EXEMPTION TO CA/CS/CWA SERVICES -
NOTIFICATION NO. 25 / 2006-SERVICE TAX, DATED 13-7-2006

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]

SERVICE TAX EXEMPTION ON SERVICES PROVIDED
BY CHARTERED ACCOUNTANTS,
COST ACCOUNTANTS AND COMPANY
SECRETARIES - PIB PRESS RELEASE, DATED 13-7-2006

The Central Government has exempted from levy of service tax, services provided by a practising Chartered Accountant/Cost Accountant/Company Secretary, 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. In this regard, a notification No. 25/2006-Service Tax, has been issued today i.e. July 13, 2006.

Service tax is leviable on all the services provided by a practising Chartered Accountant/Cost Accountant/Company Secretary to a client with effect from 1.3.2006.

Representations have been received from the Institute of Chartered Accountants of India, the Institute of Cost and Works Accountants of India and the Association of Company Secretaries of India requesting the Government to consider exemption from levy of service tax on certain specified services provided by them which are also provided by other professionals and those other professionals providing similar services are not taxable. It has been stated that such an exemption is required till such time other professionals providing similar services are also taxed.

Government has considered the representations. Taking into account the views expressed by the Institutes and the Association and the other material facts, Government has exempted from levy of service tax only representational services provided to a client by a practising Chartered Accountant/Cost Accountant/Company Secretary to appear before a statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice.