With the Goods and Services Tax (GST) in effect from July 1, Chartered Accountants and tax consultants across the country have hiked their fees.
GST impact on Chartered Accountants, tax consultants: With the Goods and Services Tax (GST) in effect from July 1, Chartered Accountants and tax consultants across the country have hiked their fees, reported the Indian Express. The charges have been increased by 15 per cent for small businesses and 30 per cent for big businesses due to increased tax filings and compliance. Viren Shah, president of Federation of Retail Traders Welfare Association told the Indian Express that compliance cost will fall on struggling traders who have not yet understood the tax reform. Shah’s association represents about 2 lakh shop-owners in Mumbai and 96 per cent traders in Maharashtra. Tax consultants started making an impact analysis report after the GST for the companies and the retainer fee has gone up considerably. GST will procure an additional sum of Rs 15,000 crore in consulting fees, according to the Institute of Chartered Accountants of India. All this due to the GST that has brought in complexities into the tax returns, for they will now be filed thrice every month.
Other additions are reverse charge transactions and the introduction of TDS and TCS to the mix, Amit Maheshwari of the CA firm, Ashok Maheshwary & Associates LLP told the Indian Express. Law and tax consultancy firms have expanded their GST teams with retired government officials who have the knowledge of indirect taxes for advisory roles, according to the Indian Express. Consultants have found an opportunity with the change as they are being hired by companies to migrate to the new system smoothly. Consultancy firms, CAs and tax professionals have enough to rejoice at this juncture.