Budget 2011-12: Service Tax net may be widened!

Budget 2011-12 may see Union Financial Minister Mr. Pranab Mukherjee widening Service Tax net to more industries. This could be a step to make up for missing the deadline to implement Goods & Services Tax (GST). It is known that Union Government failed to get buy in of all the States to introduce a common GST which would have standardized Taxing process in India.

According to the information available, it is learnt that Union Finance Minister Pranab Mukherjee is looking to bring key sectors like health and education under Service Tax net. This move is likely to rake in huge moolah for the Government as these two sectors are on a rise and has seen huge private investments coming into the sector.

It is known that excise duty will be integrated with service tax starting next fiscal – financial year 2011-12. This integration process will lead to unison of administration for both these tax departments – which will lead to a ease in taxing process. It is learnt that the Central Board of Excise and Customs (CBEC) is also considering lowering of central excise threshold from the current levels of Rs 1.5 crore to just Rs 10 lakhs.

If we look at the current status, there are around 117 services in India which are taxed at 10%. Among these eight new sectors / services were included in Budget 2010-11. But unlike earlier inclusion of education and healthcare may also face some resistance from opposition, especially the Left Parties claiming that these new inclusions would lead to costlier healthcare and education in India.

Let’s hope that the new processes will lead to less cumbersome taxing procedures in India. With an economist like Manmohan Singh being the Prime Minister of India and a senior statesman like Pranab Mukherjee handling the finance portfolio – a lot is expected from this duo. Indian industry for a long time has been hoping for simplified or unified tax procedures to introduced in the country.

Budget 2011-12: Pre-Budget consultations with India Inc

Finance minister Pranab Mukherjee said that he would begin consultations with the industry from the first week of the next year for the budget to be presented on February 28.

“Let us wait for the D day. Let us wait for February 28,” Mukherjee said at the Business Leader Awards of private news channel CNBC TV18 when asked if the government would reduce taxes.

The minister said that he would start pre-budget consultation with stakeholders, including India Inc, in the first week of January and that would continue for two weeks.

Budget of Hope

Dear friends,

Like every year, Budget is round the corner again. Union Government, India Inc, CII, ASSOCHAM, NASCOM, Industrialists, Entrepreneurs, Corporate India, Media, Common man .... you put them in any category .... every one of these will be excited and will be looking forward to Union Budget 2011-12.

This year has seen two of the most powerful leaders of the World; Barack Obama, President of the United States and Wen Jiabao, Premier of Peoples Republic of China visit India. And these visits are significant not just from political perspective but also from business stand point - many business cooperation deals were signed during these visits.

So, now its time for Corporate India to prepare their wish list for Pranab dada!

So, friends see what Corporate India will ask for this time around!