BackService tax collection to cross Rs50,000 cr in FY08
Service tax collection to cross Rs50,000 cr in FY08
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PTI
New Delhi: Service tax collection in 2007-08 is likely to touch Rs50,000-crore mark, against Rs37,500 crore in the previous year, a government official said on 6 July.
This would be despite the fact that over 200,000 taxpayers have been exempt from paying service tax as the government has raised the ceiling to Rs8 lakh from Rs4 lakh, Central Board of Excise and Customs (CBEC) Member P Jha said at a PHDCCI function here.
“This year we will have 4.5 lakh active tax payers, despite the exemption because of which 200,000 tax payers would go out of the tax net," Jha said.
In the current fiscal, the government expects to garner over Rs5.5 lakh crore through taxes, comprising of Rs2.8 lakh crore from the indirect tax basket and Rs2.7 lakh crore from direct levies.
The service tax would alone be contributing about 9% of the government’s total tax collection and about 18% of indirect tax collection in the current fiscal, Jha said.
He said that this is a very significant achievement considering the fact that service tax was introduced only in fiscal 1994-95, when the collection was just Rs400 crore.
At present, there are 100 services which come under the ambit of service tax, he said, adding that the Board would soon come out with a complaint redressal mechanism and issue two master circulars to provide more clarity to the assessee.
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