Industry & Economy
-
Budget
Pay for more services
In 2005-06, the services sector is estimated to contribute 54 per cent of GDP. Naturally, it should also contribute significantly to the exchequer. Continuing in the direction followed in the last few years, I propose to bring more services under the service tax net. The new services to be covered include:
ATM operations, maintenance and management;
registrars, share transfer agents and bankers to an issue;
sale of space or time, other than in the print media, for advertisements;
sponsorship of events, other than sports events, by companies;
international air travel excluding economy class passengers;
container services on rail, excluding the railway freight charges;
business support services; auctioneering;
recovery agents;
ship management services;
travel on cruise ships; and
public relations management services.
I also propose to expand the coverage of certain services now subject to service tax.
The leasing and hire purchase industry has faced some difficulty owing to the levy of service tax on all components of payments, including interest. I propose to rectify the anomaly. Accordingly, interest and instalments of the principal amount will be abated in calculating the value of the service.
More Stories on :
Budget |
Taxation
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
