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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

Brace up to pay more service tax in 2011-12
March, 05th 2010

Trinamool Congress chief and railway minister may be fussing over imposition of service tax on rail freight on non-essential commodities but by next year, the government has plans to bring all services, including passenger fare and all freight under the tax net.

Not just the Railways, the revenue department is looking at services which constitutes 60% of GDP at current costs as a major source of revenue in the future once the unified Goods and Services Tax is implemented, likely from the start of 2011-12.

A senior finance ministry official said barring certain services like primary health, education, government services and sovereign functions such as defence and security, all other services will be brought under the service tax net. In the Budget for 2010-11, the government brought domestic air travel, movies, IPL cricket, beauty pageants and lotteries under the service tax net.

Each of them, according to preliminary estimates made by the Central Board of Excise and Customs (CBEC), is likely to fetch upwards of Rs 100 crore, barring air fares that is estimated to net Rs 500 crore a year.

Income on account of service tax on rail freight is likely to get the government around Rs 800 crore. The total incremental gain due to broadening of the service tax base this year is estimated to be Rs 3,000 crore.

However, service tax on railways this year has been limited to freight of non-essential items. This means prices of mass-consumable goods such as soaps, shampoos and electronic goods are likely to go up with service tax to be levied at the rate of 10% on their transport.

The expanded list includes cinematographic films and sound recording and copyright. Health check-up being paid for by employers, additional services provided by a builder to prospective buyers such as preferential location or external or internal development of complexes on extra charges, clubhouse, ACs or park-facing locations are in the tax net.

Service of promoting of a brand of goods, services, events like beauty pageants, business entity, etc; promotion, marketing or organizing of games, including lottery, is being introduced as a separate service this year.

Among the expanded list of four services, domestic air passenger service has been included and international journeys in any class.

All coaching classes will now come under the tax ambit. Similarly, sponsorships in sports has also been included while national sports federations will continue to get exemptions.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

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