Ficci meet on service taxes on Oct 11

The southern regional chapter of Federation of Indian Chambers of Commerce and Industry of India (Ficci) is organising a seminar on 'The impact of eight new service taxes on the corporate sector, service tax credit rules and procedural aspects' here on October 11. The parliament has introduced eight new service taxes which are expected to have an impact on all corporate houses.

The seminar will also cover methodology of classification of service tax and scope of the specific services in the context of various clarificatory circulars and notifications issued.

Service tax is currently being administered by the central excise department. It has major impact for companies which deal in business auxiliary services, franchise services, technical testing, commissioning and installation services, maintenance and repair services, management consulting and consulting engineers.

By 2005, the central government is targeting to collect Rs10,000 crore by way of service tax against the present collection of about Rs 4,500 crore. The government expects to increase the ambit of taxes to 100 services by 2005.

Currently it is levied on 58 services at a rate of eight per cent, which is also expected to increase in stages to be on par with the central excise duty.