Cost and Works Accountants (Amendment) Act, 20111
| [Act 10 of 2012, Repealed by Act 23 of 2016*] | [12th January, 2012] |
An Act further to amend the Cost and Works Accountants Act, 1959
Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows-
1. Received the assent of the President on January 12, 2012 and published in the Gazette of India, Extra., Part II, Section 1, dated 13th January, 2012, pp. 1–3, No. 10
* Ed.: Act 10 of 2012 repealed by Act 23 of 2016, S. 2 & Sch. I. See also S. 4 of the Repealing and Amending Act, 2016:
"4. Savings.- The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;
and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;
nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;
nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force."
Prefatory Note-Statement of Objects and Reasons.-The Cost and Works Accountants Act, 1959 has been enacted to make provision for the regulation of the profession of the Cost and Works Accountants. The said Act was amended in 2006 by the Cost and Works Accountants (Amendment) Act, 2006, inter alia, to enable the members of the Institute of Cost and Works Accountants of India to form multi-disciplinary firms and offer multi-professional services in a competitive and commercial manner.
2. Subsequently, the Limited Liability Partnership Act, 2008 has been enacted to make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto. The limited liability partnership will be a separate legal entity, liable to the full extent of its assets, with the liability of the partners being limited to their agreed contribution in the limited liability partnership which may be of tangible or intangible nature or both tangible and intangible in nature.
3. It is proposed to extend the benefits to the Limited Liability Partnership Act, 2008 to the firms of cost and works accountants under the Cost and Works Accountants Act, 1959 and to amend the provisions of that Act.
4. The Cost and Works Accountants (Amendment) Bill, 2010, inter alia, proposes to amend the Cost and Works Accountants Act, 1959 to,-
(i) apply certain provisions of the Limited Liability Partnership Act, 2008 to the Cost and Works Accountants Act, 1959 in order to allow the members of the professional institute governed by the Cost and Works Accountants Act, 1959 to form the limited liability partnership and insert new definitions of "firm", "partner", "partnership" and "sole proprietorship" for the said purpose;
(ii) amend the Cost and Works Accountants Act, 1959 on lines similar with the provisions of the Company Secretaries Act, 1980 so as to allow the professionals of the Institute of Cost and Works Accountants of India to form partnership with members of such other recognised professions;
(iii) change the name of the "Institute of Cost and Works Accountants of India" to the "Institute of Cost and Management Accountants of India" and change the "cost accountants" to "cost and management accountants".
5. The Bill seeks to achieve the above objectives.
1. Short title and commencement.-(1) This Act may be called the Cost and Works Accountants (Amendment) Act, 2011.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. Amendment of Section 2.-In Section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) (hereinafter referred to as the principal Act),-
(i) in sub-section (I),-
(I) after clause (e), the following clause shall be inserted, namely-
‘(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 of the Limited Liability Partnership Act, 2008 (6 of 2009); or
(ii) the sole proprietorship,
registered with the Institute;’;
(II) in clause (f), for the words "Institute of Cost and Works Accountants of India", the words "Institute of Cost Accountants of India" shall be substituted;
(III) after clause (fa), the following clauses, shall be inserted, namely-
‘(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;’;
(IV) after clause (i-a), the following clause shall be inserted, namely-
‘(i-aa) "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);’;
(ii) in sub-section (2),-
(a) after the words "in partnership with one or more members of the Institute in practice", the words "or in partnership with members of such other recognised professions as may be prescribed" shall be inserted;
(b) in clause (i), for the words "cost and works accountancy", the words "cost accountancy" shall be substituted;
(c) in clause (ii), for the words "certification of cost accounting and related statements or holds himself out to the public as a cost accountant in practice", the words "certification or auditing of cost accounting and related statements or holds himself out to the public as a cost accountant in practice" shall be substituted.
3. Amendment of Section 3.-In Section 3 of the principal Act, in sub-section (1), for the words "Institute of Cost and Works Accountants of India", the words "Institute of Cost Accountants of India" shall be substituted.
4. Amendment of Section 5.-In Section 5 of the principal Act,-
(a) in sub-section (2),-
(i) for the letters "AICWA", the letters "ACMA" shall be substituted;
(ii) for the words "Institute of Cost and Works Accountants", the words "Institute of Cost Accountants of India" shall be substituted;
(b) in sub-section (5),-
(i) for the letters "FICWA", the letters "FCMA" shall be substituted;
(ii) for the words "Institute of Cost and Works Accountants", the words "Institute of Cost Accountants of India" shall be substituted;
5. Amendment of Section 22-A.-In Section 22-A of the principal Act, for the words "Institute of Cost and Works Accountants of India", the words "Institute of Cost Accountants of India" shall be substituted.
6. Amendment of Section 25.-In Section 25 of the principal Act, in sub-section (1), in clause (iii), for the words "cost and works accountants", the words "cost accountants" shall be substituted.
7. Amendment of Section 26.-In Section 26 of the principal Act, in sub-section (1), the following Explanation shall be inserted, namely-
‘Explanation.-For the removal of doubts, it is hereby declared that the "company" shall include any limited liability partnership which has company as its partner for the purposes of this section.’.
8. Amendment of First Schedule.-In the First Schedule to the principal Act, in Part I, in item (7), for the words "Institute of Cost Accountants of India", the words "Institute of Cost Accountants of India" shall be substituted.