Rediff Logo
Money
Line
Channels: Astrology | Broadband | Chat | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding
                 Women
Partner Channels: Auctions | Auto | Bill Pay | Jobs | Lifestyle | TechJobs | Technology | Travel
Line
Home > Money > Budget 2001 > Reuters > Report
February 23, 2001
Feedback  
  Money Matters

 -  Business Special
 -  Business Headlines
 -  Corporate Headlines
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      



 
Reuters
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page

Government favours bringing more services under tax net

ECONOMIC SURVEY

The government is in favour of bringing in more services under the tax net to offset a likely loss of revenue through lower customs tariffs, a government document said on Friday.

"The growing contribution of services to GDP (gross domestic product) makes the sector conducive for mobilisation of greater resources," the Economic Survey for 2000/01, a report card on the economy, said.

It said a technical panel on the issue had submitted its report and its implementation would help in setting up an economically rational service tax that can be integrated with the central value added tax (CENVAT).

"A comprehensive service tax combined with an efficient CENVAT could help in raising indirect tax revenues to the levels that prevailed earlier.

"This would also make it possible to continue with customs duty rate reductions.

"Our basic (protective) customs duty rates are still among the highest in the world and there is broad agreement on the need for reducing them to Asian levels," the survey said.

Imposing a service tax on the revenues of India's booming software companies is one of the toughest issues confronting Finance Minister Yashwant Sinha as he prepares to unveil his budget on February 28.

Economic Survey 2000-2001
Budget 2001
Money

EXTERNAL LINK:
Read the Economic Survey

Back to top
(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report