BMC Associates says Replied on 15th August,2026 04:13 AM

Yes, a CA in practice can generally pay earnest money or a security deposit in connection with a tender, provided the payment is made in the normal course of the professional assignment and does not violate the Chartered Accountants Act, 1949, ICAI Code of Ethics, or applicable tender conditions. Earnest money/security deposit is essentially a financial requirement imposed by the tendering authority to demonstrate the applicant's seriousness and, in some cases, ensure performance of the contract. Payment of such an amount does not, by itself, amount to prohibited commercial activity by a practicing CA. However, the CA should ensure that the tender itself is for a professional service permitted to be undertaken in practice and that the arrangement does not involve any prohibited business activity or conflict with professional independence requirements. For guidance on professional ethics and ICAI regulations, practicing professionals can consult experienced chartered accountant firms in gurgaon, a qualified chartered accountant gurgaon, a reliable ca firm in gurgaon, or a professional ca in gurgaon.