Free Services to Auditor

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This discussion explores whether free hospitality services, such as room and food, offered by a hotel client to their statutory auditor are subject to GST. The core question is whether these complimentary services constitute 'consideration in kind' for the audit, thereby attracting GST. The prevailing view suggests these are audit expenses borne by the hotel rather than taxable consideration for the auditor's services.

Kailash

Kailash (Querist)

13 May 2020 Free of cost hospitality Service given to statutory Auditor by Hotel (Client), Tax effect under GST? Whether same would form part of consideration for Auditor?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

13 May 2020 Hospitality services provided by client not part of auditor consideration. It's part of audit expenses .

Kailash

Kailash (Querist)

15 May 2020 Sir my Q is client is Hotel itself and auditor receiving free room and food, while providing audit service. As per definition of Consideration in GST include everything that is receiving from service recipient. So now this free room and food can be taken as consideration in kind to Auditor and pay gst on it

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