As per Section 65(31) of Finance Act 1994, consulting engineer is defined to mean any professionally qualified engineer or any body corporate or any other firm which, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering.

Taxable services under Section 65(105)(g) of the Finance Act, 1994 means any service provided or to be provided to a client, by a consulting engineering in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering, including the discipline of computer hardware engineering but excluding the discipline of computer software engineering.

As such, ISO audit and certification is neither an advice, consultancy or technical assistance provided to the client irrespective of the fact whether the service provider is a qualified engineer or not (ISO audit related services can also be rendered by non-engineering professionals).

In CCE vs Sai Global Ltd (2007 11 STJ 87 Cestat, Bangalore), it was held that the activity of certifying the client as an ISO 9001 unit would not come within the definition of consulting engineer’s service as there was no engineering service rendered by the service provider while undertaking the process of ISO certification.

The process only includes visit to client’s units, examination of the management system and ensuring whether the standard requirements are fulfilled. In view of this, it can be firmly said that ISO certification is not a consulting engineer’s service.

SANJIV AGRAWAL

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