Changed Role of Service Sector And Enhanced Service Tax Revenue An Introspection

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Balachandran, Dr. V ; Malini, K Hema (2013)
  • Publisher: Journal Of Business Management & Social Sciences Research
  • Journal: Journal Of Business Management & Social Sciences Research (issn: 2319-5614, eissn: 2319-5614)
  • Subject: Service Tax, Service Sector, Gross Domestic Product, Revenue generation, Taxable Services, Goods and Services Tax. | Business Management; Financial Management
    acm: ComputingMilieux_GENERAL | ComputingMilieux_LEGALASPECTSOFCOMPUTING

The present paper attempts to evaluate the performance of service tax in India in terms of revenue generation, assessee base and its share in the total tax kitty of India. In addition, the relative position of the share of service sector and service tax in relation to GDP and total tax revenue of the country has also analyzed. The analysis of data reveals that service tax in India is progressing faster in terms of revenue collection, assesse base and even service tax collection per assesse and per service but it has failed to meet the incredible growth in revenue generation by the service sector. Although service sector accounts for more than half GDP of India, tax experts perceive that service tax has abundant potential for revenue generation. This fact attracts the attention of the government and hence, the broad based Goods and Services Tax (GST) is proposed to implement in 2013-14 in order to garner substantial tax revenue from the service sector.
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