Opportunities in Service Tax

MYTHSimplicity in the legislations(Negative List)

will reduce the opportunities in practice- Is it simple?

Practice is monotonous/traditional works- CA seen as business advisor?

Less remunerative in the initial stages – Maybe Yes- long term – satisfying, comfortable

Each generation goes further than the generation preceding it, because it stands on the shoulders of that generation. You will have opportunities beyond anything you've ever known.

Ronald Reagan- Former US President

IFAC- International Federation of Accountants- Role of a Professional

Creator of Value

By taking leadership roles in the design and implementation of strategies, policies, plans, structures, and governance measures that set the course for delivering sustainable value creation.

-> What model? LTU, SEZ, Thru JW-> Where located?-> Tax Optimisation

Enabler of ValueBy informing and guiding managerial and

operational decision making and implementation of strategy for achieving sustainable value creation, and the planning, monitoring, and improvement of supporting processes.

-> SOP for IDT: Internal control-> Technology usage-> Training of employees-> Hand Holding in Implementation period

Preserver of Value

By ensuring the protection of a sustainable value creation strategy against strategic, operational, and financial risks, and ensuring compliance with regulations, standards, and good practices.

-> Internal / operational/ management audit to include IDT

-> Plan for changing laws-> Disclosure of facts- no surprises

Reporter of Value

By enabling the transparent communication of the delivery of sustainable value to stakeholders.

-> Credibility of Financial Statements- > Quarterly reporting-> Independent Authentic certification

Service Tax in IndiaIndirect Taxes as a Subject – Not a part of the

CA Curriculum until 1996

Limited number of professionals in this area

Considering the above, Exposure to present student is very limited during the internship period

Attest Function- Traditional – reducing year on year

Service TaxLevy of 1994Started with 3 ServicesTill date- More than 130 types of services

covered under the ambit of Service taxNegative List to be introducedAdditional Revenue from ST- Approx 19000

CroresGST expected in 2014? Are we ready?

General Areas of Practice

Registration procedures Initial disclosures/ procedures to the dept.Payment of duty/taxesPeriodical return verification and submissionPeriodical review of STReview of the above before departmental

audit

Specialized Area of PracticeProviding opinions/clarificationsTransaction StructuringImpact on the changes-budget, notifications,

case lawsObtaining refundsRectification of errors made earlier

Specialized Area of PracticeReply to the departmental letterReply to the Show cause noticeLitigation- Representation before

adjudicating authorityReply and representation at appellate forumsAssistance to lawyers at High Court/Supreme

Court

Reaching Expertise Level?Teaching the SubjectWriting articles/booksBeing a speaker to other members in the

industry/departmental officials

ChallengesFast Changing area of practice

Continual updating required

Requires an INDEPTH knowledge of the subject

With GST proposed to be implemented, transition to GST will be a great challenge.

Formulae to success Quality ServicesAppropriate feesFollowing ethical standards

“Success is, when preparation meets Opportunity”

Thank You…