SERIVCE TAX ONCHARTERED ACCOUNTANTS SERVICE
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1.Accounting and Auditing Services;
2.Certification Services
3.Taxation Consultancy including income tax, Service tax and VAT
Consultancy.
4.Consultancy in the matters related to Corporate Governance.
5.Management Consultancy.
6.Consultancy related to Financial Planning and project financing.
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PERIOD
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RATE OF TAX
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16-10-1998 to 13-05-2003
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5%
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14-05-2003 to 9-09-2004
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8%
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10-09-2004 to 17-04-2006
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10%
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17-04-2006 onwards
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12%
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Education Cess
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2+1=3% on service Tax
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Government of India
Ministry of Finance
(Department of Revenue)
***
New Delhi dated the 13th July, 2006.
22 Asadha, 1928 (Saka)
Notification
No. 25 / 2006-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) (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.
(R. Sriram)
Deputy Secretary to the Government of India
[F. No. 356/37/2006-TRU]
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Central Government issued Notification No.25/2006-Service Tax dated 13.7.2006 exempting from levy of service tax services provided by a practicing 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.
Service tax is leviable on all the services provided by a practicing 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 practicing 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.
For details the above-mentioned notification may be referred to.
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The service providers whose aggregate value of service provided during the immediately preceding year does not exceed Rs.10 Lakhs are exempt from service tax in current year up to the receipt of Rs. 10 lakhs. This exemption is not available where the liability of payment of service tax is of persons other service provider. Here in this particular service the liability of payment of service tax is of Service provider hence the exemption is available but this exemption will not be available if the service provider is using the brand name of another person. This exemption is also subject to some conditions on allowability of Cenvat credit during the period of exemption Notification No. 6/2005- Service Tax, dated 1.3.2005 applicable from 1st. April 2005.
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1. Services provided to United Nations States or International Organisations are totally exempt from service tax.
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2. Service provided to developer or units of SEZ are exempt from service tax, subject to certain conditions, are exempt from service tax.
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