Comments on: Govt pays heed to the protests by Chartered Accountants…in its own way!!

By: rahul

rahul — Wed, 29 Mar 2006 07:43:18 +0000

Hello Ram..

Who told you that Service Tax is a Black Money evasion tool?? Its purely a revenue measure initiated by Mr. Manmohan Singh as MoF in 1994. It was started only on 3 services than at rate of only 5 percent.

There is Sales Tax on goods sold, but no tax on services rendered. This tax is to tax services as well.

As present MoF has signaled that country should get ready for common Goods and Services Tax (GST) and same is expected to be implemented on 01.04.2010. After this move all Sales Tax/VAT/Service tax would be taken off and there will be common GST for all goods sold or services rendered.

So, dont think like Service Tax is balck money evasion tool. Black money evasion tool is Banking Cash Transaction Tax (BCT) and not service tax

By: Ram

Ram — Sun, 26 Mar 2006 07:11:54 +0000

Govt. considers service tax more as an anti black money evasion tool rather than as a revenue generating measure. Incidentally, service tax is bringing in bumper revenues for the government. But unfortunately, govt. is using service tax to ensure that loopholes are plugged. Where persons are able to evade income-tax, service tax ensures that evasion is avoided. It’s like the Aussie team of the 70′s where “if Lillee don’t get you, then Thommo will”, the analogy is simple, that “if I.T. don’t get you, then service tax will”. Time may come when we may have to pay service tax even to our dhobbies and house servants. God save this nation.

By: ankur

ankur — Wed, 22 Mar 2006 17:52:07 +0000

hi madhur
i m agreed with the words of rahul that why should ca be kept out of tax ambit..even ca would contribute revenue to the government..however it was a mistake of the government of not taxing the other professionals like lawyers,even they will contribute the revenue to the government..

secondly i am also not satisfied with the point of rahul that all professionls will be taxed at uniform rate..

By: rahul

rahul — Wed, 22 Mar 2006 05:37:07 +0000

I dont agree.. Why the professional services should be kept out of Service Tax Ambit??? Professionals should also contibute to Revenues of government.

On what grounds you feel that professionals should be left untaxed. I endorse the view that all Profesional Service Providers be it Doctors/Lawyers or CAs/CSs/ICWAs should be taxed at uniform rate.