rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Which services should not be taxed? Govt seeks your views

Which services should not be taxed? Govt seeks your views

Last updated on: May 9, 2011 10:44 IST

Which services should not be taxed? Govt seeks your views

     Next

Next
In order to broaden the tax net, the government has sought public opinion on possibility of a negative list for service tax meaning that all services, which are not mentioned in it would be taxed under the proposed GST regime.

"The main issues that are sought to be deliberated in the debate are advantages and disadvantages of a negative vis- -vis a positive list...definition of the term 'service' and possible list of services that merit to be included in the negative list," the Finance Ministry statement said.

Click NEXT to read on


Image: Public opinion sought on tax.

     Next

Which services should not be taxed? Govt seeks your views

Prev     Next
Prev

Next
Services mentioned in the positive list will be taxed. Currently, only few services come under the tax net. But after Goods and Service Tax (GST) is implemented, taxes would be levied on most of the services.

The services sector contributes more than 50 per cent of the GDP but its representation in revenue is relatively low.

Click NEXT to read on


Image: Services mentioned in the positive list will be taxed.

Prev     Next

Which services should not be taxed? Govt seeks your views

Prev     Next
Prev

Next
The GST would subsume most of the indirect taxes like excise duty and service tax at the central level and VAT on the state front, besides local levies.

A Constitution Amendment Bill is pending in parliament which seeks to pave the way for introduction of GST.

The ministry further said that "areas that would need to be exempted separately even after moving towards the proposed negative list...are also to be deliberated upon".

Click NEXT to read on


Image: More changes in the offing.

Prev     Next

Which services should not be taxed? Govt seeks your views

Prev     Next
Prev

Next
Finance Minister Pranab Mukherjee had announced in the Budget 2011-12 that a public debate on the services tax to help the government finalise the approach to GST would take place.

"A concept paper on the subject is proposed to be drafted after the feedback from the stakeholders," the Finance Ministry statement added.

Comments on the issue are to be sent to the Directorate General of Service Tax by June 15.

Click NEXT to read on


Image: Finance Minister Pranab Mukherjee.

Prev     Next

Which services should not be taxed? Govt seeks your views

Prev     More
Prev

More
The ministry has sought participation of major industry federations like Ficci, Assocham, PHDCCI, and CII besides academic institutions like NIPFP before finalising the concept paper.

The ministry also wants opinion on the right approach for India, the international experience of taxation of services where the concept of negative list is in vogue and important issues arising by moving towards the taxation of services based on negative list.

Image: Ministry also wants opinion on the right approach for India.

Prev     More
© Copyright 2013 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.