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Service tax rules to converge from June
May, 31st 2007
The revenue department is expected to release two circulars mentioning details of all 100 services under the service tax net and related procedures in a simplified manner by mid-June. 
 
The comprehensive circulars will replace all the present circulars and will enable tax-payers to access required information in a detailed and simplified manner, Central Board of Excise and Customs (CBEC) member PC Jha said at an Assocham seminar today. 
 
One circular will describe the scope of services while the other will explain the procedures. Service Tax Commissioner Gautam Bhattacharya said the circulars would be based on the recommendations of the Rastogi Committee. 
 
The new circulars are in final stages and will be issued by mid-June after clearance by Finance Minister P Chidambaram, he said. The CBEC has already withdrawn 48 circulars that have no relevance. Despite this, there are 120-130 circulars. 
 
Jha said that in future, all circulars would be issued only by the CBEC, unlike in the past when the Director General Service Tax also used to came out with circulars. 
 
Bhattacharya said seven new services included in the service tax net from June 1 this year were expected to fetch Rs 8,000-9,000 crore this fiscal.
 
 
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