| Q.1 |
Who is practicing
Chartered Accountant ? |
| Ans. |
"practicing Chartered
Accountant" is a person who is a member of the Institute
of Chartered Accountants of India and is holding a certificate
of practice granted under the provisions of the Chartered Accountants
Act, 1949 and includes any concern engaged in rendering services
in the field of chartered accountancy. |
| Q.2 |
What is the taxable
service in case of practicing Chartered Accountant? |
| Ans. |
Taxable service means
any service provided to a client, by a practicing chartered
accountant in his professional capacity, in any manner. |
| Q.3 |
What is the value
of the taxable service in case of practicing Chartered Accountant? |
| Ans. |
Value of the taxable
service in relation to the service provided by a practicing
chartered accountant to a client, is the gross amount charged
by such accountant from the client for services rendered in
professional capacity in any manner.
The nature and scope of the services rendered by the chartered
accountants are delineated under the respective enactments and
the rules and regulations made there under. The services rendered
by such professionals are of a specified nature and are provided
by virtue of their professional experience and specialized education.
|
| Q.4 |
Who is a practicing
Cost Accountant ? |
| Ans. |
A "practicing Cost
Accountant" is a person, who is a member of the Institute of
Cost and Works Accountants of India and is holding a certificate
of practice granted under the provisions of the Cost and Works
Accountant Act, 1959 and includes any concern engaged in rendering
services in the field of cost accountancy. |
| Q.5 |
What is the taxable
service in case of practicing Cost Accountant? |
| Ans. |
Taxable service means
any service provided to a client, by a practicing cost accountant
in his professional capacity, in any manner. |
| Q.6 |
What is the value
of the taxable service in case of practicing Cost Accountant? |
| Ans. |
Value of the taxable
service in relation to the service provided by a practicing
cost accountant to a client, is the gross amount charged by
such accountant from the client for services rendered in professional
capacity in any manner. |
| Q.7 |
Who is practicing
Company Secretary? |
| Ans. |
"practicing Company
Secretary" is a person who is a member of the Institute of Company
Secretaries of India and is holding a certificate of practice
granted under the provisions of the Company Secretaries Act,
1980 and includes any concern engaged in rendering services
in the field of company secretary ship. |
| Q.8 |
What is the taxable
service in case of practicing Company Secretary? |
| Ans |
Taxable service means
any service provided to a client, by a practicing company secretary
in his professional capacity, in any manner. |
| Q.9 |
What is the value
of the taxable service in case of practicing Company Secretary? |
| Ans. |
Value of the taxable
service in relation to the service provided by a practicing
company secretary to a client, is the gross amount charged by
such secretary from the client for services rendered in professional
capacity in any manner. |
| Q.10 |
Whether all types
of services provided by a practicing Chartered Accountant, practicing
Cost Accountant and practicing Company Secretary would be liable
for payment of Service tax? |
| Ans. |
The services, which
are provided by practicing Chartered Accountant, a practicing
Cost Accountant or Company Secretaries in their professional
capacity to a client and are rendered by them either exclusively
or are common to their profession, are liable for payment of
service tax. These are -
-
accounting and auditing; or
-
cost accounting and cost auditing; or
-
secretarial auditing; or
-
verification of declarations in prescribed forms of
compliance's for obtaining a Certificate of commencement
of business or commencement of other business under section
149 of the companies Act, 1956 ( 1 of 1956); or
-
signing of the annual return of listed companies under
section 161 of the companies act, 1956( 1 of 1956) ; or
-
certification that requirement of Schedule XIII to
the Companies Act, 1956 (1of 1956) have been complied
with as regards statutory guidelines for appointment of
managerial personnel and payment of managerial remuneration
to them without the approval of the Central Government
under Section 269 and Schedule XIII of the Companies Act,
1956( 1 of 1956) ; or
-
Certification of documents to be filed by Companies
with the registrar of Companies under Companies Act, 1956(1
of 1956); or
-
Certification in Form 1 that the whole of the amount
remaining unpaid or unclaimed for a period of three years
from the date of transfer to the special account under
sub-section (1) and sub-section (2) of section 205A of
the Companies Act, 1956 (1 of 1956) has been transferred
to the General Revenue Account of the Central Government
under the Companies unpaid Dividend ( Transfer to General
revenue Account of the Central Government ) rules, 1978;
or
-
Certification of documents under the Exports and Imports
Policy ( 1997-2002) of the Government of India; or
-
Certification for exchange control purposes which a
practicing chartered accountant can issue as documentary
evidence in support of certain applications under the
Foreign Exchange Regulation Act, 1973 (46 of 1973); or
-
Certification in respect of valuation of instrument
or assets as per rule 8A (7) of the wealth tax rules,
1957
Thus, in case any of the above mentioned services are rendered
to a client by either a practicing chartered accountant or a
practicing company secretary or a practicing cost accountant
, the same would attract service tax. For example, Certification
services for exchange control purposes provided by a practicing
chartered accountant or a practicing company secretary or a
practicing cost accountant under the Foreign Exchange Regulation
Act, 1973 to a client shall attract service tax. Similarly in
a case where services of accounting or auditing or costing or
certification related thereto are provided by a practicing chartered
accountant or a practicing company secretary or a practicing
cost accountant, the same shall attract service tax. Another
example are the cases where a practicing chartered accountant
or a practicing company secretary or a practicing cost accountant
provides services to a client of appearing before the Foreign
Exchange Appellate tribunal or the Income Tax Appellate Tribunal
as his authorized representative. He shall be exempt from paying
service tax on such services to the client, as the service in
question is not covered in the list of services mentioned above. |
| Q.11 |
Are any services
provided by the Practicing Chartered Accountant practicing company
secretary or a practicing cost accountant exempted from payment
of service tax? |
| Ans. |
Yes, the services other
than those mentioned in answer to question 3 are exempted from
payment of Service tax.
( Authority :- Notification no. 59/98 ST dated 16/10/98) |
