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: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT RATES :: Central Excise rule to resale the machines to a new company :: TDS :: due date for vat payment :: empanelment :: VAT Audit :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India
« Service Tax »
 Chidambaram says there cannot be multiple tax slabs in GST
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C
 Determination of value for transactions between the Related parties under GST Laws.
 Higher collections can offset GST losses
 GST to subsume over a dozen Central, State taxes
 Incidence of indirect taxes won't go up under GST
 Advanced Budget date: Absence of a GST rate may present estimation challenges

FICCI opposes TDS in service tax collection
August, 04th 2011

Apprehending escalation in compliance cost, FICCI today questioned the rationale behind the proposal to introduce tax deduction at source (TDS) in service tax collection.

" would entail, amongst other problems, higher cost of compliance, lead to the problem of TDS credit/refunds and intricacies of input tax credit claims," the chamber said in a communication to the Directorate General of Service Tax.

It questioned the rationale of the TDS proposal at "this juncture" when the introduction of GST is imminent and service tax is to be subsumed within the proposed indirect tax regime.

"Therefore, any major change in the administration and collection of service tax will be for a relatively short period," the chamber said.

The Government has tabled a Constitutional amendment bill with an aim to roll out Goods and Services Tax (GST). However, the Centre and States have yet to reach a consensus on several issues.

FICCI said the proposal to introduce TDS in service tax collection in the existing indirect tax structure will envisage obtaining TDS registration, issuing TDS certificate, maintaining TDS register and filing of TDS return by the paying entity.

"(all this would) entail additional cost of compliance for both the industry and the government, apart from complicating the tax structure further, which may not be desirable," it said.

The proposal is also irrelevant in view of the newly introduced Point of Taxation Rules (PoT Rules), that came into effect from July 1, Ficci said.

"The industry has, of late, been reeling under the rising interest cost for its working capital. These Rules have now aggravated the problem...The proposal to introduce TDS would further aggravate the already delicate situation," it said.

FICCI said the Centre and State governments and the High Powered Committee of State Finance Ministers on GST should make sustained efforts to find a way forward for the expeditious launch of the GST.

FICCI urged the Government to drop the idea of introducing TDS mechanism for the collection of service tax.

In case, however, the same has necessarily to be introduced, it would be imperative to scrap PoT Rules, it added.

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

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