''practising cost accountant"means a person who is a member of the Institute of Cost and Works Accountants of India

Indian Service Tax

Cost Accountant*

Effective Date: 16/10/1998.

Authority: Notification No. 53/98-ST, dt. 7/10/1998 (for full text of Notification see under'Architect').

Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition

''practising cost accountant"means a person who is a member of the Institute of Cost and Works Accountants of India and is holding a certificate of practice granted under the provisions of the Cost and Works Accountants Act, 1959 (23 of 1959) and includes any concern engaged in rendering services in the field of cost accountancy, [Section 65 (84)]

Taxable Service: Cost Accountant providing service to a client in his professional capacity, in any manner.

Value of taxable service: The gross amount charged by such accountant from the client for services rendered in professional capacity in any manner.

Exemptions

• See Chapter on "General Exemptions"

• Specific exemptions

• Employees

• Services relating to manpower recruitment

Person liable to pay: Practising Cost Accountant.

Head of Account

S1.Code SCCD Minor-head 004400125 Cost Accountant 00440095 Services Sub-head 00440012501 Tax Collection 00440096 117 Sub-head 00440012502 Other Receipts 00440097 114 Sub-head 00440012503 Deduct Refunds 00440098 115

Cost Accountants can conduct special audit under Section 14A (relating to valuation) and Section ]4AA (pertaining to CENVAT Credit) of Central Excise Act, 1944.

Main text of Departmental Circular/TN

[TN No. 116/98-ST, Dated 15-10-1998 of Hyderabad Commissionerate]

[For full text of the Trade Notice see under 'Chartered Accountant'.]

Notification

N.B.:- For full text of Notification No. 59/98-ST, dated 16.10.1998 see under 'Chartered Accountant'.