Swachh Bharat may add 1% extra service tax to 5-star bills
New Delhi:
TIMES NEWS NETWORK
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The government has identified five “high-end services“, bills in fourand five-star hotels for one, which will attract additional service tax to fund PM Modi's Swachh Bharat campaign, leaving a slightly bigger dent in your pocket.Sources, however, indicated that against an “enabling provision“ of levying up to 2% cess over the 14% service tax, the government is expected to notify an additional 1% levy. The Centre aims to mop up around Rs 14,000 crore annually for the Swachh Bharat Kosh, which includes the 1% cess on the five services, apart from a levy of Rs 200 a tonne on coal.Details on the other four services were not available.
The move to impose service tax is expected to fetch the government around Rs 2,000 crore a year, while the coal levy is expected to generate around Rs 6,000 crore. Further, public sector companies are being asked to chip in with a part of their corporate social responsibility (CSR) contribution to the fund. On Monday, TOI was the first to report about state-run banks being asked to contribute for the campaign that was flagged off by Modi on October 2.
While increasing the service tax from 12% to 14%, the government had proposed the cess, but had clarified that it would be imposed only on select items and would be applicable from the day it was notified. The twin moves have come in for criticism as it is seen to be impacting household budgets but the government has argued that the move is a transition towards the rollout of Goods and Services Tax. The Centre is targeting to launch the ambitious tax reform from April next ye
The move to impose service tax is expected to fetch the government around Rs 2,000 crore a year, while the coal levy is expected to generate around Rs 6,000 crore. Further, public sector companies are being asked to chip in with a part of their corporate social responsibility (CSR) contribution to the fund. On Monday, TOI was the first to report about state-run banks being asked to contribute for the campaign that was flagged off by Modi on October 2.
While increasing the service tax from 12% to 14%, the government had proposed the cess, but had clarified that it would be imposed only on select items and would be applicable from the day it was notified. The twin moves have come in for criticism as it is seen to be impacting household budgets but the government has argued that the move is a transition towards the rollout of Goods and Services Tax. The Centre is targeting to launch the ambitious tax reform from April next ye
