Ministry of Finance has today issued the Notification No.25/2011 – Service Tax amending Point of taxation Rules, 2011. Rules 7 has been substituted by a new Rule whereby, point of taxation in respect specified service providers which includes Chartered Accountants (individuals or proprietary firms or partnership firms) will be the date on which payment is received.
Other Professionals (as listed below) are also exempted from collecting service tax on accrual basis:
· Interior Decorator
· Cost Accountant
· Company Secretary
· Scientific or Technical Consultancy
· Legal Service