Question related to Income Tax (and CA)

starchazer

starchazer

Disciple
Hey guys,

I need help.

I just want to know if a person earns around 17lac per year what should be the fees for the Chartered accountant that has handled the case?

Last year round the guy charged around 6-7k, but this year he's asking for 23k because he says Audit needs to be done. I just want to know if what he's charging is right or is he trying to cheat?

He says last date is 25th, and he told about the fees just today, so I feel he's trying to rush things up.

Please help, as I don't know much about these things.

Thanks!
 
Damn, you earn that much ? Awesome.

The last date was 31st july. After that you need to quote all the details about your income, your bank statement etc. So in a way that guy is saying right that audit needs to be done.

Still 23K is a hell lot of money. Even 5-6K you paid last year was too much.

Why don't you try some other CA ?

Also if you've already missed the deadline, you have time till end of your to file the return.
 
His question is for corporate taxes I think.

Audits are expensive, but are they needed? Why wasnt it done last year? Get a second opinion from another CA.
 
yes get second opinion

consider ca as good as brokers between you n income tax dept

n dont trust them blindly

n ask him under which section audit is needed for ur business

n do keep asking questions n try to tally it with other ca

p.s all CA r not like brokers but more than 95 % are
 
@Vasishta, Tere muhh main ghee shakkar .... I wish I earned that much. :D

But Thanks for the help guys :). I guess getting a second opinion would be a good idea.
 
Depends on the source of earning, considering the amount i'l guess it to be business, and if audit is necessary, then depending on the volume and the guy's rep/standard, 23k may not be too much..but u can haggle bring it to 20k abt...

This is an absolutely rough estimate, there are so many things that can change the fees..

Dont fight with him, atleast not now, seems like the guy is genuine prima facie, and trust me he'l know if u have consulted another CA :p

As for last yr, 6k is very reasonable, considering the amount of work, planning and time that goes in the tax planning for an income like 16lacs..
 
What do you mean here by earns 17 lakhs per annum? Is he doing a business or is he in service/profession? If he is a professional and he falls under a specified category of profession like Medicine,Engineer,Architect etc. and his gross receipts exceed Rs. 10 Lakhs, then he has to get his accounts audited . If he is doing a business, then irrespective of the profits, if his turnover/receipts or sales exceed Rs.40 Lakhs, then again the books have to be audited. Last date is 30th September.

As PM pointed out, the remuneration charged will vary on a case to case basis. If there is any sale of property (capital assets, shares etc.) and stuff, then capital gains get involved which would require significant tax planning.
 
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