Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: articles on VAT and GST in India :: form 3cd :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT RATES :: list of goods taxed at 4%
 
 
Service Tax »
  Central Goods and Services Tax (CGST) Rules, 2017
 Goods bought with loyalty points will face tax under GST
 substitution of Service Tax by Goods and Services Tax (GST)
 Income Tax: TDS deducted but ITR not filed? Here's what professionals need to do
 9 ways GST could impact home buyers
 Consumers hailed GST, but there's need for awareness'
 Tax departments keep a close watch on prices post GST rollout
 GST effect: 5 things that changed after the new tax regime
 GST is no game changer for farmers, yet
 GST: Government bets big on tech to ensure e-way bill does not bring back inspector raj
 Government to keep an eye on price rise & GST glitches

Business sentiment improves, service tax collection inches up
February, 02nd 2015

Some good news for Prime Minister Narendra Modi with early revenue figures indicating an uplift in business sentiment. Nine months of the NDA government has seen the highest growth in manpower recruitment and supply services, besides those providing consultancy and engineering knowhow. Airports too have been among the highest contributors to the tax kitty.

During the April-December period of 2014-15, service tax collection from all services was to the tune of Rs 1.20 lakh crore compared to Rs 1.10 lakh crore last year. Interestingly, the growth in contribution from business support services and manpower recruitment agencies have been highest at 24% and 23% respectively.

READ ALSO: World Bank projects 6.4% economic growth in India in 2015

However, service tax authorities say the contribution of manpower supply agencies may not totally reflect the actual increase in direct employment. A lot of big multi-national companies (MNCs) and Indian corporate houses are shifting to contract employment where they can hire and fire at will. Hiring through contractors, even for specialized skilled services, is the new trend to circumvent the stringent labour laws in the country.

"Many of the foreign MNCs and some big Indian information technology companies are hiring skilled workers in bulk, say 500 to 700, through manpower supply agencies. These employees are withdrawn by contractor on a single notice with no obligation to the MNC," said a senior tax official.

READ ALSO: Economy set to take off for 8-9% growth, Arun Jaitley says

Service tax collected from passengers embarking on domestic and international journeys showed growth of 20% up to December, compared to the same period in the previous fiscal year. This could also mean more money in people's pocket or an improvement in the country's business environment.

This is supported by more usage of credit and debit cards with tax collected on these services registering a growth of 22%.

Sectors not doing well include the insurance industry which collected Rs 3,072 crore up to December compared to Rs 3,481 crore in the previous fiscal. Even general insurance services had a mere 3% growth with collection of Rs 6,379 crore compared to Rs 6,192 crore in the same period last year.

Growth in the real estate segment too remains in the negative zone with service tax collection at Rs 2,694 crore during April-December, down 12% from last year's Rs 3,054 crore. This is despite the fact that the new government had allowed additional concessions in income tax.

The collection from security and detective agencies was Rs 2,076 crore, more than 17% compared to last year's Rs 1,770 crore. These detective and security agencies have contributed more to the Modi government than credit/debit card services and almost as much as the service tax collection on domestic and international journeys.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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