Record Details

Taxation of Services in India: An Overview

VISION: Journal of Indian Taxation

View Archive Info
 
 
Field Value
 
Title Taxation of Services in India: An Overview
 
Creator Jain, Sandeep; FCA, Chartered Accountant, Senior Partner - SKC, Delhi
 
Subject Service tax, State taxes, Services, Tax revenue
 
Description Service sector is very wide in its range. It includes, inter alia, health care, education, social security, leasing, entertainment, credit rating agencies, telecommunications, transport, publicity and advertising, insurance, banking, legal and financial services. From equity point of view, services should be taxed in the same way as goods. Taxation of goods and exclusion of services distorts the relative prices of goods vis-à-vis services, encouraging artificially the demand for services. In the process, the allocation of resources is also distorted. If tax is imposed on goods and not on services, a relatively high rate of tax would be required on goods to generate a given amount of revenue. If tax is imposed both on goods and services, a moderate tax rate can yield the given revenue. Administratively, taxation of both goods and services is desirable because it would reduce disputes pertaining to distinction between goods and services. Like goods, services can also be classified into two broad categories: essential services (e.g. health and education) and luxury services (e.g. entertainment and tourism). The rationale for exemption/lenient tax treatment of essential services is the same as for essential goods. Similarly, luxury services should be taxed at a high rate like luxury goods. This paper explains and examines the functioning of service tax in India
 
Publisher Journal Press India
 
Date 2015-06-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.myresearchjournals.com/index.php/VISION/article/view/2424
10.17492/vision.v1i2.2424
 
Source VISION : Journal of Indian Taxation; Vol 1, No 2 (2014)
2347-4475
 
Language eng
 
Relation http://www.myresearchjournals.com/index.php/VISION/article/view/2424/2353
 
Rights Copyright (c)
VISION : Journal of Indian Taxation