Financial Daily from THE HINDU group of publications
Monday, Mar 13, 2006
Financial Daily from THE HINDU group of publications Monday, Mar 13, 2006 |
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Taxation Columns - Sticklish Issues More services under the tax net
Customers are charged for ATM services. The dealers with banks should be compensated for late transactions, if any. T. V. Jayaprakash, Palakkad Service tax started initially as an additional revenue generating measure. It is certain many more areas will be covered in future Budgets. It has an indirect impact on the common man and costs him his savings. S. Krithivasan, e-mail The Finance Minister has increased the service tax from 10 to 12 per cent. He believes this increase in will add to the coffers. It is more likely to drive the public to their coffins. If the Finance Minister does not withdraw the hike, his party is likely to face a fallout, come Assembly elections R. Swaminathan, Tiruchi The ABC of service tax may be Adequacy, Buoyancy of revenue and Continuity till it covers all the services — a gold mine. Because most of the taxes will be ultimately passed on to the people, it needs to be prioritised. For example, when ATMs are picking up, even in rural areas and helping farmers, why not defer it? A. Jacob Sahayam, Thiruvananthapuram Before the Budget, the service tax net covered 81 services. Now the number of services under the tax net has been increased to 99. Also, the rate of service tax has been increased to 12.24 per cent from 10.20 per cent. It seems that there will be no end to this exercise. It has been the usual practice of finance ministers to gradually increase the tax rate and spread it across more items, services etc. In this connection the story of a camel first asking for a shelter for its head, then for its legs and finally occupying the entire space comes to my mind. S. Nallasivan, Tirunelveli
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