Stipend from CA

[Harsh Jindal]

Is stipend received by a student during articleship from CA, liable to Service Tax?

[YAGAY andSUN]

No, it is not liable to service tax.  Threshold limit will come into play.  Please also check the negative list.

[Harsh Jindal]

Thanks Sir,
I have one more doubt. Is there an employer - employee relationship exists between an Article and his CA?

[YAGAY andSUN]

No, since there is a mandate from the CA institute that students who are pursuing CA course must go for an articleship.

[Harsh Jindal]

Thanks Sir

AI Summary

Service tax on stipends during CA articleship: stipends not taxable, contingent on threshold limits and negative list. Stipends paid during CA articleship are not treated as taxable under service tax, subject to threshold limits and applicability of the negative list; the articleship arises from an educational mandate, so no employer-employee relationship exists between the articled student and the CA, framing the stipend as trainee support rather than employment remuneration.