Budgetary changes meant to encourage exports, says official

SuitBoot

Editor

posted on 11 years ago — updated on 1 second ago

24
views

Follow us:WhatsappFacebookTwitterTelegram.cls-1{fill:#4d4d4d;}.cls-2{fill:#fff;}Google NewsSaroj Kumar Shadangi, assistant commissioner of Customs and Central Excise, has said that the budgetary changes related to service tax this year are aimed at addressing a number of issues such as simplicity and certainty in tax processes, neutrality of business to tax by mitigating cascading effect, encouraging exports and optimising tax compliance.Addressing an interactive meeting, organized by the CII Puducherry recently, Shadangi said that the changes are largely driven by the desire to create the required setting for the eventual launch of Goods and Services Tax (GST) in a far more familiar environment.He also touched upon how there are two approaches for coverage of Service Tax, Selective Coverage and Comprehensive coverage. Shadangi said that the finance minister has introduced the Finance Bill 2012, proposing taxation of services based on negative list.“This involves a sea change by moving from taxation of 119 specified services to a new system of taxation of all services except those services specified in the negative list or otherwise exemption provided or agreed to be provided in the taxable territory,” said Shadangi.He said this new system is a marked shift by way of comprehensive taxation of the entire service sector without getting into complex issues of classification of various services.K S Shetty, chairman, CII Puducherry and vice president, Hindustan National Glass & Industries Ltd., spoke on how important Service Tax is for the overall growth of the country’s economy and the Gross State Domestic Product (GSDP).Shetty touched upon the Service Tax levied on the recommendations made in early 1990’s by the Tax Reforms Committee headed by Dr Raja Chellaiah. The Committee which pointed out that the indirect taxes at the central level should be broadly neutral in relation to production and consumption of goods and should, in course of time, cover commodities and services.first published:August 13, 2012, 11:43 ISTlast updated:August 13, 2012, 11:43 IST
window._taboola = window._taboola || [];_taboola.push({mode: 'thumbnails-a', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' });Latest News

Saroj Kumar Shadangi, assistant commissioner of Customs and Central Excise, has said that the budgetary changes related to service tax this year are aimed at addressing a number of issues such as simplicity and certainty in tax processes, neutrality of business to tax by mitigating cascading effect, encouraging exports and optimising tax compliance.

Addressing an interactive meeting, organized by the CII Puducherry recently, Shadangi said that the changes are largely driven by the desire to create the required setting for the eventual launch of Goods and Services Tax (GST) in a far more familiar environment.

He also touched upon how there are two approaches for coverage of Service Tax, Selective Coverage and Comprehensive coverage. Shadangi said that the finance minister has introduced the Finance Bill 2012, proposing taxation of services based on negative list.

“This involves a sea change by moving from taxation of 119 specified services to a new system of taxation of all services except those services specified in the negative list or otherwise exemption provided or agreed to be provided in the taxable territory,” said Shadangi.

He said this new system is a marked shift by way of comprehensive taxation of the entire service sector without getting into complex issues of classification of various services.

K S Shetty, chairman, CII Puducherry and vice president, Hindustan National Glass & Industries Ltd., spoke on how important Service Tax is for the overall growth of the country’s economy and the Gross State Domestic Product (GSDP).

Shetty touched upon the Service Tax levied on the recommendations made in early 1990’s by the Tax Reforms Committee headed by Dr Raja Chellaiah. The Committee which pointed out that the indirect taxes at the central level should be broadly neutral in relation to production and consumption of goods and should, in course of time, cover commodities and services.