New Service Tax regime comes into force
- A new service tax regime has come into force.
- All services, except 38 services in the negative list, will now attract 12% service tax.
- The government has also broadened the definition of ‘Services’ to bring in more activities under the tax net but services such as metered taxis, auto rickshaws, betting, gambling, lottery, entry to amusement parks, transport of goods or passengers and electricity transmission or distribution by discoms have been kept in the negative list and will not attract the tax.
- Coaching classes and training institutions will nevertheless come under the tax net, via the tax will not be levied on school and university education and approved vocational courses.
- The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax, GST.
Month: Current Affairs - July, 2012