How much fees do Chartered Accountants (CA) in India charge for Service Tax registration and audit?
Some clarifications:You will be firstly charged for Service Tax Registration.After that you will be charged for Monthly/Quarterly/Half yearly/Annually, whatever is the applicability of various types of returns that are required to be filed.The amount of Service Tax Payable periodically, shall totally depend on your Turnover of Services. This is the real amount of tax that you are paying to the government. There shouldn't be any charges here, just the real amount.There is no mandatory Service Tax Audits to be done by Chartered Accountants. Audits in Service Tax are conducted by Service Tax department only suo moto.At the time of Audit, whatever will be the charges/expenses, the department will notify you about the same. This is a very rare form of audit and only large corporates are generally audited.Factors that affect the Variations in Fees:Your turnover - Higher the turnover, higher the fees.Complexity of your business - Rareness of nature of business - e.g. E-commerce businesses are generally charged a little higher.City you live in - higher in metros & lower in smaller cities.Size of CA Firm - Large CA firms will charge more, smaller firms will charge less. Size is in terms of scale of operations & number of clients.Estimated Fees -Note: The following rates are estimated rates for your specific situation only, the charges varies according to the factors given above.Registration - Minimum of Rs. 5,000/- Maximum of Rs. 25,000/-. If you are asked to pay anything below Rs. 10,000/- that should be reasonable. Expenses in relation to registration (like bribe) and also for creating Digital Signature, (if required in your case) shall be separately charged. You will also be charged fees separately for creating Digital signature. Fees for digital signature totally (inclusive of expenses & fees) costs you maximum Rs. 1,500/- (for 1 year DSC)Returns - Minimum of Rs. 500/- per return and Maximum up to Rs. 20,000 per return at later stages. If you are asked to pay around Rs. 1,000 to Rs. 3,000 per return at initial stages, that shall be reasonable. At later stages it shall surely increase, say after one year or two years, it will parallel to your business growth.Tax Payment - Free of cost. Generally Chartered Accountants do not charge for payment of service tax on your behalf, if they are charging you, it is better that you change the Chartered Accountant itself. This task is just like screw tightening.Estimated Tax Liability -Output Tax Less Input Tax i.e. (Total turnover of your services * 14 %) Less (Total Service Tax that you have paid on various services taken from your vendor for e.g. check telephone bills, recruitment bills, Chartered Accountant's bills etc.)This is just an estimated and not the exact amount.Documents to be collected -Original copy of Registration CertificateChallans of every Tax PaymentBill for every service chargesDebit note for every out of pocket expensesAcknowledgement of Return filed after every return has been filed.