Clubbing of service income

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Anu (Querist)
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18 January 2013 Dear expert,

2 Chartered Accountants A & B are partners of an audit firm C. The turnover of audit firm is 7 lakhs pa and separate practice of A has an income of 4 lakhs. Since both A & C carry on audit services, can the two incomes be clubbed owing to the fact that both practices are affiliated to ICAI and hence service tax becomes applicable?

Kaushik Vinod

Kaushik Vinod (Expert)
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18 January 2013 Dear Anu,

As per ICAI CA can work in both the capacity so check the billing under same banner or under different banner.

Say RS.7000000= Firm Name

Rs.400000= Own Name

No Clubbing