The Institute of Chartered Accountants of India (ICAI) has disclosed that a ₹157.97 crore service tax dispute continues to remain pending before the Delhi High Court, according to its 77th Annual Report and Audited Financial Statements for FY 2025-26.
The Annual Report states that during the financial year 2018-19, ICAI received two Show Cause Notices (SCNs) from the Directorate General of GST Intelligence (DGGI), earlier known as the Directorate General of Central Excise Intelligence (DGCEI), involving an aggregate demand of ₹157.97 crore.
According to the disclosure, the notices relate to the levy of service tax on annual membership fees, Certificate of Practice (COP) fees, entrance fees, seminar fees, coaching class fees and certain other receipts collected by the Institute.
ICAI has stated in its audited financial statements that it does not agree with the demands raised in the Show Cause Notices and has challenged the matter by filing a writ petition before the Hon'ble Delhi High Court. The Annual Report further notes that the case is being listed before the Court from time to time and continues to remain pending.
The disclosure forms part of the Contingent Liabilities and Commitments section of the audited financial statements. Importantly, the Annual Report does not state that the demand has been confirmed, nor does it indicate that ICAI has accepted the liability. The matter is currently sub judice before the Delhi High Court.
The disclosure is intended to inform members and stakeholders about the status of the ongoing litigation and should not be construed as a final determination of tax liability. The outcome of the case will depend on the final decision of the Delhi High Court. CA Sansaar
This is a fact-based financial disclosure, not a controversy. The story should be presented as an informative analysis of the audited accounts rather than implying that the expenditure was excessive or unjustified, because the Annual Report itself does not make such an assessment.