TDS ON STATUTORY AUDIT FEES:
Generally Audit Fees is decided by the Board of Directors in consultation with the
Auditors at the time of finalization of accounts, which mostly are done in August.
Provision for the same is made in the previous year for which TDS is required to
be paid in May and Return is required to be filed in June. Generally it is very
difficult on or before end of May to finalize amount of Audit Fees and sometime
even name of Auditors. There may be some instances where amount of Audit
fees differs or Auditors may change like:
a) Statutory Auditors were appointed as Tax Auditors after end of May.
b) Other Chartered Accountant is appointed as Tax Auditors instead of Statutory
auditors in earlier year.
c) Auditors resigned or otherwise termination of assignment and another Auditor
is appointed.
d) Merger/ Demerger of Audit Firms take place.
In these types of cases it is difficult to pay the TDS on Audit Fees on or before
end of May, file TDS Return and issue TDS Certificate before end of June. TDS
certificate is required to be handed over to the deductee within 7th June i.e. TDS
Certificate is to be handed over before completion of assignment and payment.
In these circumstances what should be the date for deduction and payment of
TDS?
IS it 31st March and 31st May or within 7th day of following month in which
accounts are finalized?
CAclubindia
