the revised fee structure and what it means for businesses.
EAC Fee Structure for Listed Enterprises
Enterprises whose equity or debt securities are listed on a recognised stock exchange will be charged fees based on their annual turnover as per the annual accounts of the financial year immediately preceding the date of sending the query. The revised EAC fee structure per query, plus applicable GST or other taxes, shall be as under:
i) Enterprises with an annual turnover exceeding Rs 500 crores: Rs 200,000/-
ii) Enterprises with an annual turnover of Rs 500 crores or less: Rs 100,000/-
EAC Fee Structure for Unlisted Enterprises
For unlisted enterprises (i.e., those whose equity or debt securities are not listed on a recognised stock exchange), a new category has been added. The fees for this category will be based on their annual turnover as per the annual accounts of the financial year immediately preceding the date of sending the query. The revised EAC fee structure per query, plus applicable GST or other taxes, shall be as under:
i) Enterprises with an annual turnover exceeding Rs 500 crores: Rs 200,000/-
ii) Enterprises with an annual turnover of Rs 500 crores or less but more than Rs 100 crores: Rs 100,000/-
iii) Enterprises with an annual turnover of Rs 100 crores or less but more than Rs 50 crores: Rs 50,000/-
iv) Enterprises with an annual turnover of Rs 50 crores or less: Rs 25,000/-
About Expert Advice Committe (EAC) of ICAI
The Institute of Chartered Accountants of India (ICAI) has an Expert Advisory Committee (EAC) that provides advice and recommendations on various technical and professional matters related to accounting, auditing, and other related areas. The committee comprises experts from diverse fields, including chartered accountants, economists, lawyers, and other professionals.
The EAC is responsible for analyzing and reviewing technical issues related to accounting standards, auditing standards, financial reporting, taxation, and other related areas. The committee provides its recommendations and suggestions to the ICAI Council, which is responsible for making the final decision on various technical matters.
The Expert Advisory Committee also provides guidance and support to the ICAI members in various areas of professional practice. It helps to enhance the professional competence of members and provides them with the necessary knowledge and skills to perform their duties effectively.
Overall, the Expert Advisory Committee of ICAI plays a vital role in ensuring that the accounting and auditing profession in India meets the highest standards of professionalism and ethics.
What Does This Mean for Businesses?
The revision in the EAC fee structure means that businesses will be charged fees based on their annual turnover. The new fee structure will make it easier for businesses to determine the cost of seeking advice from the EAC. Unlisted enterprises with an annual turnover of Rs 50 crores or less will benefit from the new category and pay a lower fee of Rs 25,000/- plus GST per query.
Final Thoughts
The ICAI’s revision in the fee structure for the EAC aims to simplify the fee structure and align it with the size and complexity of the business. This move is expected to benefit businesses, especially the ones falling under the newly added category of unlisted enterprises. The revised fee structure is likely to encourage businesses to seek expert advisory services and receive valuable guidance for their growth and development.
The ICAI’s revision of the EAC fee structure is a positive development for businesses seeking advice from the committee. The new fee structure will provide clarity on the cost of seeking advice and make it easier for businesses to budget for the service. The addition of a new category for unlisted enterprises with an annual turnover of Rs 50 crores or less is a welcome change, as it will enable these businesses to seek advice at a lower fee.
ICAI’s Revised EAC Fee Structure for Seeking Expert Opinions (April 2023)