UDIN: Advanced idea to control malpractices.

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TaxClue Team
TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

Several times it has been noticed that non-CAs has been misrepresenting themselves as ICAI member and offering certification services to numerous Authorities and Stakeholders. Such malpractices started bringing a question on the authenticity of financial documents/certification done by actual ICAI Members in practice.

Considering the rise in a number of complaints received by ICAI, the Professional Development Committee of ICAI has come out with an inventive idea of UDIN i.e. Unique Document Identification Number.

What is UDIN?

Unique Document Identification Number (UDIN) is 18-Digits system generated a unique number for every document certified/attested by Practicing Chartered Accountants (CAs). It will allow numerous Stakeholders and third parties to check the genuineness of the documents and will secure the certificates certified by practising Chartered Accountants.

Applicability of Unique Document Identification Number (UDIN):

From 1st February 2019, it is compulsory for all practising Chartered Accountants (CAs) to generate and obtain UDIN for all Certificates issued, containing financial information or any other contents; which are certified by them to be True and Fair.

UDIN cannot be made in name of CA Firm and it has to be obtained only by practising CAs holding full-time Certificate of Practice (COP). In case of Partnership firm or LLP, signing partner has to generate UDIN in his name. UDIN can’t be obtained by any other partner instead of signing Partner

UDIN is applicable not only to manually signed certificates but digitally signed / online certificates also.

Practising Chartered Accountants holding full-time COP has to follow the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by AASB (Auditing and Assurance Standard Board) of ICAI.

The exception to UDIN:

However practising Chartered Accountants (CAs) have to generate and obtain UDIN for all certificates, following are the list of certificates for which UDIN is not made mandatory:

  • Auditor’s Opinion/Reports issued under any Statute to any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, etc.)
  • Valuation Reports,
  • Quarterly Review Reports,
  • Limited Review Report
  • Information System Audit,
  • Forensic Audit,
  • Revenue / Credit / Stock Audit,
  • Borrower Monitoring Assignments,
  • Concurrent / Internal Audit and the like,
  • Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report and Management Report, etc.

Options available while generating UDIN:

While generating UDIN, members will have to select one of following from dropdown list:

1 Certificates issued on the basis of Financial books of accounts and annual financial statements-Capital Contribution Certificate/net worth certificate 17 Certification under the Income-Tax laws for various Deductions, etc.
2 Certificates issued on the basis of Financial books of accounts and annual financial statements – Turnover Certificate 18 Certification for the claim of refund under GST Act and other Indirect Taxes.
3 Certificates issued on the basis of Financial books of accounts and annual financial statements -Working Capital Certificate/Net Working Capital Certificate 19 Certification under Exchange Control legislation for imports, remittances, ECB, DGFT, EOU, etc
4 Certificates issued on the basis of Statutory records being maintained under Indian Companies Act, 2013 and applicable provisions 20 Certificates in relation to initial Public Issue/compliances under ICDR and LODR.
5 Certification of Fair Values of Shares of Company for the scope of merger / de-merger, Buy Back, Allotment of further shares and transfer of shares from resident to non-resident. 21 Certificate issued by Statutory Auditors of Banks
6 Certificates for Foreign Remittance outside India in form 15CB. 22 Certificate issued by Statutory Auditors of Insurance Companies
7 Net worth Certificates for Bank finances 23 Additional Certification by Concurrent Auditors of Banks not forming part of the concurrent audit assignment
8 Net worth Certificates for Bank Guarantee 24 Certificate of Short Sale of securities issued by Concurrent Auditors of Treasury Department of Banks
9 Net worth Certificates for Student Study Loan 25 Certificate of physical verification of securities issued by Concurrent Auditors of Treasury Department of Banks
10 Net worth Certificates for Issuance of Visa by Foreign Embassy 26 Certificate issued for KYC purpose to banks confirming sole proprietorship
11 Certificate in respect of Liquid Asset under Section 45-IB of RBI Act, 1945 27 Certificate Regarding Sources of Income
12 Certification of arm’s length price u/s 92 of the Income Tax Act, 1961. 28 Certificates for Claiming Deductions and Exemptions under various Rules and Regulations
13 Certificates for funds/ Grants utilisation for NGO’s 29 font-sizes: Certificates issued under LLP Act
14 Certificates for funds/ Grants utilisation for Statutory Authority 30 RBI Statutory Auditor Certificate for NBFCs
15 Certificates for funds/ Grants utilisation Under FERA/FEMA/other Laws 31 Certificate issued under RERA
16 Certificates for funds/ Grants utilisation Charitable trust/institution 32 Others


Other important information:

  • If UDIN is to be generated for Assignment and same UDIN is to be used in all documents signed under that assignment. In this case, there is no need to generate multiple UDINs.
  • Number of UDIN generated in a day/month/year is not restricted.
  • ICAI will not charge any fees for generation of UDIN.
  • UDIN is secure and it does not contain information about the client of any CA.
  • UDIN has to be generated at the time of signing the certificates or within 15 days from the date mentioned in certificates. But it cannot be generated on an advance basis.
  • There is no need to upload any document as an attachment while generating UDIN.
  • UDIN is to be generated only once for original certificates. In case the client asks for duplicate certificates, same UDIN can be mentioned.
  • There is no need to mention UDIN on every page or start of certificates. UDIN has to be cited after every signature and membership number.
  • UDIN has no expiry unless revoked by the signing authority (CA).
  • Revocation / Cancellation of UDIN can be done by members who are signing by providing an appropriate reason. There is no time limit for revocation.
  • Disciplinary proceedings as per the Second Schedule Part II of The Chartered Accountants Act, 1949 can be taken against members who do not adhere to the requirement of UDIN

The Source of the above information is https://udin.icai.org

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice. Neither the authors accept any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

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