ICAI Tender Guidelines 2026: No Bidding Without Minimum Fees (Effective Immediately)

The Institute of Chartered Accountants of India has issued new Guidelines on Tenders with immediate effect. Dated 12th October 2026 and released by the Professional Development Committee through its Tender Monitoring Division, the ICAI tender guidelines bar members in practice from responding to tenders for services exclusively reserved for chartered accountants where the tender does not prescribe any minimum fees. Where the tender prescribes minimum fees, the member must not quote below them. Members must now maintain cost sheets for every bid, and the guidelines prohibit reverse bidding below the minimum fee.

ICAI tender guidelines: the 5 rules every practicing CA must know

1. No minimum fee, no bid (for reserved services). A member in practice shall not respond to any tender document, by whatever name called, which does not prescribe any minimum fees for availing professional services which are exclusively reserved for chartered accountants under any statute.
2. Never quote below the minimum. In that case, the fee quoted by the member in response to such tenders shall not be less than the minimum fees prescribed in the tender document.
3. Fees must be commensurate. The fees quoted should not be extremely low, whether or not the tender is in the area of reserved services. In particular, they must be in line with the size, value, volume, manpower requirement, and nature of the work.
4. Maintain a cost sheet. In all cases where the member responds to the tender, the member shall maintain a cost sheet with details of the estimated costs, covering the number of persons involved, the hours to be spent, and related details. The Institute may call for any such documents relating to any bid.
5. Reverse bidding below the minimum fee is banned. The guidelines do not permit responding to a reverse bidding option provided by the tenderer below the minimum fee.

What counts as “minimum fee”

The official explanation clarifies that “Minimum Fee” includes estimated fee, professional fee, or average fee, by whatever name called. In other words, tenderers cannot dodge the rule by calling the fee a different name.

Tenders for non-reserved services: the relaxation

A member in practice MAY respond to tenders for services not exclusively reserved for chartered accountants under any statute, irrespective of whether the minimum fee is prescribed in the tender document, and irrespective of whether only chartered accountants are invited to respond. Importantly, this is the key carve-out: the strict minimum-fee rule bites on reserved services such as statutory audit; for other professional services, members can bid freely.

Where the ICAI tender guidelines do not apply

The guidelines do not apply where tenderers have called for quotations from practicing members or firms through individual letters. Members must also read them in conjunction with the earlier Guideline No. 1-CA(7)/03/2016 dated 7th April 2016.

Why ICAI brought this in

The stated intent is to protect both fee levels and service quality: to fetch a good price for the services and, at the same time, provide quality service. Furthermore, undercutting on tenders for audit and other reserved services has been a long-standing concern in the profession. These guidelines give the Tender Monitoring Division real teeth, including the power to demand the cost sheet behind any bid a member submits. ICAI has also released an Engagement Letter Utility to help members in practice document their client engagements.

What CAs in practice should do now

1. Check every tender document for prescribed minimum fees before responding.
2. Walk away from reserved-service tenders that prescribe no minimum fee.
3. Never quote below the stated minimum, including in reverse auctions.
4. Maintain a cost sheet for every bid: team size, hours, and cost basis.
5. Finally, report violations to the Tender Monitoring Division at tmd@icai.in or 0120-3045984.

ICAI tender guidelines: FAQs

From when are the guidelines effective? With immediate effect from 12th October 2026.

Can a CA respond to a tender prescribing no minimum fee? Only if no law exclusively reserves the services for chartered accountants. For reserved services, the answer is no.

What does minimum fee include? For example, estimated fee, professional fee, or average fee, by whatever name called.

Is reverse bidding allowed? Not below the minimum fee. The guidelines prohibit any reverse bid under the minimum.

Do the guidelines apply to quotations sought through individual letters? No, the guidelines expressly exclude those.

About the Author

CA Luhsna Awrak is a Chartered Accountant (DISA-qualified) writing on CA exams, tax and finance careers.

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