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Govt seeks views on Rustagi report on service tax circulars
March, 13th 2007
The Government has sought the views and suggestions of trade and industry associations and all others concerned with service tax on the recommendations of the Rustagi report on review of service tax circulars and instructions.

Official sources said that the comments would have to be sent to the Finance Ministry before March 31.

Last year the Government asked Mr T.R. Rustagi, Chief Commissioner of Central Excise (retd), to review all the service tax circulars and instructions since 1994 and come up with recommendations to weed out the redundant circulars in the wake of legislative changes in service tax over the last decade.

Mr Rustagi had submitted his report to the Government in February.

The report has segregated the circulars, clarifications and instructions issued by the Revenue Department into three categories - 1) to be withdrawn 2) to be retained and 3) to be modified.

Taxation of services was introduced in 1994. Since then, the Revenue Department has issued several circulars, instructions and clarifications.

Currently, 96 services come under the service tax net. This number will go up once Budget 2007-08 is passed by Parliament.

Meanwhile, the Centre is well on course to achieving the revised estimate of service tax collections of Rs 38,169 crore for 2006-07. For 2007-08, the target has been pegged at Rs 50,200 crore.

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