ICAI Issues New Tender Guidelines for Practising CAs to Prevent Unfair Fee Competition:

The Council of the Institute of Chartered Accountants of India (ICAI), in exercise of its powers granted under Section 15(2)(fa) of the Chartered Accountants Act, 1949, has issued certain guidelines dated October 12, 2026, titled "The Guidelines for Members in Practice for Responding to the Tenders Issued by Various Organisations for Availing Professional Services", effective from the date of publication of the guidelines, i.e., from October 12, 2026.

The guidelines have restricted practising Chartered Accountants from participating in certain tenders that do not specify minimum professional fees. According to the guidelines, practising CAs are not allowed to respond to tenders for professional services exclusively reserved for CAs under any statute unless the tender document specifies minimum fees.

Where such minimum fees are prescribed, the fees quoted by the member must not be lower than the specified amount. The guidelines aim to prevent unhealthy competition through excessively low fee quotations.

The ICAI has also cautioned that fees quoted by practising members should not be extremely low, no matter if the services are exclusively reserved for Chartered Accountants (CAs). Further, it has specified that the quoted fees should be reasonable and proportionate to the size, value and volume of work, manpower requirements and nature of the assignment.

Further, members responding to tenders must maintain a cost sheet detailing the estimated expenses involved in completing the assignment, including the number of personnel required and the hours expected to be spent. The Institute may ask members to submit these documents relating to any tender bid.

The guidelines define minimum fees to include estimated fees, professional fees, average fees or any similar amount specified in the tender document. However, members may participate in tenders for services not exclusively reserved for Chartered Accountants, regardless of whether minimum fees are prescribed or whether the tender is open only to CAs.

These guidelines do not apply to quotations sought from practising members or firms through individual letters. Additionally, participating in reverse bidding below the prescribed minimum fee is prohibited. The new guidelines must be read alongside ICAI's earlier Guideline No. 1-CA(7)/03/2016 dated April 7, 2016.