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: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: form 3cd :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT Audit :: TDS :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company
 
 
« Service Tax »
 Pay tax once on the input, deduct it from the output
 GST Network to begin accepting fresh registrations from June 25
 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

Experts, industry flay service tax on govt services
May, 02nd 2016

Industry bodies and advisory firms have raised objections to the new service tax on government services, saying the move may lead to a lot of disputes.

"The imposition of service tax on government services is going to increase cascading impact of taxation front and also given that the entire concept is so vague, this is going to generate a large number of disputes," EY Partner Uday Pimprikar told PTI.

The Budget had widened the service tax net to include services that government renders to the public and corporates, such as issuing passports, driving licences, birth and death certificates, among others. But following representations from many stakeholders, the government exempted individuals from the tax.

The new service tax structure came into force from April 1.

"The timing for seeking to impose tax on government services may not necessarily be appropriate. There are many areas of the economy like trading which are not entitled to claim credit. So, this tax itself will unnecessarily accentuate cascading impact on the economy," he said.

According to Pimprikar, in most countries where GST is in force, such a tax on government services is not imposed.

Even in economies like New Zealand where such service tax has been levied, the government ensures that there is no cascading impact because they have got an all-pervasive GST regime and the tax that is charged is available as a credit to be set-off. And in case the credits are not set-off, they grant refunds, he pointed out.

As per a clarification issued by the government on April 13, any service provided by the government or a local authority to a business entity has been made taxable with from April 1. Prior to this, only support services provided by government or local authorities to business entities were taxable.

The government also clarified that services like issuance of passports, visas, driving licences, birth or death certificates to individuals have been exempted and for business entities the exemption is only for birth/death certificates.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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