New Delhi: Central Excise and Service Tax (CBEC) announced finalization of a comprehensive circular between 12-15 June. This will clarify ambiguities about 100 services and the source of circular will be the board only and not the Director General of Service Tax.
At a national seminar on Rs.Service Tax: The Changing Dimensions’ organized by Assocham, Member CBEC, Mr P C Jha said that the government was aware of inconveniences that trade and business encountered on service tax front and it is in view of this that the board will finalize its circular and clarify its stand on various service tax relating issues numbering 100.
He said the government withdrew 48 circulars and the new circular will clarify issues relating to service tax. Also, ambiguities arising out of service tax imposition would be clarified . However, trade and industry needed to be cautioned on constitutional validities on imposition of service tax regarding works and service contract, which is misplaced since government consulted Law and Justice Ministry on the issue.
Service taxes will be adequately addressed since government would earn mandated revenue from service tax, extent of which has already exceeded Rs 37,500 crores in fiscal 2006-07 and target for 2007-08 for service tax is Rs 50,200 crore.
Mr Jha said the government began service tax with three services way back in 1994 in which revenue generation was Rs 50 crore; this has increased manifold since then.
Meanwhile, the government has been asked to clarify its service tax stand on works contract and service taxation on immovable properties. Constitutional validity of service tax imposition on these areas have been questioned and the government urged to review it so that trade and business gets necessary respite.