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No rationale in Service tax on CAs
Date 12 Apr 2006
Written By
Debate Over Service Tax on Essential Professionals: Impact on Costs and Fairness in Healthcare and Legal Services
The article criticizes the government's consideration to impose service tax on doctors, lawyers, and chartered accountants, arguing that these professionals provide essential services. It suggests that taxing these services would increase costs for citizens who rely on private healthcare and legal assistance due to inadequate government provision. The author contends that only professionals with gross receipts over Rs. 50 Lakhs should be taxed. The article questions the rationale behind taxing chartered accountants for tax consultancy services while exempting lawyers, and sarcastically suggests a "birth tax" as an alternative revenue source.

In the Press it is stated that "Chidambaram indicated that the government would not like doctors, lawyers and chartered accountants to be part of the "not-to-be-taxed" list."(Refer to "Docs, lawyers may have to pay service Tax" .What a deplorable statement from not less than a Finance Minister. Doctors are providing yeomen services to the mankind. And poor citizens have not been provided adequately by the government, they have no option but to go for private doctors. By levying service tax their bills shall go up. In fact, all services of doctors must be tax free!

Similarly lawyers and chartered accountants services are must to comply with all laws of the land. There are complex laws which an ordinary citizens cannot even understand and it require assistance of lawyers and chartered accountants, since ignorance of law is no excuse, every citizen needs a lawyers and a chartered accountant. So both lawyers and chartered accountants too must not be taxed at all!

If rich category of these professionals is to be taxed than their gross receipts of more than Rs. 50 Lakhs only should be taxable.

It is beyond any logic and understanding that for a single and similar kind of service -tax consultancy- one category -C. As are made taxable bit not the lawyers. What's rationale behind it?

I think this commercial government instead of service tax imposes a birth tax -every child born in India-his parents must pay Rs. 1 crore or child and  his parents should not have right to live in India. Such a provision shall fill the government treasury and or solve population problem.

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