sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Indirect Tax »
 CBDT notifies new I-T return forms
 Here are the key changes in tax rules to come into effect from today
 GST revenue growth in 2018-19 to match last 10 years’ indirect tax growth, says SBI report
 Things You Should Know Before Filing Your Income Tax Returns (ITR)
 All education loans do not get income tax benefits
 FM Arun Jaitley to focus on direct and indirect taxes
 Income Tax For Individuals – Assessment Year 2019–20
 States set separate dates to implement e-way bill
 What are direct and indirect taxes?
 Indirect transfer conundrum continues
 We expect significant changes in income tax slabs, say taxpayers

Revised CBEC draft cuts tax exempted services to 22
November, 19th 2011

The government's indirect taxes body has released a revised concept paper on taxation of services on the basis of a negative list, making some additions and deletion to the first paper put out in August this year. A lesser 22 services will be under the negative list, or exempt from tax, as against 27 proposed in the earlier draft.

The revised concept paper proposes to exempt from tax healthrelated services, those relating to agriculture, horticulture and animal husbandry and passenger travel by non-AC second-class trains, metro and monorails. India currently specifies the services that will be taxed.

The shift to a negative list will mean that all services except those mentioned in the list will be taxed, providing clarity on services that will be taxed and widening the service tax base. The revised concept paper is open for discussion and comments till 15th December 2011, but the government refused to provide a framework for shifting to the new regime.

"The negative list of services should be implemented immediately or we should wait... it is a matter of debate," chairman of the central board of excise and customs ( CBEC) SK Goel said releasing the list. Services are currently taxed at 10% rate. The negative list also includes include services like funeral, burial and mortuary agencies, interest paid on deposits by bank, services provided by independent journalists, dividend on investments, and transport of passenger in public transport.

The major sectors that remain excluded from services tax are financial sector, education, social welfare services, health and certain notified services provided by the government. All stakeholders have by and large supported the negative list concept and believe these developments are in the right direction. "It is good that efforts are being made to move towards a negative list for service tax.

At this rate I believe that the government maybe able to roll it out by the budget", said DK Srivastava, member of the 12th finance commission and director of madras school of economics. The negative list approach will also help widen the tax base for services.

The services sector constitutes more than 50% of GDP but service taxes are only 4-5% of GDP. "This is good step from the fiscal front but bad for the industry. The incidence of indirect taxes is already very high in the country", said Rajiv Kumar, secretary general of the federation of Indian chambers of commerce and industry, an industry lobby.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions