« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  Be friendlier with tax payers: FM to IT officials... Govt likely to exempt PSBs from FBT on pension funds... » 12 new services to be in tax net January, 18th 2008 Lower inflation may prompt a rates rise too.   About a dozen new services are likely to be brought under the service tax net from fiscal 2008-09, even as the rate could be increased from 12 per cent.   Last year, the government had considered raising the rate to 14 per cent but the move was shelved on account of fears of inflation, which was ruling at 6.5 per cent in January 2007. TAXING TIMES All unaided non-government schools and colleges, unaided non-government hospitals and amusement parks will be brought under the service tax net To tax all these services, the Finance Act 1994 is expected to be amended in the coming Budget session. An increase in the service tax ambit and possibly the rate is seen as a precursor to the introduction of a dual Goods and Service Tax (GST) from April 2010 onwards. For the week ended December 29, the inflation rate stood at 3.5 per cent, raising the possibility that service tax rates will increase.   The new services likely to be included in the service tax net are legal draft writing and stamp paper vending, all unaided non-government schools and colleges, unaided non-government hospitals, amusement parks and similar attractions, coin-operated amusement machines and other recreation and amusement services.   These six new services have been recommended for inclusion in the list of taxable service by the Empowered Committee of State Finance Ministers from 2007-08 onwards.   Several other services are also likely to be brought under the service tax net, which now covers 100 services.   To tax all these services, the Finance Act 1994 is expected to be amended in the coming Budget session.   A constitutional amendment may also be needed to insert an enabling provision giving state governments powers to levy service tax, a key demand of the states.   "States are already allowed to collect and appropriate service tax. However, they do not have the powers to levy the tax," a government official explained.   An increase in the service tax ambit and possibly the rate is seen as a precursor to the introduction of a dual Goods and Service Tax (GST) at the state and central levels from April 2010 onwards.   Besides getting a 30.5 per cent share from 67 services, states receive the entire revenue from 33 services from 2007-08 as part of a compensation package to phase out central sales tax by 2010.   The central government has also agreed to transfer 44 new services to the states for taxation.