Audit fees collected by the Comptroller and Auditor General (CAG)

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.... C. NO. IV/16/26/2012 ST (Tech.) Dated: 26.07.2012 SERVICE TAX TRADE NOTICE NO. 06/2012 Subject: Audit fees collected by the Comptroller and Auditor General (CAG) regarding A doubt has been raised whether service tax is leviable on the audit fees collected by the CAG for conducting directly, audit of corporations. Reportedly some field formations are inclined to take a view that such....

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....cording to the Law Lexicon [by Shri P. Ramanatha Aiyar] the expression "concern" means: "an organization or establishment for business". It further elaborates that the word "concern" is a mercantile term. CAG being a constitutional authority cannot be considered as a concern in the same manner as a firm of chartered accountants. CAG is a constitutional, authority and by no stretch of imagination b....

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....from the powers vested in a chartered accountant under the Chartered Accountant Act, 1949. 5. The services of CAG are also not covered by the heading Business Support Services specified in clause (zzzq) of section 65. When the business support services were taxed for the first time in the year 2006, the TRU circular stated as follows: "Business entities outsource a number of services for use....