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Query

Anubhaw Garg (Chartered Accountant in Practice) (101 Points)

20 March 2016

If a company is charging extra service tax in case of transportation of goods I.e. more than the specified rates. Is it okay or any point can be raised as being an auditor? And how we verify that it does not require TDS deduction?

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CA Prateek Garg (CA in Practice) (1447 Points)
Replied 20 March 2016

There is no statutory liability except that company must deposit with govt the extra amount collected in the name of service tax. If company is depositing the entire amount collected as service tax then there wouldn't be any statutory repercussions.

However service recipients may raise an objection.

Further as the auditor of company you need not verify the TDS obligation of customers of company. Even if customers of company are liable to deduct the tax of company and they are not doing so then it wouldn’t affect the company.