Service tax for professionals

PUNE, Oct 13: Service tax has been imposed on twelve new service — architects, interior decorators, practicising chartered accountants, practicing cost accountants, company secretaries, management consultants, credit rating agencies, underwriters, real estate agents and consultants, security agencies, market research agencies and mechanised slaughter houses, with effect from October 16.

The tax will be levied at the rate of five per cent of the value of taxable services for all services except mechanised slaughter houses who have to pay Rs 100 per animal. The procedure for payment of tax and submission of returns has been simplified for all services on which service tax is being levied including new services. The tax is to be paid only on amount collected on quarterly basis in respect of individuals and partnership firms, and on monthly basis by others. Persons rendering these services should approach the concerned jurisdictional assistant commissioner for obtaining registration under service tax rules, according to an official press release.