03 May 2015
CAG are conducting commercial audit of accounts of Government companies/corporations for which CAG maintains a panel of Chartered Accountants. For such audits, CAG charges fees from concerned companies / corporations. The said services of conducting audit of accounts falls under taxable services of “Practicing Chartered Accountant, Practicing Cost Accountant and Practicing Company Secretary†which is defined under Section 65(105) (s), (t), (u) of the Finance Act, 1994. However CAG is not discharging its service tax liability all over India against said servicesPlease give feedback
03 May 2015
CAG is conducting commercial audit of accounts of Government companies for which the salary of CAG officials are paid by Govt. not the company. For conducting audit of accounts of Govt companies Chartered Accountants are appointed from the panel by CAG for which the audit fees is paid by Govt companies directly to Auditors. Service tax due is paid by Auditors. Under the above circumstances there is no service tax liability on CAG.
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