Time to lower Service Tax Rate to 8 per cent

NEW DELHI. 11th December 2008.

 

When Central Excise Duty (CENVAT) rate has been lowered from 14 per cent to 10 per cent  on all non-petroleum products effective from 7th December 2008 vide serial No.10 of Notification No. 58/2008-Central Excise; it is time for the Government to lower service tax rate from 12 per cent to 8 per cent to give a boost to service sector facing economic slowdown and recession.

 

The existing service tax rate comes to 12.36 per cent when Education Cess of 2 per cent and SHE (Secondary and Higher Education Cess) of 1 per cent is added to it.

 

Medium and Small Service providers are already feeling the heat of recession and many are finding it tough to sustain their expenses with slow down in orders at hand due to postponement of many projects.

 

Government is set to come out with another Package very soon and service tax reduction should be a part of such Package for relief to service sector.

 

(Source: Allindiantaxes)

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