Twenty years ago there was no Service Tax. Constitution was amended and Service Tax was brought in. It began at 5% on some items. Later it went up to 8%, 10% and 12%. After the depression of 2008 it was brought down to 10%. Now it is back to 12%. More items came under Service Tax. Now all items except 17 in the negative list are covered by Service Tax. All Indians pay Service Tax directly or indirectly. Most Indians own mobile phones and they pay Service Tax when they recharge or pay bills.
Tag: service tax
Comments on Budget 2009
My comments on Budget 2009-10 are as below: Tax exemption limit should be same for all categories. It can be Rs.1,60,000/- or Rs.1,90,000/- or Rs.2,40,000/-. It was expected that it would be raised Rs.2,00,000/-. As it did not happen there was disappointment. Abolition of Fringe Benefit Tax is good. Minimum Alternate Tax should not have…