CBEC–ICAI tie up for Certified Facilitation Centres for ACES
IN 17.03.2010 we reported that the Finance Minister had approved a proposal to set up Certified Facilitation Centres (CFCs) for ACES throughout India with effect from April 2010 by the Institute of Chartered Accountants of India (ICAI) and that the CBEC was in the process of entering into an MOU with ICAI shortly.
Now this MOU has become a reality. On March 31, 2010, CBEC entered into an MOU with ICAI to facilitate setting up of Certified Facilitation Centres (CFCs) by practising Chartered Accountants and proprietary concern(s)/firm(s) of Chartered Accountants in practice, at various locations throughout the country to facilitate transactions in ACES like e-filing of returns and other documents by assessees of Central Excise and Service Tax.
The salient features of the MOU are as follows:
1. The name of the scheme will be ‘Scheme for Certified Facilitation Centres (CFCs) under the Automation of Central Excise and Service Tax (ACES) Project of CBEC'. The Scheme shall take effect from the 1st of April, 2010 and shall remain valid for an initial period of one year, unless renewed/revised/modified/cancelled earlier.
2. A CFC for ACES is a facility (and has nothing to do with physical front offices or Facilitation Centres of CBEC) which may be set up and operated by a practising Chartered Accountant or a proprietary concern/firm of Chartered Accountants in practice to whom a certificate is issued under the ACES project, where the assessees of Central Excise and Service Tax can avail the facility to file their returns and other documents electronically along with associated facilitation on payment of specified fees .
3. The Certificate of Registration for a CFC under the Scheme will be valid for a period of one year, unless the scheme is modified or withdrawn or the Certificate is suspended or cancelled before that as per the provisions of this scheme.
4. The CFCs should have certain basic physical and technical facilities (infrastructural requirements) and shall also appropriately display the Certificate issued by ICAI in this regard.
5. The CFCs will provide services on payment basis and the service charges shall not exceed the amount indicated in the schedule of charges indicated in the scheme (see table below) and it must prominently display the details of service charges chargeable by the CFC in respect of various services.
6. The CFCs will undertake work on behalf of its client, after obtaining legally valid authorization on behalf of the management of the client, the original copy of which should be kept by the CFC on records for at least a period of five years, or such other period as may be prescribed by CBEC, from time to time, for verification by the authorized persons of CBEC/ICAI.
7. The CFCs can charge the fees for services rendered to their customers at the maximum rates indicated below:
Sr. No. | Service | Rates / Charges |
|---|---|---|
1. | Data Entry of Returns (Filling-up of e-Returns) | Rs. 50/- per page subject to a maximum rate of Rs. 600/- per Return |
2. | Data Entry of Forms other than Returns | Rs. 100/- per page |
3. | Scanning of Documents and conversion to PDF format | Rs. 5/- per page |
4. | Laser Printing (B&W) | Rs. 5/- per page |
5. | Uploading Returns with ACES | Rs. 200/-per return |
6. | Attaching Documents with e-Form | Rs. 1/- per page |
7. | Viewing Documents | Rs. 50/- per 30 minutes |
8. | Apply for and procurement of DSC for users | Rs. 100/- per DSC |
9. | Use of DSC by CFC operator to facilitate e-filling for the client along with Disclaimer | Rs. 20/- for each signature use. |
10. | Services other than those listed above as may be offered by the CFC | At market-driven rates |
The question that immediately cropped up after a quick glance through the MOU is whether the service provided by CFC a taxable service? It appears that the nature of activity undertaken by a CFC under this MOU could be classifiable as BSS. If it is so, why is the MOU silent on this aspect or is it implied that a CFC maintained by a practising Chartered Accountant or a firm of Chartered Accountants would be liable to pay service tax if the said Chartered Accountant or a firm of Chartered Accountants is already registered with the service tax authorities and discharging service tax for the other services rendered by them. If they are liable to pay service tax, will it be regarded as ‘input service' to the assessees who avail the services of CFCs? Will the Board clarify?
And why are CWAs and CSs excluded from this scheme? Let there be equal opportunity for professionals like CAs, CWAs and CSs.