In the budget, few service tax notifictaions were withdrawn and Notification No.59/98-Service Tax dated 16.10.1998 was one such notification.
Notification No.59/98-Service Tax dated 16.10.1998 is being rescinded to withdrawexemption for services, other than accounting, auditing, and statutory certification services,provided by a practicing chartered accountant, company secretary or cost accountant so as to levy service tax on all services provided or to be provided by such person in his professionalcapacity.
The efective date for the same shall be 1st March 2006. Does that mean that all the professional fees billed by a practising Chartered Accountant for professional activities carried on by him w.e.f. 1 st March 2006 shall be bearing service tax ???
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Hi Swati,
The implication of the withdrawal is that the legal and taxation services rendered by the chartered accountants will attract 10% service tax plus the applicable surcharge and educational cess on and from 1st March, 2006 and at 12% upon enactment of the Finance Bill, 2006.
CA Gautam Khetan