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 :: cpt :: form 3cd :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TDS :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: list of goods taxed at 4%
 
 
« Service Tax »
 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
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down

Service tax on services provided overseas should be withdrawn
February, 27th 2016

The tourism industry should be treated at par with exporters based on its foreign exchange earnings. Tourism industry gets discriminated vis-a -vis exporters and tourism industry does not get any benefits that exporters of goods receive inspite of the fact that tourism industry earns foreign exchange and retention of foreign exchange is much higher than any other export oriented industry.

Like exporters, based on foreign exchange earnings, tour operators should also get exemption of service tax on package tours as the payment is received in foreign exchange. With the service tax added at present, India packages lose on account of price competitiveness and cannot match the prices on holiday packages, which are on offer by countries like China, Thailand, Malaysia, Sri Lanka, Singapore, and Hong Kong.

In our service sector, it is a common business practice that services are sub-contracted to the same category of service provider i.e. a tour operator sub-contracts to other tour operator. Eventually on the same transaction, tax is being paid by two tour operators without being allowed the CENVAT Credit. Sometimes, such transaction is sub-divided between many tour operators. Thus, ultimately on many points, service tax is being charged without giving the benefit of CENVAT Credit, which leads to the multiplicity of the taxes on the same transaction having a serious cascading effect. This happens frequently in respect of inbound tours and such multiplicity of service tax leads to higher cost, which has adverse impact on the foreign tourists, as India tends to get expensive and they prefer visiting neighboring countries. Thus India loses, on one hand, the foreign exchange and on other hand, it has adverse impact on the creation of employment opportunities.

It is suggested that when the same service provider sub-contracts its activity to the similar service provider, service tax charged by the sub-contractor should be allowed as CENVAT Credit to the main service provider to avoid multiplicity of the service tax on the same transaction. Or provide exemption from charging service tax within the same category of service providers.

Service tax is levied for the services provided to Indian tourists visiting neighbouring countries like Nepal, Bhutan, Sri Lanka, Bangladesh, Maldives etc., which was not there prior to July 2012. This needs to be withdrawn as services are provided outside India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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