Tds & st on audit fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2016 Dear Experts,
Plz clarify my query...1) weather TDS is to be made on provision of audit fees....2) weather ST will be paid on provision of audit fees,
!
Regard
Nilesh Gupta

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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01 April 2016 If you make the provision of the audit fees which is more than Rs. 30000 then you are required to make the TDS on the date of making the Provision of the same.

The CENVAT credit of service tax in respect of audit fee shall be allowed, on or after the day which payment is made or the service tax paid or payable as is indicated in invoice, bill i.e. on the basis of invoice.

Thus the credit of service tax can’t be availed on provision basis. However if service tax credit taken on provision basis, it cannot be utilized against payable amount.