St/tds on provision of audit fees

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Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 Dear Experts, A provisoin of Rs. 20000/- for audit fees was made on year ended 31/3/2015 in the books of ABC pvt. ltd, query.1) weather company is liable to pay ST under RCM on provision of audit fees or not..2) weather company is liable to made 10% TDS u/s 194j on provision of audit fees...... Thanx & Regard Akhil Saxena

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear Akhil
1. No RCM on fees paid to CA or CA firm.
Hence the Auditor is liable to pay st himself.
2. No TDS if fees amount does not exceed Rs.30000/- in a financial year.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 Dear sir in AY 2015-16, the fees of CA is exceed 30000 inclusive provision of audit fees so please guide me weather TDS is to be made on provision of audit fees or not..

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Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear
If the fees for the AY 2015-2016 alone (without provision) is more than 30000/- then only you are required to deduct TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 sir plz guide on this way.. assume if provision for audit fees is exceed 30000 alone then TDS is to be made on provision of audit fees or not...

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear
We have to see whether the provision of fees is for the one year or more.
Pls focus on words limit is Rs.30000/- p.a

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 sir assume during the AY 2015-16, No any fees was paid to CA and on 31/3/2015 provision of audit fees is made say 35000 this 35000 amount is audit fees only for AY 2015-16, in this case weather TDS is to be made on this 35000 or not..

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear
In this case you are required to deduct TDS @10% i.e Rs 3500/- on Fees provision.

As TDS is to be deducted at the time of credit of such sum to the account of the payee or at the time of payment , whichever is earlier.
An in case credit to account is earlier.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 sir some CA is not in favoure of made TDS on provision they said TDS will be made either credit or payment whichever is earlier but in case of provision it is neither credit nor payment therefore No TDS is to be made.. plzz clarify.......

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Dear
Credit in account means the date your book.
If you enter it on 31/3 then deduct TDS on 31/3.
or if yoy enter it on any earlier date then deduct tds on that date.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 sir i am senior accountant working in pvt. Ltd. you know this company's CA also is not in favour to Made TDS on provision.. our CA said credit means the party name should be credit i.e. audit fees Dr... to ca firm........ and in case of provision No CA firm is being credit therefore No TDS,

praveen

praveen (Expert)
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06 January 2016 There are such interpretations made by certain Chartered Accountants. But what really matters is whether there is a letter of engagement with the CA. If yes then whether the terms of fees was agreed before it self. Either ways you can always disallow the expenditure in the current year and claim the expenditure in the year in which TDS has been done and remitted.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 sir what is final decision weather to Made TDS on provision if exceed 30000/- or not...

Ankur Singhal

Ankur Singhal (Expert)
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06 January 2016 Yes deduct TDS.
Statutory liability cannot be denied only on the basis of your CA's will.

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 thanks for your valuable guidance in this regard...

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Meena Rajesh Jalan