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: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT Audit :: TDS :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India
 
 
« Service Tax »
 Indian GST is significantly unique, but is it better?
 GST example of national integration
 6 reasons you need not fear the GST regime
 Tax return filing extension on GST may not be enough
 GST: ‘Tech readiness, tax administration key challenges’
 GST return filing rules relaxed for Jul-Aug, July 1 rollout
 GST Council gives return filing breather to India Inc for 2 months
 All eyes on 18 June as GST Council meets to iron out niggling issues
 GST Council's June18 meet to finalise e-way bill, anti-profiteering rules
 Valuation of Tax liabilities Under GST Regime
 Govt to go soft on GST monitoring for a few months, let traders settle down

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 2017 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