All you need to know about the Service tax changes in 2017-18
In the country like India, taxation is the major source for the development of the nation. In order to improve the taxation amounts recently the central government of India taking several innovative and detonative steps to boost people to pay their taxes in right time.
Demonetization in India
Mr. Modi had taken historical move by banning the higher value Indian currency amount from the public on the past November 2016. Right from there lots of new rules and policies which gets implemented by the NDA government led by Mr. Modi in recent time.
Though, the lower class people and poor people especially those who depend upon their daily wages get affected. Still there are some significant amount supports among the people over the move as they believe it would provide several fruitful things in nearby future. Today the 1st of February 2017, the current finance minister of India Mr. Arun Jaitley is about to submit the union budget of India 2017 shortly in the parliament house.
The Union Budget of India 2017
Since this budget session of 2017 falls right after the impact of demonetization, also the central government and the finance ministry said there has been improvement in tax amount collected from the public recently.
Though, one can expect several changes in the tax slabs, tax rates changes in the upcoming budget 2017 section in the parliament today, mostly those are about to be in favor of the common people of the nation. The nation is about to experience the higher service taxes in the upcoming budget section.
In general the service tax is an indirect form of taxation amount collected from the common man of the country. As per the rule quoted in the Service Tax Rules which implemented on 1994, the person who may be the service receiver or service providers are liable to pay significant amount as the taxes to the government. So far now, the common people of the nation are paying around 15% as the service tax amount.
Expected Service tax changes in the upcoming budget 2017
With lot of expectation in the upcoming budget section, the experts in the nation believe that the service tax amount would be increase to the range 16-18%.
However, some believes there would be lower service taxes for the basis amenities/services which would be below the existing one somehow to be around 12% and for the other services would face the increase taxation amount around 18%.
In addition, is it to be noted that in nearby future the central government is about to implement the GST which will itself gets higher tax amount from all the states.
Key points about Service taxes in India
- As per the data released by the finance ministry, around Rs. 2.3 Lakh has been collected as the service tax amount for the past finance year of 2016 – 2017. Where the net taxation amount which collected was R. 16.3 Lakh Crore.
- If there has been a increase in the service tax amount means, it will be the third time the people of India is about to face the service tax hike from the current finance minister Mr. Arun Jaitley.
- Previous tax hike was implemented from 12.36% to 14% on June 1st of 2015, eventually with few month gaps it has been raised by another 0.5% by adding Swachh Bharat Cess in November 2015. And in the past budget section a Krishi Kalyan Cess has been included which results another 0.5% hike in the service tax amount.