12 March 2016
please clarify, auditor raise invoice Rs.100000 for audit fees and service tax 14.5% Rs.14500/, he said you pay only 50% i.e Rs.50000 now, after completion of audit balance you will pay, how much service tax i have to pay Rs.14500 for Rs.100000 or Rs.7250 for Rs.50000/?
12 March 2016
Service tax is payable by the service provider on completion of the service, issue of invoice or receipt of money whichever is earlier. In case of professionals, if the turnover is below Rs.50 lakhs then the service tax is paid on receipt basis, else it on issue of invoice. Assuming your auditor has a turnover exceeding Rs.50 lakhs, he has already deposited the full Rs.14,500 payable to the government. as far as you are concerned you pay Rs.57,250/- less TDS to the auditor and enclose the cheque with a covering letter giving the details of fees, TDS and Service Tax Paid.
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