Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment
 
 
Service Tax »
 100 Opening GST Profiles- Indirect Taxation- ALL Industries
 New Opening Sr. Manager-Indirect Tax For A Leading Power Company
 Tax Collected At Source Under GST Regime
 India's GST challenge makes Donald Trump's tax overhaul look easy
 What does GST hold for Indian youth?
 GST will help India move towards becoming a commercial union
 Friendly advance ruling mechanism to smoothen ride under GST regime
 GST impact: Small businesses could under-report income initially
 The art of doing business under GST
 GST council to debate tax on services, fitment of items on April 18-19
 Online Services – Changes In Service Taxation

Service tax hike on cards but no impact on inflation: CBEC
November, 02nd 2011

Brace yourselves for taxing times. The outgoing chairman of the CBEC says the government may hike services tax rates to plug the revenue gap, reports CNBC-TV18s Aakansha Sethi.

If it is a rate hike it will be from 10-12%. Before the crisis in 2008, the service tax rate was 12% which was brought down to 8% as part of the fiscal stimulus package. Then last year it was taken up to 10% and now the Finance Ministry is again considering increasing it to 12% because this year has been a tough one as far as the fiscal deficit is concerned.

The indirect tax department has revenue foregone of about Rs 49,000 crore on account of cuts in fuel duties. A slowdown in growth has impacted tax collections in September which saw excise declining 8.7% for the first time this year. Overall tax collections grew by about 5.9% in comparison to the previous month where they grew by about 23%.

So faced by the slowdown in indirect taxes and an excess expenditure, overshooting of subsides whether it is oil or fertiliser or bank recapitalisation.

S Dutt Mazumder, Outgoing Chairman, CBEC said, There is lot of opportunity for expansion in Service tax. The service tax rate increase will not have any direct effect on inflation also. This could be an area which may need a look at. Otherwise an excise duty hike, I am not certain about. It will be too early for me to say.

So a hike in service tax will not have an inflationary impact which a hike in excise duty will. Sources in the finance ministry say they are looking at a hike in excise on tobacco and tobacco products and also on diesel-run cars. However, the final decision on both these aspects will be taken only after the data for October is in.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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