technical inspection and certification"means inspection or examination of goods or process or material o

Indian Service Tax

Technical Inspection and Certification Service

Effective Date

1/7/2003.

Authority

Notification No. 7/2003-ST, dt. 20/6/2003 (For full text see under "Business Auxiliary Service").

Rate of Service Tax

8% upto 9/9/2004. 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definitions

"technical inspection and certification"means inspection or examination of goods or process or material or any immovable property to certify that such goods or process or material or immovable property qualifies or maintains the specified standards, including functionality or utility or quality or safety or any other characteristic or parameters, but does not include any service in relation to inspection and certification of pollution levels; [Section 65(108)]

"technical inspection and certification agency" means any agency or person engaged in providing service in relation to technical inspection and certification; [Section 65 (109)]

Taxable Service

Services provided in relation to technical inspection or certification.

Value of Taxable Service

Gross amount charged for rendering such services Exemption: Inspection and certification of pollution levels.

Person liable to Pay

Any person or agency providing such services.

Head of Account

Tax Collection - 00440249, Other Receipts - 00440250, Deduct Refunds - 00440251.

Main text of Department Circular/Trade Notice

[Para 2.5 of Cir.No. 59/8/2003, dated 20/6/2003]

2.5 Technical Inspection and Certification Services:

A doubt has been raised whether certification given in respect of immovable property should fall under the purview of 'technical inspection and certification services'. In this regard it may be recalled that earlier, CBEC vide its order No. 1/1/2002, dated 26/02/2003, issued under Section 37B (of the Central Excise Act as made applicable to service tax) had clarified that certification given under authority of any code or statute can not be considered as a consulting engineer service. However, the new service included in 2003 budget, namely 'technical inspection and certification services' would cover certification of all types including that of immovable property. Therefore, it is clarified that such services become taxable from the notified date.