Govt to pay back undue service taxes: CBEC Chairman
New Delhi, Mar 4 (UNI) The government is finalising a proposal to pay back within 15 days excise duty and service tax to those who have overpaid, CBEC Chairman M Jayaraman said here today.
Addressing a post-Budget interactive meet on 'Budget 2006: Issues and Implications' organised by PHDCCI, Mr Jayaraman answered various queries on taxation raised by industrialists in various sectors. He assured them that these would be addressed and asked them to send written representations to his office.
CBDT Chairman Mrs M H Kherawala said the thrust has been to give an impetus to the infrastructure sector. Referring to direct taxes, Mrs Kherawala said there has been a widening of the tax base and certain provisions had been streamlined, a PHDCCI release said.
The Investor Protection Capital Fund was so far exempted from tax. It is still exempted in terms of contribution by members. But income earned from contribution will be subject to tax. Anonymous donations received by charitable trusts will be taxed at the rate of 30 per cent.
In her welcome remarks, PHDCCI President Sushma Berlia said there was a need to advance the road map of Goods and Services Tax (GST) from 2010. She added that service tax needed an urgent second look. PHDCCI Direct Taxes Committee Chairman Ajay Vohra observed that the proposed increase in MAT was not really palatable.
Delivering the vote of thanks, PHDCCI Secretary General Bibek Debroy said the issue of exemptions needed to be urgently addressed.
A lot of discretion was still floating around in this budget. Nobody had made a mention for removal of exemption on direct taxes in this budget. Only exemptions on indirect taxes had been mentioned.
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