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Service Tax applicability for Professionals like CA, CS, CWA in Limbo

The Department of Revenue, Ministry of Finance vide notification no. 25/2006 dated 13 July 2006 had exempted the professionals ,viz., CS, CWA & CA  from taxable services provided by them in their professional capacity to a client relating to  representation services before any statutory authority in the course of proceedings initiated under any law for the time being in force.

Accordingly, PCS were exempted not to charge service tax on representation services before RoC, RD, CLB, MCA, etc.

The  Department of Revenue, Ministry of Finance,  vide notification no. 32/2001 dated 25 April 2011 effective from 01st May 2011, rescinded the earlier notification no. 25/2006 dated 13 July 2006.

A Writ Petition (CWP No. 4062 of 2011) was filed against (i) The Union of India (ii) The Central Board of Excise and Customs and (iii) The Chief Commissioner, Service Tax in the Hon™ble Delhi High Court challenging the validity of above notification No. 32/2011 dated 25th April 2011.

The Writ Petition came up for hearing on 2nd June, 2011 before a Division Bench of the Hon™ble Delhi High Court (Court No. 1 headed by Hon™ble Chief Justice of Delhi High Court).

The Hon™ble Division Bench of the Delhi High Court heard the learned Counsels on behalf of the Petitioner and the Respondents and directed that the Respondents shall not give effect to the Notification No. 32/2011  dated 25th April 2011 till the next date of hearing.

The case has now been adjourned to 6th September, 2011

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eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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