Sinha makes more services fall under the service tax net
In its budget speech, Sinha has brought many new services under the service tax net.
The new services brought under the tax net are:
Life insurance, including insurance auxiliary services relating to life insurance
Inland cargo handling
Storage and warehousing services (except for agriculture produce and cold storages)
Event management
Rail travel agents
Health Clubs & Fitness Centres
Beauty parlours
Fashion designers
Cable operators
Dry cleaning services
Service tax is currently made applicable to specified services provided by banks and
non-banking financial companies. Sinha has extended service tax to corporate bodies that
provide similar services.
In the last budget of 2001-02 also, Sinha had manage to bring a lot of services under
the tax net. These included services in banking and finance, port, broadcasting,
photographic, convention, sound recording, telex, telegraph, fax, online information and
data retrieval, video tape production, insurance and authorised service stations for
servicing of vehicles.
