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Monday, Jan 10, 2005

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Service tax for all

The onus of service tax collection on goods transport has now shifted from the service provider to the consigner/consignee of the goods.

On all the other services where service tax is imposed, the service provider is liable to charge the service tax, for example salons, repairs and service, clearing and forwarding, interior and civil work, studios, CAs, etc.

When the same tax can be collected from the minority service providers, why should you collect it from the users of the services?

There are many grey areas, which will lead to harassment to trade and industry.

Does the service tax department have manpower and expertise to collect this service tax from every nook and corner of the country?

In an inflationary, disaster-hit economy, I urge the finance minister to keep rethink implementation of the tax and understand the problems of the trade, industry and its own department's capability before taking it further.

Sushil Mehra

Bangalore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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