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: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT Audit :: due date for vat payment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: cpt :: ACCOUNTING STANDARD :: TDS :: articles on VAT and GST in India :: empanelment :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 GST pangs for 3 months only, people will adjust to new way of life soon
 GST, an old new tax
 Pay tax once on the input, deduct it from the output
 GST Network to begin accepting fresh registrations from June 25
 Indian GST is significantly unique, but is it better?
 GST example of national integration
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months

Revenue from service tax to pip custom and excise in FY15
February, 19th 2014

It's finally happened. In keeping with services being the biggest component of the Indian economy, revenue from service tax will for the first time overtake that from excise and customs in 2014-15.

The levy was first introduced in 1994. The government has budgeted Rs 2.15 lakh crore from service tax in 2014-15, ahead of Rs 2.01 lakh crore from customs and Rs 2 lakh crore from central excise.

Three years back, in 2010-11, service tax was just about half the level of these other important indirect taxes that accounted for a nearly a third of total tax collections. Since then service tax has grown at a compounded average annual rate of 31% to cross Rs 2 lakh crore.

The spurt came in 2012-13 when the government shifted to taxation of services on the basis of a negative list. That is, all services were taxed unless specifically excluded. This cleared the confusion over whether a service was taxable or not. Service tax collections rose 36% in 2012-13.

Of course, customs and excise collections have also grown at a slower pace in recent years because of the slowdown in the economy. Lower imports have hit customs collections and subdued manufacturing has eroded excise collections.

Imports barely rose in 2012-13 and were down 7.81% in April-January from a year ago. Manufacturing is set to contract 0.2% in the current fiscal after muted 1.1% growth in the last financial year.

Services were first taxed two decades ago beginning with a 5% levy on telephones, non-life insurance and stock brokers. Currently services are taxed at 12%.

"Over the years, while attempts have been made to widen the base for domestic indirect taxes, the services sector has not been subjected to taxation.

Yet this sector accounts for about 40% of our GDP and is showing strong growth," Manmohan Singh, then finance minister, had said in his 1994-95 budget speech.

The share of services in the economy has since increased to more than 60%. Its share in gross tax collection in 2014-15 will be 15.6%.

However, there some doubts about the strong 30.6% growth in service tax assumed in 2014-15

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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