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Rustagi panel likely to submit services tax report
July, 14th 2006

The one-man T R Rustagi committee undertaking comprehensive review of services tax is likely to submit its report to the Finance Minstry in August.

"I believe that the committee would submit the report to the Finance Ministry in August," Rustagi, a former joint secretary in the Finance Ministry, told reporters on the sidelines of a FICCI seminar on Cenvat rules and services tax.

Suggestions on services tax are coming in great numbers, he said, adding that the committee has fixed July 15 as the last date for sending suggestions.

The committee was set up by the Finance Ministry last month to undertake a comprehensive review of all circulars, instructions and clarifications relating to services tax in accordance with the changes in law and court pronouncements.

The committee is studying all circulars issued on services tax since 1994 to make them consistent with changed provision of law.

Acknowledging the fact that tax officials lacked adequate training, Joint Sectreary (TRU) Finance Ministry Gautam Ray said, "The government is framing training schemes for them."

He clarified that the backlog of over 35,000 pending demands, appeals and legal disputes on service tax matters were not due to the problems of legislation per se but with the assesses who were not willing to pay or had missed their deadlines for filling tax returns.

Amidst industry clamour to introduce negative list for service tax, he said that positive list is easier to implement, however, it is upto empowered group of minister to decide on the issue of negative list.

 
 
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