Govt reviewing service tax laws to ensure clarity

Kolkata, Jul 19: The government is reviewing the service tax laws and the committee formed for the purpose would submit its report by the middle of August, chairman of service tax committee T R Rustagi said today.

Mr Rustagi said the committee is looking into possible conflicting and overlapping rules and requirement for any modification in any circular arising owing to conflicting rules.

The committee would also give its input in regard to taxation of business support services, he said on the sidelines of an workshop on service tax rules at the Bengal Chamber of Commerce.

He said the target fixed by the government for collection of service tax at Rs 34,500 crore would be met and the collection might reach Rs 40,000 crore.

Last year the government collected Rs 22,000 crore from service tax, he said.

He said the government had called for integration of goods and service tax by 2010 and it is being examined whether any constitutional amendment is required since both were taxed differently.

The government this year added 15 new services to the service tax net taking the total number of services taxed to 96.

UNI