Over 300 times increase in service tax revenue in two decades
New Delhi: Revenue from service tax, which has become a new focus area for Finance Ministry, has grown up substantially by over 300 times in past about two decades.
The Finance Ministry has earned revenue of about Rs 1.32 lakh crore in 2012-13 (provisional figures) compared to Rs 407 crore in 1994-95, according to official data.
The target for 2012-13 was Rs 1,32,697 crore but the actual realisation was Rs 1,32,518 crore.
The number of assessees have also gone up by over 400 times since 1994-95.
There were about 17.12 lakh registered assessees for the levy during 2012-13 from only 3,943 in 1994-95 when service tax was introduced, it said.
The service tax revenue has shown huge growth in the past years with surge in number of services being covered under it which resulted in quantum of registered assessees too.
The government has earned a revenue of Rs 23,055 crore in 2005-06, Rs 37,598 crore in 2006-07, Rs 51,301 crore during 2007-08, Rs 60,941 crore in 2008-09, Rs 58,422 crore in 2009-10, Rs 71,016 crore during 2010-11 and Rs 97,509 crore in 2011-12, the data said.
A revenue of Rs 862 crore was received in 1995-96, Rs 1,059 crore in 1996-97, Rs 1,586 crore during 1997-98, Rs 1,957 crore in 1998-99, Rs 2,128 crore during 1999-2000, Rs 2,613 crore during 2000-01, Rs 3,302 crore in 2001-02, Rs 4,122 crore during 2002-03, Rs 7,891 crore in 2003-04 and Rs 14,200 crore during 2004-05, it said.
The number of service tax assessees have also grown up during this period.
There were 8,46,155 service tax assessees in 2005-06, 9.40 lakh in 2006-07, 10.73 lakh during 2007-08, 12.04 lakh in 2008-09, 13.07 lakh in 2009-10, 13.72 lakh during 2010-11 and 15.35 lakh in 2011-12, the data said.
The total number of taxable services has also increased from three in 1994 to 119 in 2012. The Finance Ministry had from July 1, last year introduced the concept of taxation of service tax based on the 'negative list' which authorised government to tax almost all the services mentioned in Section 66D of the Finance Act.
The Finance Ministry is also implementing a first-of-its- kind of amnesty scheme for service tax defaulters.
The 'Voluntary Compliance Encouragement Scheme or (VCES), which is being implemented from passage of this year's Finance Bill on May 10, allows a service tax defaulter to pay dues without any penalty or late payment charges.
Under the scheme, a person may make a declaration to the designated authority on or before December 31, 2013.
The ministry has set an indirect tax collection target of Rs 5.65 lakh crore for 2013-14, through customs, excise and service tax. That figure is up from the Rs 4.73 lakh crore collected in the last fiscal.