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Sources: Budget 2011-12 may expand service tax net
December, 21st 2010

The government may have missed the deadline for implementation of Goods and Services Tax (GST), but the Finance Ministry may pave the way for its rollout in this budget. CNBC-TV18 learns the government is considering a proposal to integrate excise and service tax and is also looking at expanding the service tax net, reports Aakanksha Sethi.

The service tax net is likely to be expanded in the forthcoming budget, and sectors such as health and education may be considered for a service tax levy.

Currently, around 117 services are taxed at 10%, including the eight new services taxed in budget 2010-11. The service tax and excise duty integration will begin next fiscal year.

An integration of central excise and service tax will lead to a single point of adminstration for the two taxes. The Central Board of Excise and Customs (CBEC) is also considering a lowering of the threshold for central excise from the current Rs 1.5 crore to Rs 10 lakhs.

 
 
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