Chartered accountants from the UK and Canada may be allowed to practise in India on a reciprocal basis.

The Institute of Chartered Accountants of India have proposed to the government that the plan be implemented strictly on a reciprocal basis so that chartered accountants from India are also allowed to practise in the United Kingdom and Canada.

If implemented, it will be the first time that an overseas chartered accountant will be allowed to have a practice in India, ICAI president Ranjeet Kumar Agarwal said on Wednesday. The proposal is part of India’s ongoing negotiations for Free Trade Agreements (FTAs) with the UK and Canada.

Agarwal also said that a similar arrangement is being worked out with Australia.

Once the reciprocal system is implemented, chartered accountants from abroad will have to register with the ICAI, which will be regulating them. It will also be the case for Indian chartered accountants going overseas.

“It will be on a reciprocal basis and not on a standalone basis. If they agree, it will be a win-win for both countries... we are very much hopeful... in the UK, there is an ageing population and most of the work has shifted from the UK to India,” Agarwal said.

ICAI sources told The Telegraph that the Institute of Singapore Chartered Accounts (ISCA) has recognised ICAI certification as one of the recognised qualifications for associate membership of ISCA. As a result, any ICAI members residing in Singapore and having a minimum of six months of local work experience in Singapore will qualify for membership of ISCA.

However, a section of CAs are of the opinion that reciprocity factor needs to be put firmly in place.