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Service tax changes in budget

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Mahesh M Nair

Executive- Global Tax

25 Points Posted on 04 April 2012

The union budget 2012 has left us thinking about the fate of normal people in our country.

No there is a significant change in the Service Tax Regime that could trigger a lot of ligitations inside the country.

The Government has proposed taxation of services based on the negative list, this indirectly implies that all services rendered under the sun are taxable, except those which are specified in the negative list.

My concern is with regard to the registration process, how much services one can register with the Govt and the Govt should also specify codes for all the services in the country.

It would be a daunting task for the revenue to include all the changes and to streamline the function of the department.

Replies (1)

Priteshkumar N.Rathod

Chartered Accountants

48 Points Posted on 05 April 2012

As ther Negative list is already exist hence it would be better to define only one common code for all types of taxble services so that there need not to define the Services and related codes and due to one common code most of the litigations relating to filing return in diffrent code that in view of assessee v/s. dept.view for correct code by which challan shold be deposited and return to be filed also comes to an end accordingly the return filing work would become simplified and easy.

I think this is the best way the govt.should consider and this is just like in case of income tax reutn main five heads defined for type of income but tax for all heads by merging required to be deposited in one head only.