Audit fees

Dear Virag

Fees charged from a client is a subject matter of the following factors.

1. Professional resources and skill spent on the assignment ( you will appreciate that time spent by you and your articled clerk cannot be equated)

2. Professional time spent on the assignment ( Lesser time spent does not necessarily mean lower fees as there is a premium on "knowing what to do"

3. Your agreement with the client before staring the assignment if any

4. Long term relationship with the client

and Finally and most importantly

THE ABILITY AND INTENTION OF THE CLIENT TO PAY. ( u may give  a decent bill which he may agree to but generally disappear from your life :-))

Hope things are clear

Sir

Further for business the Tax Audit limit has been increased to Rs. 60 Lacs. So for turnover of Rs. 55 Lacs Tax Audit will not be applicable.

Correct me if I am wrong.

That is correct. But that shouldnt stop anyone from collecting a proper fees for the finacial statements and return filed i s'ppose :--))

Rajgopalji 100% Agreed with your reply. We should charge the Fees according to our Profession. :)

But i was just trying to clear basics about applicability of Tax Audit which was mentioned in the query by CA Virag. 

Thanks.

YES......BUT clients does not want to show 8% profit & want to audit books of accounts to show lower profits.......

I m discussing bout only Audit Fees & not IT return fees.

thanks to everyone.....