ICAI Bars CAs from Bidding on Reserved Services Without Minimum Fees

ICAI Imposes Fee Floor for Reserved Services in Tenders

The Institute of Chartered Accountants of India (ICAI) has issued binding guidelines prohibiting its members from participating in tenders for professional services designated as 'reserved' unless the tender specifies a minimum fee. The move aims to prevent undercutting and preserve professional independence.

Under the new rules, 'reserved services' — including statutory audits, cost audits, and tax attestation — require adherence to the ICAI’s prescribed minimum fee structure. The Institute clarified that

"responding to tenders for reserved services without defined minimum fees compromises professional standards and constitutes professional misconduct"

under Clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949.

This directive has immediate implications for public and private sector procurement processes. Legal teams drafting tender documents involving audit or assurance services must now ensure compliance with ICAI’s fee norms to enable participation by qualified CAs without risk of disciplinary action.