Service Tax Trends in India | Fiscal Policy | Taxes


Taxes are what we pay for civilized society

Mr.Parth Singh ID. No. 1903 Ist year BA LLB Hons.

pdf. The paper delves into the positive list system of the service tax regime and continuous expansion of the same and the fluctuations in rate of taxation. The services sector has witnessed massive and continuous growth. Ministry of envisaged the growing role of services in the Indian economy and introduced a levy on services to create an additional source of revenue to fulfil the requirements of our fiscal policy.nic.2 The Finance Act of 1994. (last th accessed on 4 April. 2012). 3 Supra note 1. The list of taxable services continued to grow as the robustness of our service sector grew but despite the frequent revision of the list of taxable services. Economic survey of India 2011-2012. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 1 .cbec.4% of the GDP (2011-12).3 which considering the state of our Fiscal deficit. The paper 1 Concept Paper on Taxation of Services based on a Negative List. especially over the last 2 decades. revenue from service tax was barely negativelst. Central Board of Excise and Customs. India expanded the positive list continuously and finally bit the bullet and shifted to a comprehensive tax regime for service tax in the Finance Act of 2012.asp.SERVICE TAX TRENDS IN INDIA INTRODUCTION India‟s service sector is renowned for its size and dynamism. to curtail the fiscal deficit which now stands at 5. 2 Chapter 10. 4 Supra note 2. Government of India (2011). The indirect tax introduced was ideal to meet the dual objective of fiscal management without hampering economic growth and productivity. Our country adopted a selective approach wherein they taxed only specific services to allow for the services sector to continue growing while simultaneously increasing the revenue generation for the government. available at http://www. 2012).6%. (last accessed on 4 April.3 per cent of the GDP and 3 per cent of the tax revenue of the union.1 The Economic survey of India (20112012) reflects the role played by services in helping the economy navigate the turbulence caused by the Eurozone crisis and the recession in economies world Recent trends in service tax policy have dovetailed India‟ fiscal policy. India can ill afford. and today stands at a monumental 64. available at http://indiabudget.4 The paper provides a brief overview of the antecedents and the existing service tax framework in India.

pdf.nic. 5 First Discussion Paper On Goods and Services Tax In India. The Empowered Committee Of State Finance Ministers. 2012 has been analysed. The stated policy of the government to introduce GST5 which will incorporate service tax in India has again been studied as one of the major trends in the policy for taxation of The Introduction of the negative list system by the Finance Act. and service tax itself. 2012). The paper essentially describes the service tax trends and analyses the rationale behind them. th (last accessed on 4 April.SERVICE TAX TRENDS IN INDIA establishes the economic rationale behind the aforementioned trends in service tax. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 2 . available at http://finmin.

..................SERVICE TAX TRENDS IN INDIA Contents Introduction ...................... 6 Trends dovetailing Fiscal Policy:.......................................................................................... 16 NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 3 ............................ 13 Conclusion ..................................................................................................................................................................................................................................................................................................... 15 Bibliography ............................................................................................... 1 Framework ................................... 4 Legal and Administrative Trends in service tax ................................................................................................................................................................................................. 10 Future Trends In Service Tax Policy ................................. 8 Negative List ................................................................................

2006. 11 S. thus. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 4 . Finance Act. 2012). 2011). (last accessed on 5 April. a vital requirement for a developing economy.SERVICE TAX TRENDS IN INDIA FRAMEWORK With the increasing importance of services in the domestic economy. The bit-by-bit nature. 7. Is a negative list for service tax desirable?. 2012). (Snowwhite Publications. A planned growth of service tax will reduce the tax burden on international trade (Customs duty) and domestic manufacturing sector (Excise duty). commensurate with the goals of economic liberalization and it allows the government the flexibility to influence patterns of production and reduce consumption of luxury goods through service tax rates. it has an inbuilt ease of collection and safeguards against tax evasion. 9 th Micheal Todero & Stephen Smith. ECONOMIC DEVELOPMENT.10 S. 9 TREATISE ON SERVICE TAX. Vol. hence the burden of the tax is on the consumer and not on the business. ( last th accessed on 4 April. 10 S Mukhopadhyay. carrying the tax to the point of 8 Since it is levied at the point of consumption. 751. 65(105). Service tax was introduced in 1994 as a levy on services and the provisions of the same are mentioned in Chapter V of the Finance Act of 1994. available at th http://www. which is levied on goods and services and not on income and profits. 65(105) of the Finance Act. 8 th Sanjiv Aggarwal.11 The positive list system has a significant advantage for a nation experiencing an initial boom in its services sector as it helps nascent services avoid the burden of taxation and generates revenue through components of the service sector which are 6 7 All India Federation of Tax Practitioners vs Union Of India. 8 edition. each service is first identified. 2003).1. 1994 lists the services that qualify for service tax. It is an indirect form of taxation. The service tax regime was one of Positive Listing. (Pearson Publications. Under this approach.htm. 223. it has brought under its ambit people who do not pay direct taxes but avail of the services being taxed.. Challenges before the Service Tax Administration in India. 6 It has helped raise the tax revenue for the government so as to fuel economic growth and productivity without damaging the rate of savings in the economy. [2007] 10 STT 166 (SC) (Supreme Court of India).gov. a key outcome of its indirect nature. unlike the lump sum paid in direct taxes. AUG. BUSINESS STANDARD.9 The point of taxation being point of consumption. 1994.7 Moreover. the taxable event is then defined for each identified service and then tax is levied on the occurrence of the event. cushions the impact on taxpayers and does not prompt them to cut down savings. available at http://www.

12 S Acharya. hence it was correct to eliminate these services. most services were furnished by small units which would not have yielded high revenue12 and would have lagged in growth due to the tax burden. Back to the Past?. 15-21. The definition of the taxable event and the situation in which tax liability arises. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 5 .SERVICE TAX TRENDS IN INDIA firmly established. Initially when Service Tax was levied. both inherent in the positive list approach are extremely important for a developing economy. 38(11) ECONOMIC AND POLITICAL WEEKLY 1011 (Mar. 2003).

streamline and fast-track processes with a view to ensure effective implementation of Service Tax. 2011 (India). CBEC has set up multiple commissionaires along with Large taxpayers units16 to accommodate the growing revenue stream. [2007] 6 STT 112 (MAD) (High Court of Madhya Pradesh). 2010). The biggest step forward in terms of the administrative aspect of service tax has been Automation of Central Excise and Service Tax (ACES). (last accessed th on 4 April. The expanding positive list led to a trend of every service challenging their inclusion and high rates of litigation which has been negotiated by the government through the notification of Customs and Central Excise Appellate Tribunal (CESTATs) as the appellate body. PRACTICE AND PROCEDURE OF SERVICE TAX. at 204 th J. 20 a slew of legislative interventions by the central government.13 Consequently. Indian Institute of Architects Vs.. 18 CAG Audit Report No. an e-governance initiative by CBEC which has a huge potential to enhance revenue collection by streamlining the whole process 13 14 Entry 97. through constitutional amendments have been carried out to enable the government to establish clear cut procedures and lay down rules for the imposition of service tax in India.E. 17Anticipating further expansion. Constitution of India.K. Vol.14 The constitutional validity of service tax has been challenged time and again in the courts which have consistently held that the imposition of service tax is not ultra-vires.S. 2012).in/english/home/Public_Interface/In%20_Media/Report_25.C. an office of director General of Service Tax (DGST) has been set up. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 6 . 25 of 2011-12 Union Government (Indirect Taxes) – “Central Excise & Service Tax”. (CCH Wolters Kluwers. with an aim to centralise. th 15 16 17 Supra note 8. Mittal.pdf.II. LAW. 7 Schedule.18 A. Union List. th 95 Constitutional Amendment Bill.SERVICE TAX TRENDS IN INDIA LEGAL AND ADMINISTRATIVE TRENDS IN SERVICE TAX The Union Government utilised the residuary powers vested in it through the Entry 97 of Union List to impose service tax in India. Union of India. available at http://saiindia. 15 Executive Response Service tax is administered by the Central excise department which has been pro-active in its attempts for ensuring high revenue collection through service tax coming out with a slew of rules and notifications to provide clarity to the whole process.

in/aboutaces.SERVICE TAX TRENDS IN INDIA into a user-friendly format. transparency. accountability and efficiency in the indirect tax administration in 2012).19It is a software application which aims at improving tax-payer services. Id. available at http://www. th NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 7 .jsp(last accessed on 4 April.20 19 20 What is ACES..aces.

it rolled out the service tax in a phased year-by-year case by case manner through the expansion of services placed under the positive list. JOURNAL OF ECONOMIC LITERATURE. 23 R.htm. fuelling the nation‟s 21 22 Supra note 8.22 The constant addition year after year to the positive list reflects a clear trend of expanding the tax base in a phased manner to meet the dual objective of controlling fiscal deficit without stalling growth in nascent components of the services sector. 25 Sec. Finance Bill. The fiscal policy of the nation is reflected in the rate of taxation levied by India as the original levy of 5% in 1994 became 12% in 2006.66B. 24 Supra note 17. only 3 services were taxed21. to the Finance Act.nic. Originally. and in extensions the services sector itself. at 206. 1994 and after the 2011 budget. Along with managing fiscal deficit. XXXI. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 8 . Chapter V. is reflected in the way the government used service tax rates to tackle the effects of the economic recession in North America. As part of a financial stimulus to the reeling economy. Supra note 11. the Government of India rolled back the rate of service tax to 10% in 2009. available at http://indiabudget. Here again. 2012).25 so that the services sector continues to grow optimally. services taxed stood at 119. 2.23 The tinkering with rates is clearly reflected in the introduction of Education Cess and SAH education cess on service tax to finance human resource development in the nation. there was a clear expansion in the number of services placed under the positive list by way of amendments from time to time. burgess and S. 2009. There is a clear trend of manipulating the service tax rates to meet the current fiscal objectives as the indirect nature of the service tax provides the government with high levels of immediate flexibility. at 2159-2161. the Indian government did not want to stall the boom being experienced by the services sector hence. 762-830 (1993). (last th accessed on 4 April. 24 The biggest example of the close links between the nation‟s fiscal policy and service tax.SERVICE TAX TRENDS IN INDIA TRENDS DOVETAILING FISCAL POLICY: The Indian government has manipulated the service tax regime to suit its fiscal policy as it conceptualised the service tax as the bulwark against high rates of fiscal stern. ‘Taxation and Development’. the Indian policy of managing fiscal deficit without stalling economic growth is apparent as the rates of taxation were increased in a phased manner. but as the nation‟s service sector grew.

Auerbach & M. 2002). 2012). 1347-1421 .nic. of services under tax net 37482 58319 71174 124000 26 Sec. (edition 1. Chapter V.29 The allowance of CENVAT credit and exemptions granted for export of services30 reflects the forward looking outlook of the service tax regime.). available at th http://business-standard. available at http://indiabudget.SERVICE TAX TRENDS IN INDIA growth. (2006). (last accessed on 4 April. 2004 30 th S Madhavan. Implications of service tax on export of services. Alan J. J. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 9 . Handbook of Public Economics. In the Finance Bill.36 0 Revenue Service Tax rates Crore 199494 410 5 3 199798 1515 5 18 20002001 2612 5 26 20032004 7890 8 62 20062007 12. Feldstein (ed. 2006). (6th Nov. & (last accessed on 4 April. volume 3. 29 Amaresh Bagchi. 28 Auerbach. GoI shifted its focus to fiscal consolidation.24 99 20092010 10.66B. 1876. The trends in revenue collection. Revenue from Service Tax 140000 120000 100000 80000 60000 40000 20000 0 Rs.28 To maintain competitiveness of the service sector. ECONOMIC AND POLITICAL WEEKLY . CENVAT credit and export exemptions coupled with the dual manipulation of the positive list and service tax rates to generate revenue without stalling growth of the services sector has been a pivotal trend of the services sector in India. 85(4) FOREIGN AFFAIRS . The India Model. James Jr. GOI introduced CENVAT credit which allows credit on the service tax paid on the input-service.26 Service Tax falls predominantly on business to business (B2B) services and is thus highly cascading in nature. "Taxation and economic efficiency. TAXING SERVICES: THE WAY FORWARD. BUSINESS STANDARD. 2. in: A. 2012. 39(19). 27 Gurcharan Das.asp. through hidden burden of taxes on production inputs. Finance bill 2012.27 Cascading taxes directly effect competitiveness in the international market and create a bias in favour of imports. positive list and rate of taxation can be clearly can be clearly seen from the graph below.3 117 20112012 10. 2012).3 119 20122013 12. increasing the rate of taxation to 12%.

insurance. available at TAX TRENDS IN INDIA NEGATIVE LIST In June 2000. 35 Data released by RBI for 2009-2010. available at th http://rbidocs. which last stood at 119. 2012). Feb. It recommended. real estate and business services-25. 33 The ever growing positive list. hotels. CBEC in its Concept Paper on Taxation of Services based on a Negative List.servicetax. th 2010. 34 Analysis of Service Tax Revenue. leads to inadequate coverage in addition to raising several avoidable procedural and legal complications”.31 Subsequently. Directorate of service tax. Rustagi and Bijal Ajinkya. “a general and comprehensive extension of the tax to cover all services with a small and clearly-defined exemption list”. it was only a matter of time when the switch to a negative list would have occurred. advocated a model of taxation based on a negative list approach arguing that the resilience of India‟s service sector today is high enough to allow for casting the tax net far and social and personal services-22.89% Financing. 32 Supra note 1. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 10 . (last accessed on 4 April. 33 Supra note 26.. 32 The Finance Bill.11% Out of the mentioned sectors.rbi. (b). 2012 marked a major shift in government policy as the government with an eye on fiscal consolidation changed the service tax regime to a negative list system. THE ECONOMIC TIMES.78% Community. transport and According to data released by the Reserve Bank of India. (a). the sector-wise contribution of services (as % of the service sector) to the Indian GDP is as follows: 35 The sector-wise contribution of services to GDP Construction-13. 4. (c) and personal services have been already brought into the taxation net under the 31 T. an Expert Group headed by M Govinda Rao observed that the “selective approach to taxation of services is undesirable for this violates neutrality in taxation. Time for a negative list of services for taxation?..2% Trade. 34clearly showed the government‟s intent to tax service sector comprehensively. 2012). (last th accessed on 4 April. 2012). (last accessed on 4 April. it can be said that barring community and social services.

A negative list would help to that extent by including within the scope of taxation all the services which are able to escape the tax net currently. 1994 as amended by subsequent Finance Acts. THE ECONOMIC TIMES. 42 Revised Concept Paper on Taxation of Services based on Negative List. Government of India (2011). Ministry of Finance. as laid out by Adam smith. 814. 2012). 2006). A negative list simplifies the taxation regime heavily as it automatically addresses the problem of lack of definitions of terms in the current system as a clearly set out negative list would be useful in crystallizing the boundaries of taxable and non-taxable services and thus also curtailing unnecessary service tax litigation. available at http://www. (last accessed on 4 April. a negative list will help in filling in the gaps in the selective system owing to which various service providers in these sectors are able to escape tax liability. A Bagchi. This is bound to boost revenue for the exchequer as according to the Concept Paper.pdf. and after excluding services provided by the informal sector. (last accessed on 4 exempt-service. approximately 40% of the total services will come into the tax net as a result of the proposed negative list.indiatimes. giving depth to the tax base. available at http://articles. 40 D Sikarwar. However. Towards GST: Choices and 38 Supra note 1. a revised concept paper was released by CBEC which organized the negative list into 9 sectors comprising of twenty-two items. 2010). which leads to a significant revenue leakage for the government 36 and creation of unintended exemptions. 41 Adam Smith.39.38 The existing system has been highly litigious as nearly every service which was added to the positive list has challenged its inclusion and models of business have been created to avoid service tax by exploiting the relative lack of clarity in defining the taxable services.42 While formulating the negative 36 37 Supra note 1. (Apr.40 The negative list would provide immense clarity to the service tax regime which is one of the canons of taxation policy. 2012). 41(14) ECONOMIC AND POLITICAL WEEKLY. India not ready for negative list to tax services. around 20-25% of the total service sector contribution may be charged service tax. as per the specific classification of „taxable services‟ in the Finance Act. 6. (1776).SERVICE TAX TRENDS IN INDIA current policy. various sub-components of these services are still not taxable. 1314 (Apr. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 11 . 37 hampering revenue generation through the services sector. Central Board of Excise and Customs.cbec. Ultimately. 39 Supra note 31.41 In November 2011.economictimes. Main Canons of Taxation in AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF circ/concpt-ppr-velst.

certain construction services. 2012).   Gift or in any other manner a transaction only in (iii) money or (iv) actionable claim. the Government has taken into consideration notions such as administrative considerations. 2012).   Fees payable to a court or a tribunal set up under a law for the time being in force Services listed under the negative list which is enumerated in Sec 66 D. public transport services. http://indiabudget.45 There are multiple doubts that such an overwhelming change would lead to major transitional issues as the existing system has been in place for over sixteen years would have its own 43 Sec. 44 th Sec.nic.asp.SERVICE TAX TRENDS IN INDIA list of services. (last accessed on 4 April. (last accessed on 4 April. 2012). contractual obligations under international bodies and diplomatic missions.43 A lucid but concrete definition of „service‟ needs to be established with exhaustive descriptions for the type of exemptions provided so as to avoid the high rates of litigation plaguing the positive list system and to prevent tax evasion by service providers who exploit the loopholes present in the definition. The negative list includes services such as notified services provided by the Government. Any service provided by an employee to an employer in the course of the employment.66D. RBI and certain governmental bodies. Finance bill Finance bill diplomatic missions. available at http://indiabudget. overarching way and excluding a very limited range of services. Chapter V. 45 th Sec. (last accessed on 4 April. Chapter V. certain educational and health services. available at http://indiabudget.asp. services provided by individuals to Government. social welfare and public utility services.asp. Chapter V. welfare considerations and explicit activities in the nature of services which are within the taxing powers of states. agricultural and animal husbandry services by UN. th NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 12 . Service has been defined in clause (44) of the new section 65B and means – Any activity (or omission) carried out by one person for another in lieu of any consideration. certain financial sector services.44 An examination of this definition shows that the government intends to considerably expand its service tax collections by defining „service‟ in an expansive. international bodies. Judiciary.66D. Finance bill 2012.65B(44). The definition specifically excludes  Any activity that constitutes only a transfer in title of (i) goods or (ii) immovable property by way of sale.nic.

Finance minister Pranab Mukherjee has proposed a multislab structure for GST52. et cetera. 1969). 50 Supra note 5. 2010.nrcth cnrc.46 FUTURE TRENDS IN SERVICE TAX POLICY The Indian Tax system is undergoing a process of constant reform as it slowly moves away from the Musgrave‟s early stage framework47 to the modern taxation system. tax on consumption or sale of Musgrave. available at http://discover-decouvrir. entry tax. Carnival of the Tax Gods : Service Tax Concept Paper ahead of the Goods and Services Tax — Wide menu at the long table. Correspondingly. Jul 21. 2012).A.SERVICE TAX TRENDS IN INDIA inertia against change. taxes on transportation of goods and services. (last accessed on 4 April. 49 The CBEC Concept Paper states“there are advantages in moving towards negative list at an earlier time in order to gain useful experience in its implementation and minimize the impact of the mammoth changes that GST may usher.cisti-icist. Sales Tax in Canada: The GST-HST-QST-RST “System”.48 It is pretty apparent that the introduction of the negative list has been carried out with an eye on introducing the GST. 52 Pranab Mukherjee moots three rates for rollout of GST. 48 Supra note Goods:20% Services:16% Essential Items:12% There is extreme controversy over GST with many states fearing for their fiscal independence and inefficient tax administration due to lack of synergy between state and 46 P Ravindran.49 Given the federal structure of India. 2012).” Supra note 1. (last accessed on 4 April. the future of service tax is the Goods and Services Tax. The implementation of GST will lead to the abolition of other taxes such as octroi. 51 RM Bird and Pierre-Pascal Gendron. India has proposed a dual GST system50 which closely resembles the Canadian model51 which aims to demarcate separate services for taxation by the centre and the state. telecom licence fees. 47 R. State-level sales tax. stamp duty. turnover tax. (Yale University Press. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 13 . 63 Tax Law Review 517 (2010). DNA. FISCAL SYSTEMS.dnaindia. Central Sales Tax. available at th http://www. thus avoiding multiple layers of taxation that currently exist in India.

NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 14 .SERVICE TAX TRENDS IN INDIA central tax authorities. 53 Supra note 46. 53 There has been debate over what comprises essential items and what do not comprise essential items as various sections of the economy try and grapple with each other to avoid GST.

It is hoped that the definition provided by the government clarifies and simplifies the framework and avoids the litigious route the positive list had to undergo. India has been consistently optimistic about the growth in services sector and the subsequent revenue it stands to gain but it has been pragmatic enough to apply a phased approach to]]in expanding the service tax base and increasing the service tax. India has begun to shed its inhibitions regarding taxation of services. The negative list will not only widen the tax base but also provide depth by plugging loopholes through its comprehensive nature. There is also the burgeoning question of getting the states on board and establishing synergies between the various taxation authorities in our country to effectively administer an uniform taxation system. to increase government revenue and rein in the fiscal deficit which has taken a further hit due to the global economic slowdown and the recent weakening of the rupee and stands at 5. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 15 . Service tax trends have dovetailed India‟s fiscal policy ambitions therefore the introduction of the negative list system makes an attempt to widen the tax base and bring in more services into the taxation net. The introduction of the negative list system in 2012 has been as much about fiscal consolidation as it has been about facilitating an eventual shift towards the GST. GST is the future of the service tax policy in India. that the Indian services sector has achieved critical mass and still continues to grow at rapid rates. The future trends in taxation of services and realisation of its true potential depends on how well the government manages fiscal consolidation and the transition from the positive list to negative list and subsequently the advent of GST. so as to not stall the explosive growth enjoyed by India‟s service sector.SERVICE TAX TRENDS IN INDIA CONCLUSION The Service Tax policy of our nation has been of optimism checked by pragmatic principles. Now.6%. The dual objective has been the cornerstone of the service tax policy defining the service tax trends in India. India needs to ensure that the dual system to be followed under the GST doesn‟t end up becoming as complex and laborious as the present archaic system.

nrc-cnrc.. 762-830 (1993).ca/eng/article/?id=19293111.jsp(last accessed on 4th April. Gurcharan Das. 85(4) Foreign Affairs . available at http://discoverdecouvrir. AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS. "Taxation and economic efficiency. What is ACES. Practice and Procedure of Service Tax. S Acharya. P Ravindran. R. 2012) 10. available at http://www. 1314 (Apr. 2006). 41(14) Economic and Political Weekly. Mittal. Journal of Economic Literature. burgess and S. MG Rao. volume 3. Adam Smith.K. 6.SERVICE TAX TRENDS IN INDIA BIBLIOGRAPHY Articles 1. XXXI. vol. Auerbach & M. BOOKS 1. Auerbach.). James Jr. 2. 20-26. RM Bird and Pierre-Pascal Gendron. 38(11) Economic and Political Weekly 1011 (Mar. Towards GST: Choices and Trade-offs. 2003). Feldstein (ed. Economic and Political Weekly . The India Model. 63 Tax Law Review 517 (2010). 7. 20th edn. 4. 5. 2. 2010). Sales Tax in Canada: The GST-HST-QST-RST “System”. 39(19).gov. Taxing Services: The Way Forward. 2004 8. Law. 2001). 1521. A Bagchi. (1776). (last accessed on 4th April. (edition 1. Back to the Past?. (CCH Wolters Kluwers. (2006).II. 2. 2002). in: A. Handbook of Public Economics. Amaresh Bagchi.gc. NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 16 . „Taxation and Development‟.aces. J. 36(42) Economic and Political Weekly 3999 (Oct. J. Carnival of the Tax Gods : Service Tax Concept Paper ahead of the Goods and Services Tax — Wide menu at the long table. Taxing Services: Issues and Strategy. 9. 8-14. & Hines. 2. Alan J.. 1347-1421 . 3. stern.cisti-icist. 2012).

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available at http://www. STATUTES 1. 25 of 2011-12 Union Government (Indirect Taxes) – “Central Excise & Service Tax” NATIONAL LAW SCHOOL OF INDIA UNIVERSITY PAGE 18 . The Economic Times. 3. 4. 2012). 2010. 2012). 2011 (India). Rustagi and Bijal Ajinkya. available at http://business-standard. 2012(India). 2003. available at 2010. 3. 2. Jul 21. 7. Pranab Mukherjee moots three rates for rollout of GST. Economic Survey of India (2011-2012) 2. Business Standard. T. S Mukhopadhyay. (6th Nov. Finance Bill. 4. Business Standard. 2012).SERVICE TAX TRENDS IN INDIA 2. Finance Acts of 1994. 5. REPORTS 1. 95th Constitutional Amendment Bill. Time for a negative list of services for taxation?. 2009. CAG Audit Report No. Feb. Implications of service tax on export of services. 2012). (last accessed on 4th April. 2006. 2006. S Madhavan. 2006). (last accessed on 4th April. 2011 (India).dnaindia. DNA. Is a negative list for service tax desirable?. (last accessed on 4th April. ( last accessed on 4th April.

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