How Much Can a CA Charge for a Tax Audit? Know ICAI's Minimum Fee

The fees charged by Chartered Accountants ( CAs ) for tax audit and other assignments in India are guided by recommendations from the Institute of Chartered Accountants of India ( ICAI ). While these fees are not mandatory, they serve as a benchmark to ensure fair compensation within the profession.

ICAI has prescribed a minimum recommended fee structure for tax audits, which varies based on the city classification (Class A, B, or C) and the complexity of the work. As per the latest guidelines:

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Rate per day : Depends on the complexity of work and the number of days required to work

	Class ‘A’ Cities (Rs.)	Class ‘B’ Cities (Rs.)	Class ‘C’ Cities (Rs.)
(i) Principal	18,000/- & above per day	12,000/- & above per day	8,000/- & above per day
(ii) Qualified assistants	10000/- & above per day	7,000/- & above per day	5,000/- & above per day
(iii) Semi qualified assistants	5,000/- & above per day	4,000/- & above per day	3,000/- & above per day
(iv) Other Assistants	3,000/- & above per day	2,000/- & above per day	1,000/- & above per day

Subject to Minimum indicative Fees as under:

	Class ‘A’ Cities (Rs.)	Class ‘B’ Cities (Rs.)	Class ‘C’ Cities (Rs.)
(i) Tax audit	40,000/- & above	30,000/- & above	22,000/- & above
(ii) Company audit
(a) Small Pvt. Ltd. Co. (Turnover upto Rs. 2 crores)	50,000/- & above	35,000/- & above	25,000/- & above
(b) Medium Pvt. Ltd. Co./ Public Ltd Co.	80,000/- & above	55,000/- & above	35,000/- & above
(c) Large Pvt. Ltd. Co./ Public	Fees to be charged depending on the complexity and the time spent on the particular assignment.	Fees to be charged depending on the complexity and the time spent on the particular assignment.	Fees to be charged depending on the complexity and the time spent on the particular assignment.
(iii) Review of TDS Compliance	25,000/- & above	18,000/- & above	12,000/- & above
(iv) Transfer pricing audit	Fees to be charged depending on the complexity and the time spent on the particular assignment.	Fees to be charged depending on the complexity and the time spent on the particular assignment.	Fees to be charged depending on the complexity and the time spent on the particular assignment.

The abovementioned fees are as per the guidelines of the ICAI on minimum fee requirement. However, there is no restriction on the CAs to charge according to their standards. These are the minimum and standard fee set by the ICAI on audits and other assignments.

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How Are These Fees Determined?

The ICAI’s minimum fee recommendations are formulated after considering various factors. One such factor is the complexity and scope of the audit assignment. Audits involving multiple branches, subsidiaries, or cross-border transactions are inherently more intricate and therefore attract higher fees.

Another important consideration is the time and level of expertise required for the audit. In many cases, fees are calculated on a per-day basis, with distinct rates applicable to principals, qualified assistants, and semi-qualified staff. For instance, in Class A cities, the per-day charge for a principal is ₹18,000 and above.

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Location also significantly impacts the fee structure, with higher charges prevailing in metropolitan (Class A) cities due to increased operational and overhead costs.

Lastly, the nature of the client plays a role—larger entities or those with complex financial structures generally attract higher audit fees in line with the scale and depth of the audit required.

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