TDS ON AUDIT FEES

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 AUDIT FEES PROVIDED FOR YEAR 2009-10.RS. 30000 SUPPOSE.

THEN WHICH TDS RATE TO BE TAKEN I.,E IN LAST YEAR 20000/- WAS LIMIT,
BUT THIS YEAR 30000/- THEN WHICH LIMIT TO BE TAKEN.

CA Navin Jain

CA Navin Jain (Expert)
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26 September 2010 rs. 20000 shall be taken

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 ok.........
but suppose audit fees is fixed on 25th september.
and provided upto 31/03/2010

then it is late deduction of tds & deposited & interest liability arises in books of client.
also

CA Navin Jain

CA Navin Jain (Expert)
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26 September 2010 we have make the provision of audit fee on 31.3.2010 because we have received the bill in next financial year so its not late deduction

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 but if any late payment we done,
then with IT authority we can argue that we received late bill.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 and interest to be paid or not.

who will bear that interest portion , auditor or client?
on late deposit of tds.

and TDS return should be revised or not.

bcoz client do not knw at time of 31/03/2010 that how much audit fees will be..
and client filled tds return of last fourth quarter.

CA Navin Jain

CA Navin Jain (Expert)
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26 September 2010 interest is applicable if tds deposit after 31.05.2010. return can be revised. client bear the all expenses

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 but this interese amt. is "zabardasti" na.......
bcoz audit fees alwz decided at the end .i mean in month of sept in mostly cases.......

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 and interest amt alwz high.in cases where audit fees rs. 10 lcas/15 lacs.

then how client will bear thses int. amt.

u mean those client whose audit fees decided after may.
these all client revised their tds return.???

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 actually client provide audit fees in big corporates

kantijain

kantijain (Expert)
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28 September 2010 Dear ???,

The assessee/client is aware of his business & is also tentatively aware of the professional fees payable to auditor. So he is suppose to provide the expense on accrual basis & suppose to do TDS on booking the expenditure in the books.
If there is default or delay the assessee/client has to bear the consequence, including interest on late remittance of TDS.