STEP CLOSER TO THE GOODS AND SERVICE TAX (GST)

Dated:- 25-6-2012 – STEP CLOSER TO THE GOODS AND SERVICE TAX (GST) PRESS RELEASE, Dated 20-6-2012 1. In a function held today (20-6-2012) in North Block, Hon'ble Finance Minister released the Guidance Paper on the new approach to service tax. The public release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST). 2. The release of the Guidance Paper on the new approach marks the end of the positive list based selective approach to taxation of services, which is in vogue since 1994. The Guidance Paper has become necessary to explain the changes which have been brought about as a result of the new approach. The Guidance Paper brings out in a lucid language, the magnitude an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

. 4. The Hon'ble Finance Minister further opined that the new approach is not a revenue augmentation measure but intended to make compliance simple and administration of service tax law easier. 5. While releasing the Guidance Paper Hon'ble Finance Minister also announced some new exemptions as follows: (a) Service provided by advocates to other advocates and business entities upto a turnover of ₹ 10 lakh in the preceding financial year. (b) Exemption to firm of advocates on the same lines as individual advocates. (c) Auxiliary educational services and renting of immovable property provided by educational institutions in respect of education exempt from service tax. (d) Exemption to services provided to Government and local authorities also extended to governmental authorities, government authority defined as any entity established by a special law with 90% or more control by Government and set up to carry out any of the functions entrusted to municipalities under Article

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

conveniences such as provision of facilities of bathroom, washroom, lavatory urinals or toilets. With the new additions, the number of exemptions in the 'mega exemption' notification, popularly referred as 'exempt list' has gone up to 38. 6. The Hon'ble Finance Minister observed that the final version of the Place of Provision of Services Rules, 2012 is already issued, which has the potential to serve as a framework for discussion on the inter-state taxation of services under the GST. He complimented his team of officers in the Tax Research Unit, Chairman, CBEC and the Finance Secretary for putting forward their best efforts to make the new approach to taxation of services, a reality. Observing that revenue collections from service tax have grown to more than ₹ 97,000 crore which reflects both the impact of new policy initiatives and improved compliance. Hon'ble Finance Minister said that during the first two months of the current fiscal, service tax reven

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =