Is a Month Fee of 4000 INR for Filing GST Returns Justified? A Comprehensive Guide

Is a Month Fee of 4000 INR for Filing GST Returns Justified? A Comprehensive Guide

When you hear that your chartered accountant (CA) is charging you 4000 INR every month to file your GST returns for a rental income of 30 lacs per year, the first question that pops up is, ldquo;Is this fee justified?rdquo; To answer this, we need to consider a few key factors:

Turnover and Complexity

With a turnover of 30 lacs per year, amounting to 2.5 lacs per month, your GST compliance requirements might not be overly complex. If your rental income is straightforward, the proceedings might be simple. However, if you have multiple properties or varying types of rental agreements, the complexity can increase significantly.

Typical Fees

The cost of filing GST returns can vary widely, based on several factors including your location, the complexity of your returns, and the CA's experience. Generally, for small businesses, fees range from 1000 to 5000 INR per month. Given your turnover of 30 lacs, a fee at the higher end might seem on the expensive side unless additional services like advisory or extensive bookkeeping are included.

Services Included

It is crucial to check what services are included in the 4000 INR fee. If it covers additional services such as bookkeeping, tax planning, or representation in case of audits, then the fee might be more justified. However, if the CA is solely responsible for filing the returns, it might be more reasonable.

Market Rates

Comparing fees with other CAs in your area can provide valuable insights. If you find that 4000 INR is significantly higher than the market rates for similar services, it might be worth discussing this with your current CA. You can also explore other options to get a better understanding of the market rates.

Quality of Service

Quality of service also plays a crucial role in justifying higher fees. If the CA provides valuable insights, timely filings, and good support, it may warrant the higher fee. Transparency in the services provided and the value for money is key.

Conclusion

While a monthly fee of 4000 INR may be on the higher side for a straightforward rental income scenario, the justification ultimately depends on the complexity of your situation and the value of the services provided. It is worthwhile to discuss your concerns with the CA or seek quotes from other professionals to ensure you are getting fair value for the services provided.

Furthermore, the quantum of fees can vary greatly depending on the location and the stature of the CA firm. Bigger and well-established firms, especially the Big 4, charge higher rates than smaller firms. If the fees being charged seem excessive, it is advisable to talk to the CA and understand the reasons behind the charges. If you are not satisfied, you can always opt for a different professional.