The Finance Minister in its budget removed the exemption granted to the CAs/ICWAs and CS from paying the service tax by withdrawing an exemption notification. This action of the Finance Minister raised strong dissent amonst our community of CAs/ICWAs/CSs.
The Chartered Accountants contended that why are they being brought under the ambit of service tax while the doctors and lawyers continue to enjoy the exemption. A huge protests are being raised by the governing bodies of all the three instiutes including its members that the govenment should not be partial in its approach and we should not be taxed. We prayed the the Government to continue the exemption enjoyed by us during the pre-budget era.
It seems that the protests did not land up on deaf ears. Finally Government payed heed to the voices raised by our accountant freinds and the government reacted.
But did it react in a positive direaction??? Did it react the way it was expected to?
Yesterday, Mr P. Chidambaram stated in Rajya Sabha that it would not like the doctors and the lawyers to be a part of “not-to-be-taxed list”. This move shall not be appreciated by the professionals throughout the nation and I personally feel that government should not take such a drastic step and let us continue to enjoy the exemption along with the Doctors and Lawyers.
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I dont agree.. Why the professional services should be kept out of Service Tax Ambit??? Professionals should also contibute to Revenues of government.
On what grounds you feel that professionals should be left untaxed. I endorse the view that all Profesional Service Providers be it Doctors/Lawyers or CAs/CSs/ICWAs should be taxed at uniform rate.