Rules of Transfer/Termination of Articleship

Transfer/Termination of Articleship [Regulation 56(1)]

The transfer/termination of articleship in terms of Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be permissible on the grounds as stated below: –

I. Transfer /termination of articles is permitted without any restriction during the first year of articles.

II. During rest of the articleship period on satisfying any one or more of the conditions as stated below: –

1. Medical grounds requiring discontinuance of articles for a minimum period of three months: on
production of a Medical Certificate issued by a Government Hospital).

2. Transfer of parent(s) to another city.

3. Misconduct involving moral turpitude.

4. Other justifiable circumstances / reasons:-

(i) Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of
requisite proof of the act warranting transfer/termination of articleship):-

a. Industrial Training (Regulation 51)

b. Secondment of articles (Regulation 54)

c. Conversion from PCC to IPCC (for termination of articles only. Re-registration articles to be allowed
only after passing Group-I of IPCC)

d. Death of Principal [Regulation 57(1)(c)]

e. Ceasing of practice by the Principal [Regulation 57(1) (a)]

f. Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(1)

(ii) Marriage basis (only if there is relocation to another city involving distance of 50 kms.

(iii) Irregular payment or nonpayment of stipend with reference to Regulation 67.

(iv) Articled assistant desires to serve balance period of training outside India,

(v) Shifting by the Principal to another city involving distance more than 50 kms.

The articled assistants are required to get the consent of the Institute before getting Form 109 signed by the Principal in their own interest.

The request, on any one or more of the aforesaid grounds, of an articled assistant on a plain paper along with the recommendation/consent of the Principal for transfer/termination of articleship accompanied by evidence/proof (selfattested by the articled assistant) to the satisfaction of the Institute be made. Request for transfer not accompanied by consent of Principal shall not be accepted.

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.
While registering the articled service under another chartered accountant in practice for the balance period of training, the formalities would broadly be the same as set out in paragraph 2 and 3 above except for the following.

(a) No registration fee is necessary for re-registration of articles.

(b) The particulars in Form” 103″ for registration under the new employer should be accompanied by a
service certificate from the previous employer for the training already served, in Form “109” or Form
“120” as the case may be along with Report of Practical Training undergone in the format prescribed
on the reverse of form 109 or Form 120 as the case may be.

(c) The Identity Card issued under the previous employer.

(d) The period of training in the deed of articles with the new employer must be the full balance period of
training required to be undergone under the Chartered Accountants Regulations.

Important Registration Forms in Articleship Training

Deed of Articles and Registration Form (Form 102 and Form 103)
For use where articles are assigned
Deed of Supplementary Articles
Service Certificate for Articleship
Termination of Articled Service
i.        by mutual consent
ii.        in the case of death of employee
(a)  to be issued by the legal representative
(b)  by a surviving partner
Application for permission to study other course / engagement in business
Particulars of the Audit Assistant to be submitted for registration
Service Certificate of audit service in the case of death of employer
(a) To be issued by the legal representative
(b) by a surviving partner
Form for intimation of change of status of Principal.
Form for request by the Articled Assistant to his Principal for issuance of Service Certificate in event of Completion of articles
Form for intimation of Secondment of articles

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