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: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: list of goods taxed at 4% :: VAT Audit :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT RATES :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS
 
 
« Service Tax »
 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 waived for online train ticket booking till Dec 31

Service tax: life insurance companies, ad agencies add cheer to collections
August, 27th 2015

Life insurance companies and advertising agencies along with recovery agents have boosted service tax collections. Others such as real estate and air travel agencies have registered negative or below average growth in tax collection.

According to the Central Board of Excise and Customs (CBEC), the recovery agent segment topped the list with over 250 per cent growth in collections during April-July, followed by life insurance services, promotion of brands of goods, services etc, advertising agencies and survey & exploration of minerals. Rising bad debts (non-performing assets or NPAs) seem to have increased the work of recovery agents which, in turn, has propped up service tax collection.

Services showing below average growth include dredging and residential construction, which showed negative growth during April-July quarter.

Two other services related to real estate registered single digit growth, while the surprising element in this list is air travel agencies, which showed just one per cent growth.

Interestingly, air travel in April-July grew both domestically and internationally. While international travel saw double digit growth, the number of domestic air passenger grew by over 21 per cent. An air travel agent has to pay service tax either on the fees paid by the passenger or commission paid by the airline. It appears that the trend of direct online booking has affected the income of travel agents which, in turn, has lowered the service tax collection.

The services sector, which contributes over 57 per cent to the GDP, is an important component of the overall tax collection. Its share in the Budget estimate for indirect taxes collection (customs, central excise and service tax) is over 32 per cent. Even in gross collections of both direct and indirect taxes, service tax is estimated to contribute around 14.5 per cent.

The government has set a target of 24.8 per cent for growth in service tax collection for this fiscal. However, the average growth so far is around 16 per cent.

Revenue Secretary Shaktikanta Das, while addressing a conference on Monday, had asked officials to do a sector-wise analysis to find out why service taxes were not showing higher growth.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 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