REF: CHARTERED-ACCOUNTANT-ENGAGEMENT-LETTER CHARTERED ACCOUNTANT ENGAGEMENT LETTER
(Issued in accordance with ICAI Standards on Auditing SA 210 and Code of Ethics)
Date: [Date of Engagement Letter]
To:
[Client / Entity Full Name]
Address: [Client Registered / Office Address]
GSTIN / ID: [Client GSTIN / Identification]
From:
[Chartered Accountant Name], Chartered Accountant
Firm: [CA Firm Name]
ICAI Membership / FRN: [ICAI Membership / Firm Reg. No.]
Chamber Address: [CA Chamber / Office Address]
Dear Sir / Madam,
RE: ENGAGEMENT FOR PROFESSIONAL SERVICES FOR FINANCIAL YEAR [Applicable Financial Year]
We are pleased to confirm our acceptance and our understanding of the terms and objectives of our professional engagement as your Chartered Accountants for the financial year [Applicable Financial Year]. This letter sets forth the agreed terms, respective responsibilities, scope, and billing arrangements between [CA Firm Name] ("Chartered Accountant / Firm") and [Client / Entity Full Name] ("Client").
1. SCOPE OF PROFESSIONAL ENGAGEMENT
The Firm is engaged by the Client to provide professional services limited strictly to Tax Filing for the financial year [Applicable Financial Year]. The scope includes preparing, examining, verifying, and certifying financial schedules and statutory returns strictly as mandated under the Chartered Accountants Act 1949, Income Tax Act 1961, Central Goods and Services Tax Act 2017, and applicable regulations of the Institute of Chartered Accountants of India (ICAI). Where applicable, mandatory Unique Document Identification Numbers (UDIN) shall be generated by the Firm.
2. RESPONSIBILITIES OF THE CLIENT MANAGEMENT
The Client acknowledges and agrees that the preparation, completeness, and truthfulness of financial statements, accounting records, trial balances, invoices, expense vouchers, and statutory declarations are the sole and exclusive responsibility of the Client. The Client agrees to:
(a) Provide complete, accurate, and verified financial data, books of account, and supporting vouchers to the Firm no later than [Client Document Submission Deadline];
(b) Ensure that all transactions comply with applicable Indian corporate, taxation, and commercial laws;
(c) Grant the Firm unrestricted access to all personnel, physical records, digital databases, bank statements, and reconciliation files necessary for the performance of the engagement;
(d) Indemnify and hold harmless the Firm against any statutory penalties, late filing fees, interest, or prosecution resulting from late, inaccurate, falsified, or omitted documentation provided by the Client.
3. RESPONSIBILITIES AND LIMITATIONS OF THE FIRM
The Firm shall perform the agreed services with professional competence, due care, and independence in accordance with the Code of Ethics issued by the ICAI. The Client expressly understands that our engagement does not constitute an investigation into fraud, defalcation, or internal management irregularities, although our procedures may bring such matters to light. Our professional opinion or filing acknowledgment is based solely on the records, information, and explanations furnished by the Client.
4. PROFESSIONAL CONSIDERATION AND PAYMENT TERMS
In consideration of the professional services rendered under this letter, the Client shall pay to the Firm:
(a) Total Professional Fee: INR [Total Professional Fee (in INR)] (Indian Rupees [Total Professional Fee (in INR)] only), exclusive of applicable Goods and Services Tax (GST) and statutory out-of-pocket expenses;
(b) Fee Structure Basis: [Fee Structure Basis];
(c) Payment Terms: [Payment Terms and Schedule].
All statutory taxes, stamp fees, challan deposits, and government filing fees shall be deposited directly by the Client or reimbursed to the Firm in advance. The Firm reserves the right to withhold certification, digital signatures, or e-filings if professional fee invoices remain unpaid.
5. CONFIDENTIALITY AND NON-DISCLOSURE
[Confidentiality and Data Protection Terms]. The Firm agrees to maintain strict confidentiality regarding all proprietary financial data, business affairs, trade secrets, and taxpayer records acquired during this engagement, in compliance with Clause 1 of Part I of the Second Schedule to the Chartered Accountants Act 1949, save where disclosure is required by order of a competent court, regulatory body, or statutory authority under Indian law.
6. GOVERNING LAW AND DISPUTE RESOLUTION
This Engagement Letter shall be governed by, and construed in accordance with, the laws of the Republic of India. Any controversy, claim, or dispute arising out of or relating to this engagement shall be referred to mutually appointed sole arbitrator under the Arbitration and Conciliation Act 1996. The seat and venue of arbitration shall be in India, and the courts having territorial jurisdiction over [CA Chamber / Office Address] shall possess exclusive jurisdiction.
Please sign and return the duplicate copy of this letter to confirm your formal acceptance of the terms outlined above.
Yours faithfully,
For [CA Firm Name]
__________________________________
[Chartered Accountant Name]
Chartered Accountant
Membership No.: [ICAI Membership / Firm Reg. No.]
Address: [CA Chamber / Office Address]
ACKNOWLEDGED AND ACCEPTED:
I/We have read, understood, and hereby confirm our agreement with the terms and conditions stated in this engagement letter.
For [Client / Entity Full Name]
__________________________________
Authorized Signatory
Name: [Client / Entity Full Name]
Date: [Date of Engagement Letter]
Client GSTIN: [Client GSTIN / Identification]
SCHEDULE OF TERMS, COVENANTS & CONDITIONS(6 ACTIVE CLAUSES)
1. TENURE & TERM OF LEASE: The term of this lease/tenancy shall be for a fixed duration of {{duration_months}} months commencing on {{commencement_date}} and terminating on {{expiry_date}} unless renewed by mutual consent.
2. MONTHLY RENT & DUE DATE: The Second Party covenants to remit a monthly rent of Rs. {{monthly_rent}} payable in advance on or before the {{rent_due_day}} day of each calendar month.
3. REFUNDABLE SECURITY DEPOSIT: The Second Party has deposited an interest-free refundable security sum of Rs. {{security_deposit}} with the First Party, returnable within 7 banking days of vacant handover.
4. PERMITTED USE OF PREMISES: The demised premises shall be utilized exclusively for lawful residential dwelling purposes and shall not be converted into commercial or industrial use.
5. STATUTORY ARBITRATION (ACT 1996): Any dispute arising hereunder shall be referred to a sole arbitrator appointed mutually under the Arbitration and Conciliation Act, 1996, with seat of arbitration in the execution city.
6. SUB-LEASE & ASSIGNMENT PROHIBITION: The Second Party is strictly prohibited from sub-letting, parting with possession, or assigning any portion of the premises to third parties without prior written consent.
ATTESTATION BY INDEPENDENT WITNESSES (AS PER APPLICABLE LAW)
First Witness
Signature:
Full Name:
Parent / Spouse:
Address:
Govt ID / Aadhaar:
Second Witness
Signature:
Full Name:
Parent / Spouse:
Address:
Govt ID / Aadhaar:
