Govt to set up committee on service tax

The government will soon constitute a one-man committee of  T R Rastogi, former joint secretary in the finance ministry, to bring out a comprehensive circular on service tax.

Once constituted, the committee would compile all circulars issued on service tax since 1994 into a single circular, R Sekar, joint secretary (TRU) to the finance minister, said today.

A lot of circulars have been issued since the introduction of service tax in 1994. As a result of which the law has undergone many changes, Sekar said at a seminar on service tax organised by PHDCCI today.

Therefore, there is need to achieve clarity on it for the benefit of service taxpayer. However, the government is yet to decide the terms of reference and the time frame within which the committee will submit its report, Sekar said.

Talking about goods and service tax coming into effect from 2010, Sekar said, continous dialogue is being held with finance ministers of various states in order to reach a consensus.

In the present scheme of things, taxes are being levied both at union and provincial level, Sekar added.