Financial Daily from THE HINDU group of publications
Friday, Mar 10, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 10, 2006 |
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Opinion
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Letters Service tax
Budget 2006 is not as rosy as it appears. There is an increase of service tax from 10 per cent to 12 per cent. With an education cess of 2 per cent, the effective rate is 12.24 per cent. Since most services are covered under the service tax, these tax proposals will fuel inflation and drive up prices of almost all commodities. As the service tax is on gross receipts unlike income tax — where only the net income is taxed — collections of this levy go to a much higher amount from the same level of business activities of an entrepreneur. The exemption limit for service tax should have been increased to Rs 10 lakh. Mahesh Kapasi New Delhi
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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