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 :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARD :: VAT RATES :: list of goods taxed at 4% :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TDS
 
 
« Service Tax »
 Rules not ready, key e-way bill for GST may be delayed, says top official
 How Goods and Service tax will benefit the nation
 GST implementation may increase expense ratio of fund houses
 GST structure: an unfortunate compromise
 Extension Of Provisional Attachment Under Service Tax Provisins
 How favourable will GST be for Karnataka?
 GST rate impact: Here’s how the new tax can carry a greater punch
 E-way Bill - movement of goods under GST
 How the GST rates will affect your money
 GST: The coming disruption in the wholesale trade
  Ways In Which GST Will Impact The Average Indian’s Wallet

Service sector cos to get tax
June, 12th 2009

Employment generating companies in the service sector are likely to get a boost in the forthcoming Budget in the form of tax incentives. This can be through a tax benefit, which will be in proportion to the number of new jobs created by companies, said an official with the income-tax department.

At present, the manufacturing sector gets a tax incentive for all additional jobs it creates every year. The government now wants to spread the benefit to companies in the service sector, too. The incentive, currently, is a deduction of 30% of the amount paid as wages to newly-recruited regular workmen. These incentives are provided for the manufacturing sector under Section 80 JJ AA of the I-T Act.

Under the provision, companies are allowed to claim a deduction for three years subsequent to the appointment of 100 or more new workmen. The governments proposal is similar to incentive structures that some of the EU countries have. While a tax incentive linked to employment can be misused, the benefits, its perceived, may be far reaching.

Advocates of such an incentive argue that a higher employment generation creates a virtuous cycle through greater demand, which in turn pushes up a countrys national income. The service sector accounted for 52.4% of the total GDP in 2006-07 at current prices. Estimates are that the share has increased to around 54% for 2008-09. In recent years, telecom firms, BPOs and financial services company have emerged as big employers in the country.

The sector, according to the governments definition, is categorised as : (a) Trade, hotels, transport and communication; (b) Financing, insurance, real estate and business services; and (c) Community, social and personal services. Of this, trade, hotels, transport and communications generate half the income in the service sector.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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