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Service tax generation to touch Rs 50k cr this fiscal
September, 25th 2006
Increased rate and a larger number of services under the tax net will push the revenue generation, on account of services tax, to Rs 50,000 crore during the current fiscal against the targeted figure of Rs 40,000 crore, according to industry body Assocham. The services sector has registered a substantial growth rate in the last couple of years and the trend will not only continue but also yield high revenue collections for the Government, Assocham president Anil K Agarwal said in a statement. In 05-06, the government earned a revenue of Rs 23,000 crore and fixed a target of Rs 34,500 crore for 06-07 at the time of the budget presented for service tax collection. This has been revised by finance ministry officials to Rs 40,000 crore as they exuded confidence that the way services are being expanded, the target for service tax collections should be set higher, the chamber said. The industry body has also said the revenue generation from the service tax will touch a new high of Rs one lakh crore by 07-08. Assocham also said the number of assesses would also increase from the present 9 lakh to 25 lakh by next fiscal. Search and seizures off late are being intensified by the officials of the finance ministry, which will naturally lead to enhancement of the service tax, it said.
 
 
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