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: form 3cd :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: cpt :: ACCOUNTING STANDARD :: VAT RATES
 
 
Service Tax »
  Getting the trade to align with GST is a challenge
 Getting the trade to align with GST is a challenge
 With GST launch, race against time to avoid sales tax upheaval across India
 GST to rate taxpayers, businesses on payment record, make ratings public
 7 major benefits of Goods and Services Tax
 100 Opening GST Profiles- Indirect Taxation- ALL Industries
 New Opening Sr. Manager-Indirect Tax For A Leading Power Company
 Tax Collected At Source Under GST Regime
 India's GST challenge makes Donald Trump's tax overhaul look easy
 What does GST hold for Indian youth?
 GST will help India move towards becoming a commercial union

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