Service Tax is proposed to be levied on all services except those provided in Negative List.
Service is defined to “mean anything which does not constitute supply of goods, money or immovable property” A number of specific inclusions or exclusions were further elaborated.
The charging section somewhat as follows:
“There shall be levied a tax (hereinafter referred to as service tax) at the rate of ... per cent of the value of services provided or to be provided by a taxable person to another person and collected in such manner as may be prescribed.”
The above charging section is illustrative in terms of the present scheme of taxation and the same will naturally look quite different if the negative list is introduced alongwith the GST, capturing all the various activities that will be brought within the purview of the GST.
Taxable person may be defined as: “any person who independently carries out any economic activity, whether or not for a pecuniary profit”.
Thus the impact of all the proposed charging section will be to confine taxation to transactions in services carried out with another person by a person engaged in an economic activity on his own account
Check this link out for discussion paper on Revised Concept Paper on Taxation of Services based on Negative List:
http://www.cbec.gov.in/concpt-ppr-velst.pdf
No comments:
Post a Comment