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: due date for vat payment :: VAT Audit :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: ACCOUNTING STANDARD :: cpt :: empanelment :: list of goods taxed at 4% :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
« Service Tax »
 GST delay to impact Budget
 If GST not rolled out by Sept, there won't be taxation in country, warns Jaitley
 India’s E-Service Tax Will Add To Foreign Content Providers’ Woes
 GST Council to discuss model laws, tax jurisdiction today
 Tax Invoice Under GST
 Insurance may fall under 12% tax slab in GST, from 14% service tax currently
 GST draft makes it must for companies to pass tax benefit to consumers
 To speed passage, Government plans GST Bills as money Bills
 No service tax on train tickets booked through IRCTC till December 31
 GST Council meet postponed to December
 Banks integrating systems with RBI, GST Network to collect tax: Arun Jaitleya

Service tax may climb back to 12%
June, 11th 2009

The government is considering a proposal to restore the rate of service tax to its earlier level of 12%. The government had reduced the service tax rate to 10% in the third stimulus package which was unveiled in February.

This option of withdrawing the service tax cut is being weighed on account of spiralling government expenditure a result of the governments attempts to boost the economy and shrinking revenues due to the slowdown in economic activity, according to a highly-placed government functionary who did not want to be identified.

The final decision on the issue would be taken by finance minister Pranab Mukherjee, in consultation with the Prime Ministers Office (PMO) and the Planning Commission, the source said. One view that has emerged is that the worst is over and the government should take steps to signal a gradual shift to fiscal discipline.

According to provisional estimates, service tax collections in 2008-09 were around Rs 60,000 crore registering a growth of around 18% even though indirect tax collections declined due to the downturn. This booming segment should not suffer due to concessions provided to India Inc, feel some sections within the government, including the revenue department.

Another option under consideration is to boost service tax collection by including more segments like education, legal and medical services under the tax net. However, past experience indicates that moves to tax these services will face stiff resistance.

The finance minister would have to build political consensus if these services are to be taxed, sources said. Education and medical services in particular are sensitive from the social sector point of view and taxing them could be difficult if the mood of the UPA government is any indication. The support of allies like the DMK and the TMC may not be forthcoming for such measures, they added.

While the government had kicked off its stimulus efforts with cut in excise duty, the third stimulus package which was the last before the elections reduced service tax rate to 10%.

Since goods & service tax (GST) is to kick in next April, there is a school of thought within the government which feels that indirect tax structure can be left undisturbed at this juncture. Introduction of GST provides an occasion for modification of the indirect tax burden on the industry, they add.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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