Monday, August 14, 2006

NO SERVICE TAX ON REPRESENTATION SERVICES OF CAs

The Government recently issued an exemption notification whereby no service tax will be levied on the CAs (Chartered Accontants), company secretaries and cost accountants, if they appear before statutory authorities as a representative of the client in the course of proceedings initiated under any law for the time being in force, by way of issue of notice. Other Services will be taxed as earlier. The discrimination against CAs continue for tax advising, return filing, opinions, due diligence and other legal services. Even accounting and internal audit services by corporates will remain out of the service tax net, whereas CA firms will have to pay service tax on such services. Why the finance ministry is discriminating against the CAs is now to be answered by the Government during the writ petitions pending before several counts. 

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