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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

Govt hopes to mop up more resources from service tax
July, 26th 2008

The Government hopes to mop up more resources from the service tax, according to Mr P.C. Jha, Chairman of Central Board of Excise and Customs. The service sector contributes to more than 50 per cent of GDP while in terms of tax-GDP ratio, the share of the service tax is a meagre 1.1 per cent, Mr Jha observed while addressing the members of the Merchants Chamber of Commerce here on Friday, adding, there is, therefore, considerable scope for improvement in the share.

Asked if the Government was considering bringing more services under the ambit of the service tax, Mr Jha replied, it is difficult to say anything in this regard right now but according to an international manual, as many as 1,500 services could be taxed. .

The service tax in India, as he pointed out, was introduced in 1994 and in 1994-95, the tax rate was five per cent and three services were taxed and the Government raised Rs 410 crore on this score. In the past 14 years, the number of services being taxed has gone up to 106 and the Government earnings from the service tax many times more and the rate of tax too has been jacked up to 12.36 per cent.

In 2007-08, over Rs 51,000 crore was raised by way of service tax and the target for the current year has been set at more than Rs 64,000 crore. Judging from the trend so far in the current year, we hope to cross the target, he observed. In first two months, the collection has been over Rs 9,700 crore.

Referring to various measures initiated by the Government to ensure greater compliance, he said a compendium has been prepared explaining everything one needed to know about the service tax. Businessmen should read this booklet before heeding to the advice of their tax consultants, he said. Some of the complexities in the existing tax rules should be attributed to the complex behaviour of a section of businessmen.

If one pays taxes as per law, there will be no problem while the hassles of tax avoidance are not small, he said. We are responsive to your problems and our objective is not to create problems for you.

The share of indirect tax in the Governments total collection, as he pointed out, was declining which, he felt, was a good sign for the economy. In the current year, the total collection from various indirect taxes has been set at Rs 3,20,000 crore, to register a growth of about 14.1 per cent. However, the share of the indirect tax would drop 46.5 per cent from 47.5 per cent in 2007-08.

 

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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