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 :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES :: articles on VAT and GST in India :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: list of goods taxed at 4% :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
 
 
News Headlines »
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns

TN Chamber calls for reducing rate of service tax
January, 08th 2007
`No rationale behind continuous expansion of tax base'

The Tamil Nadu Chamber of Commerce and Industry, while reacting to the Union Government's proposal to bring doctors, lawyers and cine actors under the service tax net, has observed that the tax measure, introduced in 1994 with levy on just three services, has become so exhaustive now that it would be better for the Government to announce a negative list instead.

Originally fixed at 5 per cent, the rate of tax has been raised to 12 per cent and, in addition, an education cess of 2 per cent on the tax amount is made payable.

There is no rationale or any perceptible symbiosis between continuous expansion of the schedule of services under the tax net and enhancement of rate of tax.

While widening the tax base, the rate of tax should not be hiked and should be brought down for better compliance to keep the cost of services affordable for the consumers at large. It is necessary that the rate of service tax be immediately reduced at least to 8 per cent, the chamber has pointed out.

Contrary to principle

Referring to yet another anomaly, the chamber said that the levy of service tax on consignors and consignees, who are only service receivers, is contrary to the principle and objective of the levy. To add to the woes of trade and industry, the exemption limit of Rs 4 lakh, available only to lorry transport agencies, is not available to the consignors and consignees and yet, they are liable to pay the tax.

It is also a paradox that the benefit of 75 per cent abatement on gross freight amount is not available to them and for getting it they are required to obtain a declaration from lorry transport agencies in the lorry receipt that the said agencies had not availed themselves of any Cenvat credit. Many agencies do not provide as such or refuse to do so.

The chamber said that while the manufacturers would be able to set off the services tax paid by them towards lorry freight charges from the Central Excise duty payable by them, the traders, on the other hand, are deprived of the benefit as they are not assessees under the Excise net.

It is imperative that the Union Finance Ministry come forward and exempt consignors and consignees from this unjustified levy of service tax on lorry freight charges or at least remove partnership firms from this levy with immediate effect, the chamber said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-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