Sunil Sethi & Co. - Professional Fees

ICAI's Recommendations on Minimum Scale of Fees

The Committee for Members in Practice (CMP) of ICAI as a part of its commitment to strengthen the Practitioners has initiated the Revised Minimum Recommended Scale of Fees for the professional assignments done by the members of ICAI. The recommendation is about the fee to be charged as per the work performed for various professional assignments. The fee has been recommended separately for Class A, Class B, and Class C cities. However, more Fees can be charged depending on the complexity and the time spent on the particular assignment. As per ICAI guidelines, the Chartered Accountants are free to charge varying rates depending upon the nature and complexity of various professional assignments and the time involved in completing the same.

The recommendation is about the fee to be charged as per the work performed for various professional assignments and the amount quoted under respective heads of professional work. Office time spent traveling & out-of-pocket expenses would be chargeable. Also, GST should be collected separately wherever applicable. Further, ICAI has recommended that the bill for each service should be raised separately and immediately after the services are rendered. The ICAI urges all professionals in practice to consider these recommendations while charging fees for the work performed for various professional assignments.

Click on the crimson red button to access a list of professional services and their respective "Revised Minimum Recommended Scale of Fees" as of March 2020.

There is always somebody who charges less!

Minimum Recommended Scale of Fees by ICAI

Quality Over Cost

In the realm of professional services, the justification for charges often lies in the quality and expertise delivered. While it's common to encounter individuals or firms offering services at lower rates, it's crucial to recognize that lower charges don't necessarily equate to superior value or outcomes. Just as you wouldn't expect a doctor to lower their bill for providing professional medical services, the same principle applies across various professions. Quality deliverables, whether it's legal advice, financial consulting, or creative services, necessitate expertise, time, and resources. Consider the analogy of visiting a doctor. When you seek medical assistance, you're not just paying for the doctor's time but also for their years of education, training, experience, and access to specialized tools and knowledge. Similarly, in other professions, the fees charged often reflect the investment made in acquiring skills, staying updated with industry trends, and delivering reliable results. Choosing a professional based solely on price can lead to compromises in quality, efficiency, and ultimately, outcomes. Clients who prioritize value understand that investing in expertise and excellence yields long-term benefits, whether it's in terms of legal representation, financial planning, or the success of a creative project.

Singapore and Zurich share the top spot this year, with Singapore frequently ranking as the priciest place to live in recent years. Zurich's rise is attributed to the Swiss franc's 10% appreciation against the dollar over the past year. Western European cities dominate the top 20, with rising prices and the European Central Bank's six interest rate hikes in 2023 contributing to the trend. North American cities, including New York, have dropped in the rankings, with New York falling to third place from last year's joint most-expensive city with Singapore.

Just as in the ranking of cities like Singapore and Zurich, the justification for charges often lies in the expertise and quality delivered. While Delhi may not share the same cost of living as these global hubs, the principles remain consistent: quality services require investment in expertise, time, and resources. The high standards and quality associated with professional services transcend geographical boundaries, even in places like Delhi, India, where the cost of living may be comparatively lower on a global scale.

In essence, while there may always be someone willing to offer services at a lower rate, the emphasis should be on the quality of the deliverables and the value they bring to the table. As with any investment, the goal is to secure the best possible outcome, which often necessitates recognizing and compensating for the expertise and dedication of professionals.

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