Query

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.