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: due date for vat payment :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS
« Service Tax »
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses
 GST to subsume over a dozen Central, State taxes
 Incidence of indirect taxes won't go up under GST
 Advanced Budget date: Absence of a GST rate may present estimation challenges
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant

Service tax field offices quadrupled to boost revenue
November, 06th 2014

To boost tax revenue from the services sector, which now accounts for more than half of the country’s $1.8-trillion economy, the government has raised the number of large field offices — commissionerates — exclusively dealing with service tax nearly fourfold to 23.

According to sources, creation of most of these additional posts (each will be aided by about 400 supporting staff) is more or less complete and orders about filling of vacancies have been issued to directors general and chief commissioners handling indirect taxes.

With this, Mumbai — which accounts for about half of the service tax receipts — will have seven commissionerates exclusively dealing with this tax, while Chennai and Delhi will have four each.

This is a substantial increase from the six such offices the country so far had in six major cities including Kolkata, Ahmedabad and Bangalore. The idea is to have one commissionerate for every 15,000 taxpayers, an official source said.

The finance ministry has been gradually increasing the rate of service tax as well as its coverage, which led to its share in the overall indirect tax receipts expanding sharply over the years. For example, online advertisements that were brought into the service tax net from October 1, 2014, are expected to add about Rs 400 crore to service tax receipts in a year. The government may further prune exemptions and the items in a negative list of services that are specifically excluded from this tax as the country embraces a goods and services tax.

Service tax, introduced in 1994, had witnessed exponential rate of growth initially, but this has moderated over the years although it is still faster than the growth in excise and customs duty receipts.

Tax collection from services, which in 2003-04 had shown a 91% annual growth to Rs 7,890 crore and had accounted for just 5% of total indirect tax receipts, is projected to grow at 30% this fiscal to Rs 2.2 lakh crore or 35% of the overall indirect tax proceeds. Service tax is also projected to exceed the receipts from excise and customs duties by a small margin this fiscal.

In the initial months of this fiscal, service tax collection had shown a spectacular growth of about 25% but has slowed down recently. In the April-September period, receipts from this category expanded by 13%.

Sources said that deployment of a field force for service tax would be more in cities, while the same for excise duty would be more in other areas in line with the changes in the trends in economic activity.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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