Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: TDS :: VAT RATES :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
« News Headlines »
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol

Dual tax likely on 'mass use' services
December, 21st 2006
Your visit to the neighbourhood beauty parlour, dry cleaner or a cyber cafe may become cheaper in the next financial year. 
For the first time since the introduction of service tax, the government is seriously considering the introduction of dual tax rates for service tax for beauty parlours, cyber cafes and other services for mass consumption. 
According to sources in the know, under the proposed dual tax system, services for mass consumption and non-Cenvatable services may be taxed at a lower rate of 6 per cent, as compared to the prevailing service tax rate of 12 per cent. 
As per the latest data, service tax collections for fiscal 2006-07 are expected to touch Rs 38,000 crore, higher than the Budget estimate of Rs 34,500 crore. 
Overall, indirect tax collections are expected to be higher by Rs 10,000 to Rs 13,000 crore. Approximately, 80 to 85 per cent of service tax revenue comes from telecom services, stock broking services and the insurance sector. 
This proposal, if it comes through in the forthcoming Budget 2007-08, would prove to be a bonus for consumers. A consumer who now pays a tax of Rs 60 on a Rs 500 bill at the beauty parlour, will have to pay half of that at Rs 30. 
Introduction of dual taxes will also be a politically correct move, since it will be largely welcomed by consumers, sources said. 
Service tax, since 1994, has been levied on all taxable services at a single rate which is 12 per cent at present. 
According to J K Mittal, a tax expert and co-chairman of the expert committee on indirect taxes, dual tax rate is necessitated by the fact that all the taxes have multiple tax rates except for service tax. 
Besides, a single rate for service tax was acceptable when the tax rates were low at 5 or 6 per cent but with the increase in the rates, there is a need to introduce dual tax for services which cannot avail of Cenvat facilities. 
The government increased the service tax rates in the belief that the tax burden will be offset by Cenvat facilities. However, there are still many services which are non-Cenvatable and their contribution to the overall service tax revenue is negligible. It makes sense to have a lower tax rate for these services, Mittal said. 
This year, the demand for dual tax rates was part of the pre-budget proposals of industry chambers. 
Assocham had recommended dual tax rates for services under the argument that taxable services have different commercial value and different utility and therefore there cannot be one tax rate for all the services. 
Assocham had further recommended that for small tax payers who have turnover of up to Rs 25 lakh, summary assessment should be started with lower tax rates without giving Cenvat facilities and the assessee should not be subject to mandatory records and audits.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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