Whether the activity of data processing work and maintenance of billing and accounting work on monthly/bimonthly basis of specified area is falling within the purview of "Taxable Services Provided by a Practicing Chartered Accountant" category.

This question was dealt by the CESTAT in the recent matter reported in (2008 -TMI - 3452 - CESTAT, SOUTH ZONAL BENCH, BANGALORE). In this case, tribunal held that,

The activity is carried out even by non CAs and it is done by unskilled employees who are employed on contract basis. The activity is not carried out in the course of duties to be performed by a CA.

Therefore, demand is not sustainable. 

(For full text of judgment visit - 2008 -TMI - 3452 - CESTAT, SOUTH ZONAL BENCH, BANGALORE)

Taxable services by chartered accountants: data processing and outsourced billing not treated as professional CA services. Outsourced data processing and routine monthly/bimonthly billing and accounting performed by contract, unskilled personnel are not regarded as duties of a practicing chartered accountant; because the tasks are commonly executed by non CAs and lack the professional character of CA functions, they fall outside the scope of Taxable Services Provided by a Practicing Chartered Accountant and a tax demand based on that classification was found unsustainable.