Referal Fee's

Auditing

Ma'am is my understanding is correct for the following example For suppose Mr.A is a CA in practice and a person who is Mr.B who is working as Filing of GST returns and is not CA and he has referred Mr.C to Mr.A for some Income tax dispute purpose and Mr.B asked to pay the Referral fee out of the fee received from Mr.C. Now this payment will be guilty of professional misconduct as he paid to other than persons mentioned in clause 2. [Video Time Stamp: 00:00] Video Details ------------- Advanced Auditing & Professional Ethics (Without SA) Professional Ethics #50. Clause 3 - Cannot take share

K Vamshi

CA Final

★ 14K+

10-Sep-25 16:30

197

Answers (2)

This is not allowed, because under Clause (2), Mr. A can only share fees with: • Another CA (in practice), • His partner, • Retired partner, or • Legal representative of a deceased partner. Since Mr. B is not covered in the permitted list, Mr. A would be held guilty of professional misconduct.

Pradnya Bajaj

Faculty

13-Sep-25 09:16

Okay Ma'am. Thank you.

Thread Starter

K Vamshi

CA Final

★ 14K+

13-Sep-25 09:43