Scientific or Technical Consultancy – It refers to any advice, consultancy, or scientific or technical assistance rendered in any manner, either directly or indirectly, by a scientist or a technocrat or any science or technology institution or organization, to any person, in one or more disciplines of science or technology.

Date from which such service is taxable – 16^th July, 2001

Service provider – A scientist, a technocrat, any science/ technology institution/ organization

Service receiver – Any person

Scope of taxable services – Any service provided or to be provided to any person, by a scientist or a technocrat, or any science or technology institution or organization, in relation to scientific or technical consultancy.

Services not covered:

• No tax on medical services – Service tax is not payable (a) by doctors, medical colleges, nursing homes, hospitals, diagnostic and pathological labs etc as they are not known as scientists, technocrats etc. (b) Testing services are not covered, unless it is an integral part of consultancy.
• Foreign technical collaboration not taxable – Scientific or technical consultancy is taxable only if it is provided by a scientist or a technocrat, or any science or technology institution or organization. The services provided by foreign technical collaboration cannot fall under this category, as they are none of these.
• Executory services – Executory services will not fall under ‘consultancy services’ and hence are not taxable as consultancy services.
• Sale of technology is not technical consultancy – Sale of technology does not fall under the technical services category and hence not covered here.

Application of Social Sciences – Application of social sciences is not scientific or consulting engineering services and hence not covered under this category.

It is also to be kept in mind that this service is distinct from the Legal Consultancy Services.