Tax on Audit fees
This query is : Resolved
24 March 2022
To
The senior experts
Concerned Company is a Govt owned Company whose auditors are appointed by AG. The Board of Directors fix the remuneration of Auditors Rs.2,00,000/- for Statutory Audit including Tax Audit. This amount agreed by AG and communicated the Company via letter.
However Auditor states that the amount exclude I Tax/GST.(but nowhere it was mentioned whether the amount(Rs.2,00,000/-) was include/exclude I Tax/GST).
Now my query is:
1. How we treat Rs.2,00,000/- (audit fee) inclusive or exclusive of I Tax/GST?
2. If we pay auditors some extra amount by way of Out of pocket expenses will it be included in auditors fee and tax will be deducted?
Thanks
Abhijit
The senior experts
Concerned Company is a Govt owned Company whose auditors are appointed by AG. The Board of Directors fix the remuneration of Auditors Rs.2,00,000/- for Statutory Audit including Tax Audit. This amount agreed by AG and communicated the Company via letter.
However Auditor states that the amount exclude I Tax/GST.(but nowhere it was mentioned whether the amount(Rs.2,00,000/-) was include/exclude I Tax/GST).
Now my query is:
1. How we treat Rs.2,00,000/- (audit fee) inclusive or exclusive of I Tax/GST?
2. If we pay auditors some extra amount by way of Out of pocket expenses will it be included in auditors fee and tax will be deducted?
Thanks
Abhijit
24 March 2022
Whether to treat as inclusive or exclusive will depend upon the words mentioned in the appointment letter or appointment agreement.
Out of pocket expenses paid to auditor will not form part of audit fees.
Out of pocket expenses paid to auditor will not form part of audit fees.
25 March 2022
Thanks
To CA Puja Sharma for reply
Regards
Abhijit
To CA Puja Sharma for reply
Regards
Abhijit
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