All about articleship training

Chartered Accountants are considered to be finest, extraordinary, talented, ambitious lot of people who are always in demand. The profession/qualification is highlyprestigious and internationally accepted and respected. Studying the course Chartered Accountancy is not only learning and gaining vast knowledge on subjects like accountancy, auditing, costing, laws, taxes etc but it also includes the practical training.

ICAI plans to shape the perfect batch of professionals called Chartered Accountants.So as a part of CA Course apart from passing the three levels of exams i.e. Foundation, Intermediate and Finals every student pursuing CA course is required to undergo 3 yearsarticleshiptraining under a Chartered Accountant. There are a few more requirements like ITT training, GMCS training etc as a part of CA course as a whole.

Under the Present Scheme of Education & Training three years of articleship training has been designed to strike a balance between theoretical education and practical training.Such practical training/articleship will inculcate a disciplined attitude for hard work, will develop necessary skills in applying theoretical knowledge to practical situations, will provide exposure to overall socio-economic environment in which organizations operate and will develop ethical values.

Out of these 3 years ofpractical training, it is mandatory that first 2 years are served under a Chartered Accountant in practice. And for the 3^rd year (last year) of training, it is the choice of CA student to either continue his training under a chartered accountant in practice or go for industrial training (training under a chartered accountant in employment).

Frequently asked Questions about articleship

Question: When can a CA student start his articleship

Answer: On completion of all the below mentioned conditions a CA student can start his articleship

• After clearing 1st Group or both Groups of CA Intermediate(IPC).
• After completion of 100 hours of ITT training.
• After completion of 90 hours of Orientation Course.

Question: What is the procedure for registration of articleship

Answer:

• Firstly, a student who intends to go for articleship training needs to find aCA Firm with vacancy for article trainees. ICAI has fixed the maximum limit onCAs for training articles varying from 1 to 10 (per CA not CA firm) depending upon the number of years in continuouspractice.
• After a CA student finds a CA firm where there is a vacancy to train articles and the Principal(Chartered Accountant) agrees to train and register for articleship under firm’s name then the CA student needs to inform ICAI about the same.
• A student needs to intimate about his /her articleship to ICAI within 30 days from the date of commencement of articleshipin the prescribed form 102 & prescribed form 103.
• These forms 102 & 103 can be either purchased from ICAI branches by paying Rs. 50/- or can be downloaded from the ICAI website (If forms are downloaded online, then one needs to pay Rs. 50/- additional with articleship registration fees for these forms).
• After executing the deed of articles in form 102 & particulars of registration in form 103. A copy of form 103 with relevant documents mentioned below needs to be sent to ICAI for registration.
• Along with the above form 103 a student also needs to send an attested copy of CA Intermediate (IPC) marksheet, an attested copy of Secondary/ Higher School Certificate as proof of Date of Birth, an attested copy of completion ofITT training &Orientation Program and a demand draft of requisite fees.

Question: What is the time limit for registration of articleship

Answer: A student is required tosubmit the CA Articleship Registration form with relevant documents within 30 days from the date of commencement of Articleship to ICAI.
If due to any valid reason, a student was unable to submit the above form within the time prescribed then it should be accompanied by a hand written application stating the reasons for delay and a late fee based on number of days it has been delayed. Such application is called “condonation of delay” and it should be signed by both the Articled assistant(student) and Principal (CA).

• If period of delay is less than 30 days then the late fee will be Rs. 100/-.
• If period of delay is between 30 to 180 days then the late fee will be Rs. 300/-.
• If theperiod of delay is more than 180 days then the late fees will be Rs. 1,000/-.

Question:How much is the articleship registration fees and when it is to be paid

Answer:

• Articleship registration fees is Rs. 2000/- .
• This fees needs to be paid by way of demand draft/bankers cheque payable to the “Secretary, The Institute of Chartered Accountants of India” payable at Mumbai/Kolkatta/ Chennai/ Kanpur/ New Delhi as the case may be.
• It is to be paid at the time of registration of articleship but if it was paid while Intermediate(IPC) registration then need not be paid again.

Question:What is form 102

Answer :Articleship Registration Form 102: Deed of Articles

1. The deed of articles should be executed on a Non-Judicial Stamp Paper or Special Adhesive Stamps of the requisite value should be affixed.
2. The deed of articles should be executed for full period of 3 years. A deed showing lesser period will not be accepted.
3. The deed of articles should be executed in printed Form in duplicate and signed both by the articled assistant and the chartered accountant concerned.
4. The original deed should be retained by the Chartered Accountant and duplicate copy thereof should be given to the articled assistant.
5. The deed of articles is not required to be submitted to ICAI for registration.

Question:What is form 103

Answer : Articleship Registration Form 103: Statement of Particulars

Articleship Registration Form 103 is required to be submitted in triplicate one copy to be submitted to ICAI, one copy each to be retained by the CA and the article. Form 103 should be signed by both the CA as well as the Article Assistant.

The copy of the articleship registration form should be submitted to ICAI along with:-

1. Attested copy of mark-sheet of Intermediate(IPC) Exams
2. Attested copy of Secondary/ Higher School Certificate as proof of Date of Birth
3. Requisite Fees by way of Demand Draft i.e. Rs. (Rs. 50 extra in case the Forms were downloaded online)
4. Attested Copy of completion ofITT&Orientation Program.

Question:What is Information Technology Training (ITT) program

Answer : The course develops an understanding for use of Information Technology in the field of accounting and auditing and uniform theoretical and practical knowledge to all the aspiring CA students. The training components of the course focus on use of Application Software relevant for Accounting, Auditing and allied areas related to the CA profession. The training would focus on knowledge of Electronic Spread Sheet, Data Base Management System, Computer Assisted Audit Technique (CAAT) and Accounting Package etc.
The highlights of the ICITSS – Course on Information Technology are as follows:

• The classes are scheduled for minimum 6 hour per day in 15 working days.
• A student is required to have minimum 90% attendance to successfully complete the Course on Information Technology (ICITSS).
• The fee shall be Rs. 6500 (Six Thousand Five Hundred only) per student on nonresidential basis, inclusive of course material and tea/refreshment.
• The accredited ITT center issues certificate to students who attended 90% classes and successfully completed the Course on Information Technology (ICITSS)

Question:What is Orientation program

Answer : The Orientation Course aims to equip the entrants of the profession –

• To familiarize with various dimensions of the Indian Accountancy Profession.
• To develop effective communication and presentation skills.
• To groom and motivate the entrants to be knowledgeable and skilled professionals.
• To expand the significance of practical training in the life of a professional.
• To foster values such as integrity, transparency and Independence in the budding professionals.

Question: What are the official working hours of articleship

Answer :Details of official working hours are as under

• The office hours should not begin before 9:00 AM or end after 7:00 PM (Note : It should not start after 11:00 AM or end before 5:00 PM).
• Generally the working hours for thearticle assistant are35 hours per week which does not include the time of lunch break.(Note :In case of excess work, the article trainee may have to work for excess hours but that should not exceed45 hours per week in aggregate number).
• There is no facility of flexible working hours for article trainee.
• Only in exceptionalcircumstances not in routine practice,working beyond 35 hours per week is allowed that too shall not exceed45 hours per week in aggregate number. Moreover,the article assistant shall be entitled to compensatory leaves calculated with reference to the number of completed working hours, over and above 35 working hours.

Question: What is the procedure for taking transfer of articleship

Answer :

• If transfer is in 1st year, then there is no requirement of prior permission of ICAI.
• But if the transfer is in 2nd or 3rd year then prior permission from ICAI is to be taken.
• So article trainee should submit Articleship TransferForm 109 duly signed by the CA wherein he is doing his articleship.
• It must be noted that request for transfer of articleshipwithout the consent and sign of the CA will not be accepted by ICAI.
• Once Form 109 has been submitted, then should leave the existing firm.
• After joining the new CA firmwhere a CA student intends to do articleshipa fresh form 102 & form 103 for registration be submitted to ICAI.
• There is no additional fee to be paid for articleship transfer except the cost for purchasing the Forms.
• In case of dispute between principal and articled assistant, the matter be settled amicably among the articled assistant and the principal concerned and the Institute shall not interfere in such cases.

Question: What are the rules relating to transfer in the 1st year of articleship

Answer :

• There is no restriction on an article trainee in the 1st year of articleship for taking transfer from one principal to other.
• Articleship transfer form 109 is directly to be submitted to ICAI.
• There is no requirement of prior permission from ICAI if transfer is taken in 1st year of articleship.
• An article trainee can take as many transfers as he wants as there is no maximum number limit stated by ICAI for transfer in 1st year.

Question: What are the rules relating to transfer in the 2nd & 3rd year of articleship

Answer:

• Prior permission of ICAI is needed if an article trainee intends to take transfer in 2nd & 3rd year of articleship. (Note: prior permission is not needed if transfer is taken is 1st year)
• The article trainee has to make a request on a plain paperwith recommendations of the existing CA wherein he is doing his articleship for transfer of articleship along with evidence/proof (self-attested by the article assistant). (Note: If transfer is taken for industrial training then prior permission of ICAI is not to be taken.)
• If prior permission is not taken from ICAI, then form 109 will not be taken on record by ICAI.

• Once formal approval from ICAI is obtained, article trainee can submit form 109 for transfer of articleship.
• Even in the 2^ndand the 3^rdyear of training, transfer from one principal to other is allowed only on following circumstances :-
  • Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).
  • Transfer of a working parent to another city involving a distance of minimum 50 kms (on production of a certified copy of the transfer order and the proof of relocation to another City).
  • Misconduct involving moral turpitude.
  • Marriage basis (only if there is relocation to another city involving distance of 50 kms).
  • Irregular payment or non payment of stipend with reference to Regulation 67.
  • Articled assistant desires to serve balance period of training outside India.
  • Shifting by the Principal to another city involving distance more than 50 kms.
  • Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proof of the act warranting transfer/termination of articleship):
    • Industrial Training (Regulation 51) {prior permission of ICAI is not needed}
    • Secondment of articles (Regulation 54)
    • Death of Principal [Regulation 57(1)(c)]
    • Ceasing of practice by the Principal [Regulation 57(1)(a)]
    • Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)(b)]

Question: Can one register for CA final along with articleship

Answer: Answer to the above question is partially yes and partially no. If one is registering for articleship on clearing both the groups of CA Intermediate(IPC) then yes you can register for CA final as well. But if you are registering for articleship on clearing only 1st group then registration for CA final is not possible until you also clear 2nd group of CA Intermediate(IPC). Registration form for CA Final.

Question : Can a CA student pursue any other course along with articleship

Answer : Yes, a CA student is allowed to pursue one more course along with CA course on prior permission of ICAI during the period of articleship provided the classes or timings of the additional course does not overlap with the timings of articleship. Form 112 is to be submitted to ICAI for the same.

Compiled by CA Ankita Khetan

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You may also like :

• Download Articleship Registration Form 102: Deed of Articles
• Download Articleship Registration Form 103: Statement of particulars
• Download form for 100 hours of Information Technology Training (ITT) program
• Download CA final registration form
• Download form 112 for pursuing additional course during articleship
• Download form 109 for transfer of articleship
• DownloadIndustrial Training form 104: Apprenticeship Deed for Industrial Training