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: cpt :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: empanelment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

Service tax may mean rise in prices
June, 22nd 2007

Prepare to shell out more when you go shopping at a mall or department store, thanks to the ever-widening service tax net.

From June 1, a service tax of 12.36 per cent has been introduced on rent of Rs 8 lakh or more per annum from leased commercial properties. The landlord will, naturally, charge the new service tax to the tenant, who is likely to pass the burden down to his customers.

The move may affect customers in shopping malls and departmental stores. Shops in malls and departmental stores typically have areas ranging from 500 sq ft to 10,000 sq ft in a city where rent for commercial properties varies from Rs 100 to Rs 400 per sq ft per month.

Mumbai Service Tax Commissioner S J Singh said his department estimated additional revenue of Rs 300 to Rs 400 crore from the move. He said many landlords had already come forward to register with the department, while help had also been sought from the stamp duty office to get a list of properties.

But unlike landlords, who simply have to recover the additional amount from the shopkeepers and give a rent receipt that separately mentions the service tax, traders are opposing the move. Shopkeepers said the new burden would have to be passed on to customers, who  face an increase in the price of certain goods.

This is ridiculous, said Mohan Gurnani, president of the Federation of Associations of Maharashtra. Nobody will pay from his pocket. The shopkeepers are in business, not in charity, he said.

Calling the implementation of service tax unjustifiable, Ashok Patel, president of the Fort Merchants Welfare Association said shopkeepers in the city already pay about 40 types of licence fee and taxes, all of which are factored into the price of goods on sale.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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