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Govt to issue comprehensive tax circular
May, 31st 2007

The government will issue a comprehensive circular clarifying ambiguities of about 100 services in the tax net by mid-June, the source of which will be the board and not director general of service tax, said Central Board of Excise & Customs (CBEC) member P C Jha on Wednesday.

Addressing mediapersons in a seminar organised by industry body Assocham, Mr Jha said, The government is aware of inconveniences that trade and business has been facing on the service tax front. The comprehensive circular would replace all present circulars and would enable tax payers to access all required information in a detailed and simplified manner.

The government has already withdrawn 48 circulars issued since 1994 and efforts are being made to clarify all service tax-related issues. In future, all circulars would be issued only by the CBEC unlike in the past when director general of service tax also issued the circulars, added Mr Jha.

The government had imposed service tax only on three services in 1994, which generated revenues worth Rs 50 crore. It is now targeting service tax revenue of Rs 50,200 crore this fiscal against Rs 37,500 crore in 2006-07. Service tax commissioner Gautam Bhattacharya said the circulars would contain modified and required portion of present circulars.

 
 
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