Audit fee of PF Accounts

[SKDhillon]

Slam to all members,

I want to know that Audit fee of audit of Provident Fund Trust accounts will be charged against the income of P F trust accounts or as an expense of the company

[Dard]

Against income, if available

[SKDhillon]

Thanks sir, I appriciate your reply but most of the Companies in Pakistan has practice to bear the audit fee of Provident Fund (Fund). Though it is against the requirement of IAS 26 but the Provident Fund. Act, 1925 and Providnet Fund Rules in part 1 of sixth schedule of Income Tax Ordinance, 2001 do not specify that audit fee will be charged against the income of Fund. So I think most of the companies give benefit their employees by bearing the audit fee because it is not material for them.