In one of my pre-budget articles last year, I had mentioned that Finance Ministry has hit upon ‘Alibaba’s Treasure’ in form of Service tax. Government is increasing the gamut of service tax year by year by adding more and more services to the taxable list.
Even this year, our Honourable Finance Minister Mr P. Chidamberam is likely to cast the service tax net wider to capture lawyers, nursing homes and amusement parks when he presents the budget on February 28.
It is expected that the minister is likely to add more number of services to the list of taxable ones than he did last year. In his previous budget, Chidambaram had added 15 new services and also withdrawn exemption to six more. Now altogether 98 services are taxed at the rate of 12.2%.
Further, certain services too are likely to be redefined to plug loopholes by means of which the minister shall attempt to catch hold of the few service providers who at present are escaping without paying tax. The Finance Bill is likely to propose amendments to expand the scope of some services such as tour operators, minor port services and certain banking and financial services.
All in all, the Government has hit upon the Alibaba’s Treasure and our Finance Minister is doing his best to exploit it.
Related Posts
Govt Pays heed to the protest of Chartered Accountants..in its own way!
Government Found out Alibaba’s treasure!!
Popularity: 1% [?]
Madhur,
Just hold on………..If PC continues to be our FM, one day he will publish neagtive list for service Tax.
Boss (Fin Min), you are just too great……. I wish You continue to be the Fin Min of India for infinite period.Your magic wand in the form of (MAT, FBT, BCTT,VAT,Education Cess,STT,EET Regime inspite of EEET, GST Act – all these taxes are introduced by him) is definitely gonna boost our economy…….