Govt withdrawn exemption on service provided by CA, CS, CWA related to  representation of client before any statutory authority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The above Notification has been rescinded with effect from 1 May 2011.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provided to CAs, CWAs and CSs vide notification No. 25/2006-ST, dated 13-7-2006 for Representation  services is being withdrawn by Notification No.32/2011 – Service Tax , dated April 25, 2011.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 13th July, 2006 , published in the Gazette of India, Extraordinary, Part II, Section3, Sub-section (i) vide number G.S.R. 418(E) dated the 13th July, 2006, except as respects things done or omitted to be done before such rescission.

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

[F. No. 334/3/ 2011 – TRU]

(Sanjeev Kumar Singh)

Under Secretary to the Government of India

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Category : Service Tax (3366)
Type : Notifications (15808) Notifications/Circulars (31842)

0 responses to “No exemption on statutory representation service provided by CA, CS, CWA”

  1. Mohit Tayal says:

    Please clarify

  2. Mohit Tayal says:

    Whether individual CA is exempted by the notification 25/2006 or firm of CA’s is also exempted because nowadays, Department is asking for Service Tax on representation services provided by CA firm as it is written as ” a practising CA”.

    They are putting emphasis on “a”.

    Please clarify.

  3. S.Santhanakrishnan, Chennai says:

    When the notification in 2006 issued, the justification is that as it is level playing field when legal profession is exempted, CA’s/CS/CWA shall also be exempted.
    When lawyers still enjoys the exemption, how the level playing field is now justified. What these CA/CS/CWA institutes are doing ? In this Country, unless you shout loud, no justice will be rendered in any of the Govt’s Dept.,

  4. mahadevan says:

    This puts the CA,CS & CWA on par with practicing Advocates.

  5. CA Ashish says:

    This is not done. Advocates do not pay but now CA/CS/ICWA will have to pay service tax on same services.

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