Service Tax: ICAI flays withdrawal of notification

THE INSTITUTE of Chartered Accountants of India (ICAI) reacted sharply to the withdrawal of notification no. 59/98 related to service tax. The notification exempted the services, accounting, company secretary or cost accountant from the levy of service tax.

THE INSTITUTE of Chartered Accountants of India (ICAI) reacted sharply to the withdrawal of notification no. 59/98 related to service tax. The notification exempted the services, accounting, company secretary or cost accountant from the levy of service tax.

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President of the ICAI TN Manoharan said that this step was retrograde and discriminatory in nature.

It would affect the level playing field, as the advocates, the income tax and the sales tax practitioners were not required to pay any service tax on the legal and taxation services rendered by them, he said.

Manoharan further stated that the institute would vigorously take up the matter with the finance ministry, government of India to reconsider the decision to withdraw this notification.

Though, Manoharan appreciated the Budget, calling it another step forward in furthering the economic reforms. He said Budget provides the parameters of growth, stability and equity.

The Budget gives appropriate thrust to infrastructure, agriculture and social sector. On the energy sector, the he said that the importance of power sector has been duly recognised by focusing on ultra mega power projects and reforms in transmission and distribution.Manoharan also welcomed the measures to rationalise the levy of fringe benefit tax.