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Commerce Ministry suggests service tax and central excise for FY12
February, 18th 2011

The Commerce Ministry has requested the Finance Ministry to combine and rollout service tax and central excise in FY12, reports. It further said that the Finance Ministry should not wait for states to agree on goods and services tax.

The Commerce Ministry has indicated a revenue neutral rate for combined tax. It believes the move will bring down procedural hassles for India and provide a single window mechanism.

The Ministry further suggested tax benefits for skill development for industry. It felt the industry needs additional tax benefits for research and development (R&D).

The Ministry is of the opinion that there should be deductions for skill development in R&D.

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