Key takeaways
- Use a clean, copy ready proposal template to convert prospects faster, ensure your engagement letter aligns with ICAI documentation standards, audit trail, and service scope, see ICAI documentation standards for reference.
- State fees as INR plus 18 percent GST, include TDS at 10 percent under Section 194J, add late fee clauses, and define invoice cadence clearly.
- Adopt a digital signature workflow with Aadhaar eSign, DSC, or email OTP, create an audit trail, and confirm state stamping rules before execution.
- Map scope to delivery workflows immediately after signing, leverage an AI accounting tool like AI Accountant to automate bank ingestion, ledger mapping, and dashboard generation.
- Choose an appropriate fee structure, see pricing models for accounting services, and set proposal validity to create urgency.
- Automate engagement letter creation and approvals, learn from engagement letter automation for CA India.
- Prepare a post signature onboarding checklist, use the client onboarding playbook for CA firms to ensure zero drop offs.
Table of contents
Introduction: Why Every Indian CA Needs a Clean Proposal Template
For Indian Chartered Accountants, a crisp, copy ready proposal converts prospects into clients with fewer follow ups. Vague scope, missing payment terms, or lack of digital signature process often delay onboarding, and undermine legal standing, these are costly mistakes before filing deadlines.
Think about your last pitch, you invested hours building trust, then scrambled for an old template when it was time to formalize. A solid proposal template solves this, it speeds up onboarding, protects your practice legally, and shows professionalism that wins mandates.
This guide gives you everything you need, ready to copy, ready to customize, and ready to sign today.
What Makes a Strong CA Proposal in India
A powerful CA proposal goes beyond listing services and fees, it creates a legally binding framework that protects both parties. Your engagement letter serves as the legally enforceable agreement under ICAI guidelines, distinct from the proposal summary.
- Include India specific compliance notes, GST at 18 percent, TDS under Section 194J, jurisdiction and arbitration clauses aligned to your city.
- Keep ICAI standards for documentation, audit trail, and service scope front and center, see ICAI documentation standards.
- Address data security, payment schedules, and termination scenarios clearly.
Pro tip: Treat the proposal as your pitch, and the engagement letter as your contract, both should be tight, clear, and mutually reinforcing.
Copy Ready Proposal Template for CA
Cover Page Elements
Identify the parties clearly, include firm name and complete address, client legal name and registered address, engagement period with exact dates or mark as ongoing, summarize services in one line, for example, Monthly Bookkeeping and GST Filing.
State your fee model upfront, choose monthly retainer, fixed fee, or milestone billing, see pricing models for accounting services for practical structures.
Section 1: Scope and Deliverables
- Bookkeeping, monthly close, ledger mapping, report timelines.
- GST, preparation of GSTR 1 and 3B, input credit reconciliation against GSTR 2B, exception handling.
- TDS returns, quarterly filings, Form 16A certificate management.
- Audit, sampling methods, management representations, findings report format.
- VCFO, KPIs, review frequency, compliance calendar deliverables.
Section 2: Payment Terms
- Fees as INR plus 18 percent GST, never leave GST implications ambiguous.
- Advance requirements, for example 50 percent for new clients.
- TDS at 10 percent as per Section 194J, quarterly certificate submission via email.
- Invoice cadence, monthly or quarterly, payment due in 15 to 30 days.
- Late fee at 1.5 percent per month after due date.
Section 3: Termination and Liability
- Termination with 30 days written notice, for cause termination upon material breach with 7 days cure period, see ICAI documentation standards context.
- Liability capped at total professional fees paid, exclude indirect damages.
- Professional indemnity insurance maintenance, minimum coverage guidance.
- Survival clauses for confidentiality, IP, and payment obligations.
- Arbitration venue and exclusive jurisdiction city specified.
Section 4: Confidentiality and Data Protection
Reference compliance with ICAI standards, include NDA provisions covering all financial data, specify data retention and deletion policies post engagement.
Section 5: Signature Block
Provide options for Aadhaar eSign, DSC, or email OTP, note stamp paper or eStamp requirements based on state law, include designated signature lines for both parties with dates.
Scope and Deliverables Bullets
Bookkeeping and Reconciliation
Ingest monthly transactions from bank statements, credit cards, and cash books, map ledgers in Tally or specified ERP, close month within 5 working days of documentation, deliver P and L, Balance Sheet, and Cash Flow by the 10th of each month.
GST Compliance
Prepare and file GSTR 1 and 3B monthly or quarterly, reconcile sales data against GSTR 2B for input credit, document exceptions, dependencies on timely purchase registers and sales invoices.
TDS Returns
Prepare and submit quarterly TDS returns, manage Form 16A certificates for vendors and contractors, coordinate challan payments and corrections.
Audit and Internal Audit
Use risk based sampling for transaction testing, collect management representations, deliver audit report with observations and recommendations, hold post audit review within 7 days of submission.
VCFO and Dashboards
Deliver monthly MIS showing Revenue, Expenses, Net Profit, and agreed KPIs, provide secure portal access, schedule monthly review calls and quarterly business reviews.
Payment Terms Templates
Retainer Model
Monthly retainer of INR [amount] payable in advance by 5th of each month, retainer covers up to [X] hours, additional hours billed at INR [rate] per hour.
Fixed Fee per Filing
Per GSTR filing fee of INR [amount], inclusive of two revisions, additional revisions at INR [amount], payment due within 7 days of filing confirmation.
Milestone Based Billing
Total project fee of INR [amount] payable as 40 percent on signing, 30 percent at midpoint, 30 percent on acceptance.
GST and TDS Provisions
All fees are exclusive of 18 percent GST, TDS at 10 percent as per Section 194J will be deducted by client, TDS certificate issued quarterly within 15 days of quarter end.
Late Payment Charges
Interest at 1.5 percent per month applies beyond 15 days credit, services may be suspended for payments overdue by 30 days.
Scope Change Management
Any request beyond agreed deliverables requires a written change order, additional work billed hourly at INR [amount] or via fixed fee agreement.
Termination and Liability Clauses
Termination for Convenience
Either party may terminate with 30 days written notice, all work completed until termination remains billable, client receives deliverables upon payment clearance.
Termination for Cause
Immediate termination permitted for payment default exceeding 45 days or material breach, breaching party has 7 days to cure.
Liability Cap
Total liability limited to professional fees paid in the preceding twelve months, excludes gross negligence, willful misconduct, or fraud.
Indemnity Provisions
Mutual indemnification for third party claims arising from respective actions, firm maintains professional indemnity insurance with minimum coverage of INR [amount].
Survival Clauses
Confidentiality survives for 3 years post termination, IP rights remain with respective owners, payment obligations for completed work survive termination.
Dispute Resolution
All disputes resolved through arbitration under Indian Arbitration and Conciliation Act, arbitration venue in your city, Indian law governs, courts of your city have exclusive jurisdiction.
Digital Signature Workflow Checklist
Choose Your Signature Method
- Aadhaar eSign via NSDL or eMudhra, most cost effective.
- DSC for highest legal validity, required for certain filings.
- Email with OTP verification for smaller engagements, maintain audit trail.
Stamping Requirements
- Check state specific stamp duty for professional service agreements, verify exemptions or thresholds.
- Use eStamp where available, if not, attach physical stamp paper as annexure to digitally signed document.
Step by Step Workflow
- Finalize proposal or engagement letter in PDF, ensure fields are complete.
- Insert signature blocks for both parties, mark areas clearly.
- Upload to NSDL, eMudhra, or DocuSign India mode.
- Send signing invitation, set reminders at 48 hours.
- Download audit trail certificate post signing, store securely.
- File countersigned agreement in DMS, create calendar reminders for key dates.
- Share final PDF with client, include stamped copy if applicable.
Client Onboarding Integration
Collect KYC documents, PAN, GSTIN, registration certificate prior to sending proposal, after signature, provision access to Tally or Zoho Books, obtain authorizations for GST portal, bank statements, and payments, set up recurring payment instructions for retainers.
Tools for Streamlining Proposal to Delivery
Proposal and Document Management
AI Accountant automates post proposal workflows, after signing it handles bank ingestion, ledger mapping, and dashboard generation, with ISO 27001 and SOC2 Type 2 certifications supporting confidentiality clauses.
PandaDoc creates dynamic proposals with pricing tables and signature workflows, sends automatic reminders, tracks views.
Zoho Sign offers affordable Aadhaar eSign integration, Adobe Sign provides enterprise grade audit trails, HelloSign integrates with Google Workspace for Gmail and Drive centric firms.
Practice Management Integration
Connect signed proposals to practice management systems like Karbon, TaxWorkflow, or Practice Ignition, trigger automatic task lists on signature, set billing schedules directly from proposal terms for automated invoicing.
AI Accountant Guidance for Operational Delivery
Scope to Workflow Mapping
Use Bills module for vendor invoice ingestion, configure Transactions for bank processing, enable reconciliation workflows for month end close commitments, flag exceptions for review as promised.
Platform Sync Setup
Connect to Tally or Zoho Books immediately after onboarding, configure bi directional sync to fetch bills and invoices while pushing clean entries back, set user permissions aligned with confidentiality provisions.
Dashboard Delivery
Generate KPIs and MIS automatically, Revenue versus Expenses, Gross Profit, Net Profit, schedule dashboard emails by the 10th each month, offer secure portal access for real time viewing.
Compliance and Security
Maintain ISO 27001 and SOC2 Type 2 aligned controls, keep detailed audit logs for reviews, apply regular security updates and monitoring to protect client data.
Final Checklist Before Sending
Content Review
- Scope, deliverables, and fees match sales discussions exactly.
- Payment terms include GST and TDS provisions explicitly.
- Termination and liability clauses reflect firm practice with stamping notes.
- All annexures and schedules referenced are attached.
Technical Preparation
- Digital signature process confirmed and tested, backup method ready.
- Signature blocks are clearly marked, not overlapping text.
- File naming follows convention, client name, service, date.
Post Signature Process
- Countersigned copy filed immediately in DMS.
- Onboarding checklist prepared and assigned to team, see client onboarding playbook for CA firms.
- Calendar reminders set for review dates, payment schedules, deliverable deadlines.
- First deliverable or kickoff meeting scheduled within 48 hours.
Implementation Timeline for Your New Proposal System
Week 1: Template Customization
Download and review templates, customize with firm details, fees, and terms, get legal review for ICAI compliance, create variations per service line, test the digital signature workflow with team.
Week 2: Team Training
Train the team on template selection and usage, practice the signing workflow, prepare backup plans for technical glitches, maintain a shared repository with version control.
Week 3: Client Rollout
Use templates with new prospects, track time saved versus old methods, gather feedback from closed engagements, refine templates based on repeated client queries.
Ongoing: Optimization
Review templates quarterly, track conversion rates from proposal to signing, identify clauses that cause delays, build a clause library of variations that work for different client profiles.
Download Your CA Proposal and Engagement Letter Template Bundle
- One page master proposal template in Word and PDF, edit once and reuse.
- ICAI format engagement letter with formal legal language, battle tested.
- Clause library covering scope, payment, termination, and liability for multiple service lines.
- Digital signature workflow checklist with platform comparisons, and stamping guidance.
- Service specific annexures for bookkeeping, GST, statutory audit, internal audit, and VCFO.
- Print friendly versions with copy ready clause blocks.
Conclusion: Transform Your Practice with Professional Proposals
A well crafted proposal template transforms how you win and onboard clients, your engagement letter becomes a competitive advantage, clients sign faster when terms are transparent. Proper scope and deliverables prevent disputes, GST and TDS clauses ensure smooth collections, termination and liability guard your practice.
Digital signature workflows save days, clients in different cities sign immediately, you start delivering value faster. Your proposal is the first formal interaction, make it count with professional templates that convey expertise and reliability.
Customize the templates, test the digital workflow, and within weeks you will wonder how you managed without a proper proposal system.
FAQs About CA Proposals and Engagement Letters
Is an engagement letter enforceable under ICAI and Indian law, what stamping is required?
Yes, courts recognize properly executed engagement letters as binding contracts, ensure mutual acceptance, clarity of terms, and stamping per your state rules. For documentation rigor and audit trail expectations, refer to ICAI documentation standards. Where eStamp is available, attach the eStamp annexure to your digitally signed PDF, where only physical stamp paper is permitted, annex a scan with serial and date.
How should I draft payment terms with 18 percent GST, TDS under Section 194J, and late fees?
State fees exclusive of GST, add 18 percent GST to every invoice, mandate TDS deduction at 10 percent under Section 194J, and require quarterly TDS certificates within 15 days of quarter end. Add interest at 1.5 percent per month after a 15 day credit period. AI Accountant can push invoice schedules from your signed proposal to your billing system, reducing missed charges.
Is Aadhaar eSign or DSC acceptable to corporate clients and banks, will GST authorities accept this?
Under the Information Technology Act, Aadhaar eSign and DSC provide legal validity for most corporate engagements. Some banks or legacy processes may still request wet ink signatures, in such cases, keep a printable counterpart ready. For speed, many CA firms finalize proposals via Aadhaar eSign, then use DSC for statutory filings. AI Accountant stores the full audit trail certificate for each signed document.
What scope language covers GST filings, bookkeeping, and audit in one proposal without ambiguity?
List each service under separate sub sections, define deliverables, dependencies, timelines, and acceptance criteria. For GST, specify GSTR 1 and 3B, reconciliation against GSTR 2B, exceptions log. For bookkeeping, define month end close within 5 working days, reports by the 10th. For audit, state sampling method, management representations, and report format. Use the VCFO section for dashboards and review cadence. AI Accountant helps map each section to workflows automatically.
How do I handle change requests after signing, what is the correct change order text?
Include a clause that any request beyond agreed deliverables requires a written change order, specify pricing either hourly or fixed fee, and update timelines accordingly. Do not commence additional work until the amendment is accepted via digital signature. AI Accountant can route change orders for approval, then attach the signed annexure to the engagement record.
What liability cap is prudent for a small CA firm, should I carve out exceptions?
A common cap is total professional fees paid in the previous twelve months, carve out exceptions for gross negligence, willful misconduct, and fraud. Maintain professional indemnity insurance, minimum at half your annual fees, scale coverage with client risk. Document survival clauses for confidentiality and IP to protect post termination obligations.
Which arbitration and jurisdiction wording should I use for multi city clients?
Specify arbitration under the Indian Arbitration and Conciliation Act, venue in your city, and exclusive jurisdiction for courts of your city for enforcement. This avoids forum shopping, and keeps dispute resolution predictable. If your client has multi city operations, this clause still holds if mutually agreed and signed.
Should I attach sample MIS dashboards with the proposal, how detailed should they be?
Yes, include one page samples for Revenue, Expenses, Gross Profit, Net Profit, and any KPIs discussed. Samples set expectations, reduce scope disputes, and accelerate sign off. AI Accountant can generate sample dashboards from trial data to demonstrate value, then switch to live data after onboarding.
How do I integrate proposal signing with practice management and accounting systems?
Use a document tool that triggers workflows on signature, connect it to your practice management system to create tasks, and to your accounting system for billing schedules. AI Accountant integrates post signature by ingesting bank statements, mapping ledgers, and scheduling dashboards, ensuring delivery tracks exactly to scope.
What stamping rules apply across states with digital signatures, how do I stay compliant?
Stamp duty is state specific, check thresholds and exemptions for professional service agreements. Use eStamp where available, otherwise attach physical stamp paper. Keep the stamp reference and date in your annexure index. Digital signature plus proper stamping is generally valid, retain the audit trail certificate with the stamped annexure.
How long should proposal validity be, does it impact pricing negotiations?
Standard validity is 15 to 30 days, complex engagements may need 45 days. Shorter validity creates urgency, and limits exposure to scope creep. If negotiations extend, issue a revised proposal with a refreshed validity and updated fees. Track expiries in your CRM, AI Accountant can remind stakeholders ahead of the lapse.
Can I subcontract to article assistants or partner firms, what clause should I add?
Yes, include a subcontracting clause that permits use of article assistants or affiliates while retaining overall responsibility, commit to confidentiality and data protection, and disclose any conflict risks. Limit client approval to material subcontracting only, routine staffing changes need not be pre approved.
