Service tax on Chartered Accountant

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2010 Please, let me know in which manner Service tax is applicable on Practicing Chartered Accountants. Is their any change during 2009 Notification regarding this.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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17 September 2010 Yes CA liable to cahrge service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2010 but sir last year (2009) their was news that service tax has been removed from Chartered Accountans.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2010 but sir last year (2009) their was news that service tax applicability has been removed from Chartered Accountans.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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17 September 2010 Could you state supporting with any notification as there is none.

Only exemption is there in case of representation before any statutory authorities.

Exemption from Service Tax for CA/CS/CWAs
Saturday, 15 July , 2006, 10:22
Vide Notification No:25/2006- SERVICE TAX, DATED 13-7-2006, exemption from Service Tax has been granted to Chartered Accountants/Cost Accountants/Company Secretaries in respect of services provided to a client relating to representation before statutory authorities in the course of proceedings initiated under any law for the time being in force. The text of the circular is given below:

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services falling under sub-clauses (s), (t) and (u) of clause (105) of section 65 of the Finance Act, provided or to be provided by a practicing chartered accountant, a practicing cost accountant and a practicing company secretary respectively, in his professional capacity, to a client, relating to representing the client before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice, from the whole of service tax leviable thereon under section 66 of the said Finance Act.

[F. No. 356/37/2006-TRU]