The Institute of Chartered Accountants of Nepal (ICAN) reportedly decided to bar Indian Chartered Accountants from practicing in Nepal. ICAN, the regulatory body for chartered accountants, has decided that the CAs who possess a certificate of Institute of Chartered Accountants in India (ICAI) will not get a licence to practice in Nepal after mid-July.
The decision is in line with Indian practice that bars chartered accountants who have graduated from Nepal from practicing chartered accountancy in India.
A proposal in this regard has been tabled before the Board based on the complaints from students in Nepal. The proposal was approved by a majority of board members of the ICAN. However, the minute of the meeting has not been prepared yet due to the absence of some members.
The ICAN is a quasi-government regulatory body with a 17-member board. Of these members, 10 are certified chartered accountants, four are registered auditors and three are government officials.
ICAN President Mahesh Khanal said that this decision, however, will not come into effect if India agrees to sign a mutual recognition agreement with Nepal, which will pave the way for those who have pursued chartered accountancy courses in Nepal to practice chartered accountancy in India.
Currently, Nepali graduates of the Institute of Chartered Accountants of India (ICAI) have to complete a one-year internship and pass examinations on Nepali corporate and tax laws to be eligible to work as authorized chartered accountants in Nepal. If the new provision comes into effect, ICAI graduates looking forward to practicing chartered accountancy in Nepal will have no option but to undergo the chartered accountancy course again in Nepal, which can take around five years.
The ICAN had initially floated a plan to immediately bar new ICAI graduates from practicing chartered accountancy in Nepal a month ago. But the plan drew widespread criticisms, especially from Nepali students pursuing chartered accountancy in India.
It is estimated around 10,000 Nepali students are currently enrolled in the Indian chartered accountant institute. Following this pressure, the plan to immediately prevent new ICAI graduates from practicing chartered accountancy in Nepal was put on hold.
Then on June 12 a delegation led by ICAN President Khanal visited India to meet the president of the Indian chartered accountant institute. 1,200 licensed chartered accountants. Around 5,000 are pursuing chartered accountancy course in Nepal.
