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Chandra gets additional charge of Commerce Secretary ITAT Member N Vasudevan transferred from Mumbai to Bangalore-J Sudhakar Reddy moves from Mumbai to Delhi-IP Bansal from Delhi to Mumbai-IC Sudhir from Pune to Delhi CVD on imported electronics lowered due to higher rates of abatement from RSP notified-Abatement from MRP for excise payment on all electronic products prescribed at uniform rate of 35 per cent-Abatement revised for several products-Central Excise Non-Tariff Notification No.26 Suppliers to Mega Power Projects face silly excise demands-Click on the link below for full details Excise demand of Rs 32 Crore confirmed against Exide for not paying excise on MRP basis on lead acid storage battery RBI says Exporters required to convert 50 per cent of their foreign exchange holdings into Rupee within 15 days-Exporters will be allowed to buy foreign currency only after utilizing all their foreign currency holdings Articles of jewellery exempted from excise duty-Specified Railway Goods manufactured by Government exempted from excise -Central Excise Tariff Notification No.23 Excise on specified Petroleum Oils lowered Eye makeup preparations exempted from excise The excise exemption hitherto admissible on all Hawai Chappals will now be admissible to only Hawai Chappals of RSP up to Rs 500-Polyester staple fibre or polyester filament yarn, manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles exempted from excise-Excise on Motor chassis for vehicles lowered to 14 per cent excise-Excise on LED Lights of Chapter 85 lowered to 6 per cent-Inks for ball point pens exempted from excise-Central Excise Tariff Notification No.24-Parts of Footwear and hawai chappals of RSP not exceeding Rs. 500 per pair exempted from excise if consumed in factory-Central Excise Tariff Notification No.25-Excise exemption to goods required for initial setting up of solar power generation project or facility-Central Excise Tariff Notification No.26 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to sale of unlisted securities in IPO-lower rate of withholding tax of 5% for funding all businesses-FM withdraws the provision for levy of TDS on transfer of immovable property-FM raises the threshold limit for TCS on cash purchases of jewellery to Rs.5 lakh-only serious offences under the customs law involving prohibited goods or duty evasion exceeding Rs.50 lakh, shall be cognizable- all these offences shall be bailable-changes in the definition of “service” which will exclude the activities specified in the Constitution as “deemed sale of goods”-The definition of “works contract” also enlarged to include movable properties- Exemption for specified services relating to agriculture in the Negative List extended to agricultural produce enlarging the scope of the entry Anti-dumping duty on imports of Partially Oriented Yarn, originating in, or exported from China-Customs Notification No.22 Customs duty on import of 806 Products from Japan lowered Anti-dumping duty imposed on import of 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Service Tax not leviable on services by qualified engineers as insurance surveyor and loss assessor

Circular No. 34/2/2001-CX., dated 30-4-2001

F. No. 345/5/2001-TRU

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

I am directed to say that doubts have been raised as to whether the services rendered by qualified engineers as insurance surveyor and loss assessor, would come under the purview of service tax levied on the service provided by the consulting engineers.

The 2. matter has been examined in the Board’s office. As per sub-clause (g) of clause (48) of section 65 of the Finance Act, 1994 as amended, the taxable service in case of consulting engineer has been defined as “any service provided to a client, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering”. Hence the services which will come under the purview of service tax in the category of consulting engineer, will be those rendered in a discipline of engineering, by a qualified engineer or an engineering firm.

Section 64UM of the 3. Insurance Act, 1938, prescribes that any qualified engineer, chartered accountant, cost accountant, actuary, any person holding diploma in relation to insurance from a recognized institute or any technical qualification which may be prescribed, can act as surveyor or loss assessor after obtaining a licence.

It is evident that a 4. number of professionals other than engineers can also be engaged by the insurer for surveying and loss assessments. The very fact that a number of professionals such as Chartered Accountant, Cost Accountant, Actuary, or a person holding diploma in relation to insurance can provide services as surveyors or loss assessor in itself suggest that the service provided by the surveyor or loss assessor is not in the field of engineering. It is a job, which can be performed by an engineer so also by other specified professionals. The function to be performed by the surveyor or the loss assessor is to compute and assess the nature and quantum of loss/valuation of property, which may require basic knowledge of accounting, mathematics and science etc. The services provided by any qualified engineer in the area of insurance survey or loss assessment are therefore not in the nature of services in an engineering discipline. Even as per the WTO classification of services, insurance survey and loss assessment is categorised as insurance auxiliary services and not as “consulting engineer services”.

In view of the facts 5. mentioned above, it is clarified that the term ‘consulting engineer’ as defined in the Service Tax Act, will not include those qualified engineers who act as ‘insurance surveyors and loss assessor’ within its scope and therefore service tax levy on the consulting engineer in any discipline of engineering will not cover the insurance surveying and loss assessment services rendered by a qualified engineer.

Trade and field 6. formations may be advised accordingly.

Receipt of this 7. circular may please be acknowledged.

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