FW: Service Tax Mischief on CA's - Resolved
Ashish S Bohra
Hello
Please find attached Delhi High Court Judgement dated 01.02.2012, quashing the circular 158/9/2012 ST dated 08.05.2012 and
154/05/2012-ST dated 28.03.2012. Above Circulars were found to be in contrary to Finance Act 1994 and Point of Taxation Rules, 2011.
If the judgment holds good and not appealed against by the department to the Apex court, then all the payments received on or after 01.04.2012, for services (8 specified services, under Rule 7 of POT Rules, 2011, covering Chartered Accountant Service) provided and invoice raised before 01.04.2012, will be chargeable at 10.30% and not 12.36%.
The judgment appears to be helpful. However one may find it extremely difficult to recover / adjust the differential tax already suffered.
Regards
Ashish S. Bohra
Manager - Audit
Gandhi & Gandhi
Chartered Accountants
Hyderabad