'Final draft guidance paper on taxation of services by July 1'
The final draft guidance paper on the proposed budgetary changes in taxation of services would be released before July 1, a senior government official said Monday.
Chennai: The final draft guidance paper on the proposed budgetary changes in taxation of services would be released before July 1, a senior government official said Monday.
"A guidance paper has already come out after the Budget (was presented by Finance Minister Pranab Mukherjee) this year. A revised guidance paper would come out soon...," Central Board of Excise and Customs Special Secretary and member J M Shanti Sundharam told reporters here on the sidelines of a Ficci seminar.
"The final draft guidance paper will come before July 1... Because the new taxes will come into effect from then," she added.
Calling for more awareness among the public, she said such seminars were being conducted across the country and it has been held earlier in Ahmedabad and Kolkatta.
"We are all moving towards GST (Goods and Services Tax). The basic idea of implementing them is that the cascading effect of new taxes does not affect the common man. This is a movement towards GST," she said.
When asked about introduction of GST, she said, "We have to wait and watch".
Under the new Service Tax, only 17 services are in the 'negative list', which cannot be subjected to tax. At present, 119 services are levied.
The "negative list" approach was proposed in the Budget. The Finance Ministry had said the new service tax regime would come into force from July 1 and the government aims to garner Rs 1.24 lakh crore from service tax during 2012-13.