In upcoming budget finance minister may announce to increase the service tax.
Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.
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  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    If the service tax rate is raised, all commodities and services will be costly. This may go against the promise to check prices. If the rate of service tax is increased, transportation service should be fully exempted so that price rise is somewhat kept in control.

    G. K. Ajmani Tax consultant
    http://gkajmani-mystraythoughts.blogspot.com/


  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html

    Pay no mind to those who talk behind your back, it simply means that you are two steps ahead !!!


  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html


    The incidence of service tax is not entirely 12% or if increased to 14%, as it is only on the service component of the total product delivered costs and is decided by the IT authorities. In case of restaurants it is usually around 5%. However any tax rise is usually resisted by payers which is a normal reaction. Budget exercise generally consists of giving away with left hand and taking it back by the right hand. Finance ministers ultimately become unpopular because they cannot please every one but can displease every one.

    Thank you said by: usha manohar

  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html


    The incidence of service tax is not entirely 12% or if increased to 14%, as it is only on the service component of the total product delivered costs and is decided by the IT authorities. In case of restaurants it is usually around 5%. However any tax rise is usually resisted by payers which is a normal reaction. Budget exercise generally consists of giving away with left hand and taking it back by the right hand. Finance ministers ultimately become unpopular because they cannot please every one but can displease every one.


    As long as they are able to balance their years budget I guess it is ok since complaints will always be there !

    Pay no mind to those who talk behind your back, it simply means that you are two steps ahead !!!


  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html


    The incidence of service tax is not entirely 12% or if increased to 14%, as it is only on the service component of the total product delivered costs and is decided by the IT authorities. In case of restaurants it is usually around 5%. However any tax rise is usually resisted by payers which is a normal reaction. Budget exercise generally consists of giving away with left hand and taking it back by the right hand. Finance ministers ultimately become unpopular because they cannot please every one but can displease every one.


    As long as they are able to balance their years budget I guess it is ok since complaints will always be there !


    Annual budgets in developing economies are rarely surplus budgets. 5%-10% deficit budgets are usually the norm. The deficit is deliberately introduced so as to get more projects off the ground. So an imbalance of 5-10% should not be a cause for concern. The real concern in Indian budgets is the very high element of subsidies which are not generating any returns and are an unproductive burden. Removing them or significantly reducing them requires a brave political decision.

  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html


    actually, the BJP as well as Congress have same economic policy which is to give more relief to the super rich and rich. Higher income tax exemption benefits them. On the othr hand higher service tax will increase cost of all services and also commodities that use vareious services including transportation as input. Balancing act would be more appreciated if income tax rate were increased and service tax/ central excise duty reduced.

    G. K. Ajmani Tax consultant
    http://gkajmani-mystraythoughts.blogspot.com/


  • Re: Government planning to increase the Service tax from 12 percent to 14 percent.

    by » 6 years ago


    In upcoming budget finance minister may announce to increase the service tax.
    Which would although increase revenue for Government but it would be unnecessary burden on common man, as they have to spent extra money on restaurant bills, parlor, or buying anything etc.
    Is it really necessary to put pressure on common man always instead of focusing more productivity infrastructure and other earning source.


    Ultimately the finance minstry has to balance its budget , since there is also a proposal to increase the minimum bar of taxable income it will be a little more helpful...It was increased 2012 by the UPA from 10% to the present 12% and now with the economy in doldrums , this is probably a necessary step.Anyway this tax is for the upper middle class who visit restaurants and parlors frequently and other services not used often by all..
    http://businesstoday.intoday.in/story/union-budget-2014-service-tax-hike-expected/1/207842.html


    actually, the BJP as well as Congress have same economic policy which is to give more relief to the super rich and rich. Higher income tax exemption benefits them. On the othr hand higher service tax will increase cost of all services and also commodities that use vareious services including transportation as input. Balancing act would be more appreciated if income tax rate were increased and service tax/ central excise duty reduced.


    I keep my fingers crossed, how good a balancing act the new government is going to do in the Parliament sessions going to start from today.

    Thank you said by: Gulshan Kumar Ajmani

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