News Flash
  • Circular for Creation of User Id for WCO e-learning module 'CLiKC' Click Here
  • Verification of Options (for information purpose only) for the candidates selected through Steno Grade- II Examination 2017 - Click here Click Here
  • Circular 102/21/2019-GST slightly amended to rectify an inadvertent error.
  • One-day Workshop/training on "Capacity building on GeM Procurement" along with Corrigendum on 29.07.2019 at NACIN, Faridabad - reg.Click Here
  • Four-Days' Refresher Training on GST for Group 'A' officers of CBIC, to be conducted from 30th July to 2nd August, 2019 at NACIN, Faridabad.Click Here
  • Calling of Nomination for UNODC E- learning Programme Click Here
  • Calling for willingness for the post of (1) Sr.P.S (2) Inspector and (3) Executive Assistant in NACIN, Chennai on deputation basis..- Please click here
  • Postponement of Two Days Training on "3-Is (Intelligence, Information & Investigation)" at NACIN, Faridabad from 11-12 July, 2019 to 22-23 July,2019.-Click here
  • One-Day Training on "Authorized Economic Operator (AEO) Scheme" for Group 'A' and Group 'B' Officers of CBIC on 19th July, 2019 at NACIN, Faridabad.-Click here
  • Second press release for clarification on annual return and reconciliation statement issued.
  • Call for information from all Commissionerates and Directorates for Lok Sabha Un-starred Question regarding "Internal Complaints Committee".-Click here
  • Corrigendum to Result of Customs Broker Examination -Click here
  • CBIC has enabled Central Excise and Service Tax Duties payment collection from ICEGATE via NEFT/RTGS. The payment module can be accessed from www.cbicpay.icegate.gov.in. .Please click here for detailed advisory.
  • Updated versions of GST - Concept and Status, and GST - An Update as on 01/07/2019 have been uploaded.
  • GST MSMEs Booklet released by Hon'ble FM-Click here
  • CGST Rules, 2017 as amended up to 28.06.2019 have been uploaded
  • Circular 97/16/2019-GST amended to extend the last date forfilingofintimation for availing the alternative Composition scheme for suppliers of services to 31.07.2019.
  • Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange - reg.-Click here
  • Removal of Difficulty Order issued to extend the due date for furnishing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C till 31st August, 2019.
  • Corrigendum - Cadre re-organisation of field formations under CBIC - allocation of revised cadre strength-Click here
  • List of officers to be given Commendation Certificate on 2nd GST Day to be celebrated on 1st July, 2019-Click here
  • Calling of nomination for Training on Drug Law Enforcement,identified in APR 2016-17,to be conducted at NACIN Faridabad on 18-19 July, 2019 -Click here
  • The Departmental exam for promotion of Tax Assistants (TA) to the grade of Executive Assistants (EA) in Customs and Central Tax Depts will be held from 16th to 18th September 2019 . The relevant circulars and Syllabus can be viewed through this link. -Click here
View all

5.Challenges Before the Service Tax Administration in India.

            Service tax administration in India has before it multi-dimensional challenges. Some of them are related to the very nature and growth of service sector in the economy and others relate to procedural aspects of the service tax collection.

            The growth of service sector at a high rate offers opportunities as well as challenges to bring under the tax net hitherto uncovered services. This offers tremendous revenue potential to the Government. It is expected that in due course Service Tax would reduce the tax burden on international trade (Customs duty) and domestic manufacturing sector (Excise duty). So a planned growth of service tax would be commensurate with the goals of economic liberalization and globalization. This process requires levy of taxes on new services without substantial rise in the rate or cost of collection.

          The proposed Goods and Service Tax is a part of the tax reforms that centre around evolving an efficient and harmonized consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the Central and State level. The existing Service Tax System poses an imminent challenge, to reform its synergies, to eventually harmonize itself in the GST regime, as and when it is rolled out. Successful integration of goods and service tax would give India a world-class tax system and will bring in improved tax collection. In a way, it will boost our economy and enable us to compete at the global front. As a result, our system will eventually match the international standard in the sphere of indirect taxation. It will also end the long standing distortions of differential treatments to the manufacturing and service sectors. The effort to prepare for a smooth integration with the GST without any hardship to public is a big challenge that needs to be handled at the field as well policy level.

The Department has taken several steps to upgrade the skill of the officers handling Service Tax and equip them with necessary expertise. Training programmes on the issues related to Service Tax are regularly conducted for the Departmental officers. A Manual for scrutiny of Service Tax Returns has been prepared by the CBEC to enable the Departmental officers to carry out the scrutiny of Service Tax returns in a methodical and systematic manner. At the same time, the Govt. has also taken several facilitation measures for the tax payers. To enable them to understand the basic issues related to Service Tax, a booklet on Frequently Asked Questions (FAQ) on Service Tax has been published and the FAQ has also been put up on the Departmental website. A comprehensive guide titled "Taxation of Services: An education guide" is also available on the website which covers the Negative lists and other changes w.e.f 01-07-2012. Open House sessions, Seminars etc. are also organized by the field formations to help the assesses and solve their problems.