As a chartered accountant, the first question that comes to my mind is how beneficial the GST will be for my practice.
Its not just me but every CA, CWA or tax consultant has same state of mind. Whether GST will have a positive or negative impact on constants earnings?
Before going to provision contained in act, specifically for CA and CWA let's analyse money making services we provide to our clients under existing laws.
As a consultant to companies and small business organizations we provide following services:
These are broad categories of services, as a consultant we provide to our clients. Fee of consultants depended on level of expertisation to level of work involved.
Under GST, consultants will be able to generate good income since the work load will increase and technical know how will further open the doors to new clients.
Success of GST in India is fully depended on technology, as a consultant we have good knowledge of using technology to complete our assignments.
There are various small businesses which are not tech friendly and till date were doing accounting and tax related work manually, however under GST this will not be possible.
As consultant, you will be earning from doing following activities for clients:
These are some basic services that consultants will be providing to their clients. In beginning for few year, there will no assessment cases. So for next few year under GST the major revenue will be generated from above stated activities, however established professionals after few year will start generating revenue from assessments and scrutiny cases.
Every practicing chartered accountant is given a benefit of audits under section 44(AB) of Income Tax Act, 1961. Similarly section 35 of CGST Act, 2017 provides for a compulsory audit.
The audit prescribed under section 35 of CGST Act, 2017 is to be conducted by either a Chartered Accountant or a Cost Accountant.
This revenue stream will begin after successful completion of first year of implementation.
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1 Comment
How much money a tax practitioner or tax consultant can make under GST? This is definitive and good article on possible ways of generating revenue during initial years.
However as the law will mature and more and more complexities will overtake, the experts of this law will make goods earning.
CA and CMA seems to be blessed under this law. Just like income tax audit, compulsory audit is provided.
I think the minimum limit for GST audit will be inline with audit under Income Tax Act.