Financial Daily from THE HINDU group of publications
Sunday, Feb 13, 2005
Financial Daily from THE HINDU group of publications Sunday, Feb 13, 2005 |
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Industry & Economy
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Budget Co secretaries seek tax sops in Budget for export of services Richa Mishra
New Delhi , Feb. 12 TO enjoy the benefits of liberalised economy, the company secretary professionals are looking for various tax concessions in the forthcoming Budget, including restoration of benefits available on export of such services. The opening up of services sector will also unfold opportunities for the professionals such as the company secretaries, chartered accountants, and cost accountants to export professional services. India possesses an avalanche of professional and services talent and Mode 4 of the General Agreement on Trade in Services is likely to be the most popular mode for export of Indian professional services, sources explained. "Various tax exemptions are the call of the day for the Indian professional services. One measure would be to restore 50 per cent deduction that was available on export of professional services to the extent of convertible foreign currency brought in through such exports," officials at the Institute of Company Secretaries of India (ICSI) said. Further, it is essential that 100 per cent export oriented unit concept be brought in the arena of professional services, officials said. Explaining further, they stated, 100 per cent EOUs for company secretarial and chartered accountant services may be created with relevant income-tax and indirect tax benefits to them on the same lines as units in software technology park. This would enable such professionals to form partnerships or open proprietary EOU units with a thrust on export market. However, no part of the services rendered by such EOUs should be allowed in the domestic market, sources said. The professionals have also sought inclusion of the practicing company secretaries, chartered accountants and cost accountants for issuing service tax compliance certificate to the department concerned. A Service Tax Compliance Certificate by a competent independent professional will assure to the revenue authorities that assessees responsible for collection and payment of service tax have complied with all the legal provisions and that there is no avoidance of service tax, they explained. Further, a number of requests have been received by the institute from its members regarding taxable services provided by company secretaries in practice and difficulties faced by them in implementation of the said amended notification. All the services rendered by practising company secretaries are a separate and distinct class of services. All such services such as management consultancy services rendered by company secretaries except the services specifically listed under the original notification should be exempted from service tax.
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