Pursuant to Section 2 (2) (iv) of the Chartered Accountants Act, 1949, the Council of the Institute of Chartered Accountants of India (ICAI) has decided to include “acting as Insolvency Professional” under Management Consultancy Services. Thus members enrolled as Insolvency Professional under the Insolvency and Bankruptcy Code, 2016 can render services under the said Code either individually or as an entity. Such members may also become a full time director of a company registered as Insolvency Professional Entity in compliance with Council guidelines for Management Consultancy Services.
Charging of fee on percentage basis -
The Council considered the question whether Chartered Accountants who are enrolled as Insolvency Professionals may be allowed to charge fees as a percentage of recovery/ assets for the purpose of Insolvency and Bankruptcy Code, 2016. In this connection the Council noted the provisions of Regulation 192 of the Chartered Accountants Regulations, 1988. The Council pursuant to the authority vested under clause (h) of the said regulation decided that the members of the Institute enrolled as Insolvency professional be allowed to charge fee as a percentage of recovery/assets for the services rendered either individually or as an entity under Insolvency and Bankruptcy Code, 2016 and rules made thereunder.
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