professional charges allowable or not

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seema singla (Querist)
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10 July 2011 I am a practising CA. I audit the books of a client in my partnership firm. Besides this, the client pays me some professional charges for consultancy in accounting. I receive that amount in my personal capacity as I want to increase my personal income for ITR.
Is the transaction OK?
Is it possible?
Plz reply.

U S Sharma

U S Sharma (Expert)
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10 July 2011 it may be competance with firm,
u can do the practice but not with same person in firm and individual both.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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11 July 2011 What Mr. Sharma is replying is beyond anyone imagination.

The firm and the partners of the C.A firm ae quite different. The firm is charging for audit and Seema is charging for representing Income Tax or Sales Tax matters which the firm is not taking up for that client. Hence, it can charged without any objection and if the individual billing is less than 30000 the TDS may not be deducted.

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