Seven More Taxable Services w.e.f 1st June 2007

Last updated: 22 May 2007

Save Share

PTI[ TUESDAY, MAY 22, 2007 07:39:59 PM] NEW DELHI: Seven more services such as commercial property renting, fax, pager and content for telecom will become costlier from June 1 with the government bringing these services under the tax net. This will take the total number of taxable services to about 100. Service providers will have to pay 12 per cent service tax and an additional 3 per cent education cess. Tax on these services will be effective from June 1, according to a notification issued by the Central Board of Excise and Customs today. The notification follows the enactment of the Finance Act 2007. Finance Minister P Chidambram had announced in the Budget 2007-08 to bring these services under the tax net. Now, service providers will also have to pay service tax on services like fax, telecom connection, pager, leased circuit and communication through telegraph. However, property owners have been given a marginal relief as property tax would be deductible for the purpose of service tax on commercial rentals though any penalty paid under the property tax cannot be deducted. The notification also broadened the existing services tax net to include maxi-cab capable of carrying more than 12 persons for educational bodies or vehicles for driving schools, and rent-a-cab services, tent services, event management and manpower recruitment. The notification, however, exempted services provided for execution of works contract in relation to port construction. Though, services provided for repair, renovation, restoration, maintenance or repair in relation to existing ports would be liable for service tax. Following demand from the construction sector, the government has also provided an option to service providers of work contracts to pay service tax equivalent to two per cent of the total value of the works contracted instead of paying service tax at the specified rate. The Finance Act has raised the threshold limit for service tax exemption for small providers from Rs 4 lakh to Rs 8 lakh.

7143 Views Comment Share Service Tax Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :

Seven More Taxable Services w.e.f 1st June 2007

CCI News Desk

Recent News :

Popular News

Trending Online Classes

Browse by Category

Latest Job Openings

Articled Assistant

CA Article Assistant

Account Assistant

Semi Qualified CA

CA Article Assistant

CA/Semi-CA/BCom

Chartered Accountant

Junior Accountant