A tax advocates' forum has approached finance minister P Chidambaram seeking clarity on the definition of "works contract services" as well as simplification of procedures for determining valuation of such services for calculation of service tax.
The All-India Tax Advocates Forum (AITAF) has said that after the introduction of the negative list of services by the government, there is utter confusion as various state governments have kept certain services out of the taxation net. For instance, photocopy, dyeing and printing though considered as work contract under the Delhi VAT rules, many states still have not included them under such definition.
"This is bound to create lot of confusions in regard to administration of service tax," the AITAF pointed out. A press note from the forum said as the country is moving towards Goods and Services Tax regime, absolute clarity is needed to various aspects of work contract services.