AUDIT fee PAYABLE 31.03.2018 GST

[Satbir singh wahi]

Sir

Audit fee provision for audit of Books 31.03.2018 . As the accounting system under GST is accrual now for professionals, if clients book audit fee on 31.03.2018,then we have to deposit gst in april 2018. Kindly guide.

[KASTURI SETHI]

In my view, answer is 'yes'.

[Satbir singh wahi]

Sir

whether merely making provision in books would attract GST. pls guide.

[KASTURI SETHI]

For March, 2018, you can deposit GST in April, 2018 depending upon due date of filing returns. Earlier provision of "due tax in March should be paid in March" does not exist in GST era.

Regarding the booking on accrual basis, I have no commerce background.

Other experts may intervene.

[Ganeshan Kalyani]

Professional service is under forward charge. The suppier of service is liable to pay tax. He has provided the service but has not raised the invoice on the recipient and hence the recipient has created a provision in his books. The supplier of service is not liable to pay tax if has time within which he has to arise the invoice otherwise tax is payable. In any case recipient of service is not liable to pay tax on the provision of expense accounted in his books. Thanks.

AI Summary

GST liability on professional services: supplier generally liable; recipient's accrual provision does not trigger tax obligation.
Under the forward charge regime for professional services the supplier is ordinarily liable to pay GST; a recipient's mere accrual provision in its books does not create a tax liability for the recipient. The supplier's obligation to discharge tax is tied to invoice issuance timing and the statutory return-filing/payment schedule, so GST for services of a period may be deposited in the subsequent filing period as per the return due date.