Service tax 18 Million $ in Nagpur
Addition of newer services in the network of Service Tax has yielded good results to the Government. In Nagpur Zone, the collection of revenue from Service Tax has jumped 12.47 per cent or Rs 90 crore.
Customs, Central Excise, and Service Tax, Commissionerate, Nagpur Zone has collected Rs 819.88 crore of Service Tax revenue in 2008-2009 as against Rs 728.99 crore mopped in 2007-2008.
The Nagpur Zone covers three Commissionerates — Nagpur, Nasik and Aurangabad. In the financial year 2008-2009, Nagpur collected Rs 384.40 crore which was Rs 338.76 crore in the year ago period showing an appreciation of Rs 45.64 crore (13.47 per cent). Nasik mopped Rs 2,09.19 crore in 2008-2009 against Rs 193.21 crore collected in 2007-2008, showing a rise of Rs 15.98 crore (8.27 per cent). Likewise, in 2008-2009, Aurangabad collected Rs 226.29 crore as compared to Rs 197.02 crore collected in 2007-2008, showing an increase of Rs 29.27 crore (14.86 per cent).
In Nagpur Commissionerate, there are 18,763 assessees who are entitled to pay Service Tax. K L Bablani, Chief Commissioner, Nagpur Zone, said that there are several assessees whose head offices are situated out of Nagpur Zone due to which their figures are not been reflected in the collection. He said that the department was continously monitoring the trends in market and conducting survey so that no one can evade from paying the tax. In Nagpur Commissionerate there are top 10 services like transport of goods by road availed by 2,254 assessees who had contributed Rs 41.58 crore during the year 2008-2009. In banking and other financial services, there are 1861 taxpayers who shell out Rs 26.13 crore. Businesss auxillary services and maintenance, management services contributed Rs 23.10 crore (1709 assessees) and Rs 22.07 crore (1708 assessees) respectively. There are 107 services that fall under the ambit of Service Tax.
Service Tax is a form of indirect tax imposed on specified services called “taxable services.” Service Tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, Service Tax been expanded to cover new services. The objective behind levying Service Tax is to reduce the degree of intensity of taxation on manufacturing and trade without forcing the Government to compromise on the revenue needs. The intention of the government is to gradually increase the list of taxable services until most services fall within the scope of Service Tax. For the purpose of levying service tax, the value of any taxable service should be the gross amount charged by the service provider for the service rendered by him. Service Tax was first brought into force with effect from July 1, 1994. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India. Initially only three services were brought under the net of service tax and the tax rate was 5 per cent. Gradually more services came under the ambit of Service Tax. The rate of tax was increased from 5 per cent to 8 per cent w.e.f May 14, 2003. From September 10, 2004 the rate of Service Tax was enhanced to 10 per cent from per cent. Besides this 2 per cent education cess on the amount of Service Tax was also introduced. In the Union Budget of India for the year 2006-2007, service tax was increased from 10 per cent to 12 per cent. On February 24, 2009 in order to give relief to the industry reeling under the impact of economic recession, The rate of Service Tax was reduced from 12 per cent to 10 per cent.
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