Govt withdrawn exemption on service provided by CA, CS, CWA related to representation of client before any statutory authority

Services provided or to be provided by practicing professionals, i.e.  chartered accountants, cost accountants and company secretaries respectively, in their   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, were exempted from service tax vide Notification No. 25/2006, dated 13 July, 2006.

The above Notification has been rescinded with effect from 1 May 2011. As such, the above services have become taxable from 1 May 2011.

With the amendments coming into force, exemption provided to CAs, CWAs and CSs vide notification No. 25/2006-ST, dated 13-7-2006 for Representation  services is being withdrawn by Notification No.32/2011 – Service Tax , dated April 25, 2011.

New Delhi, the 25th April, 2011

Notification No.32/2011 – Service Tax

G.S.R. -(E).-  In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2006-Service Tax, dated the 13^th July, 2006 (Reproduced below), published in the Gazette of India, Extraordinary, Part II, Section3, Sub-section (i) vide number G.S.R. 418(E) dated the 13^th July, 2006, except as respects things done or omitted to be done before such rescission.

2.         This notification shall come into force on the 1^st day of May, 2011.

[F. No. 334/3/ 2011 – TRU]

(Sanjeev Kumar Singh)

Under Secretary to the Government of India

______________________________________

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]

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