Service Tax

FOCUS Graphiti TAXI WHO'S GRABBING YOUR PIZZA SLICE? WHAT'S CUTTING YOUR TALK TIME? WHO'S INCREASING YOUR CAB BILL? IT IS SERVICE TAX. YOU DON'T KNOW IT, BUT YOU ARE PAYING THIS TAX SEVERAL TIMES - EVERY DAY. SLOWLY AND STEALTHILY, IT HAS BECOME AN UNEXPECTED BONANZA FOR THE GOVERNMENT FROM THREE TO INFINITY TOP 10 CITIES THAT PAY SERVICE TAX 12% MORE THAN Tax rate in 1994 Tax rate in 2012 1 MUMBAI 6 HYDERABAD Number of services covered in 1994 100% HIKE 7 PUNE 2 DELHI 5% 3 CHENNAI 8 AHMEDABAD TELEPHONE 4 BANGALORE 9 JAIPUR 10 RAJKOT 5 KOLKATA City rankings are 2009/10 (latest available) YOUR PAIN = GOVERNMENT'S GAIN STOCKBROKING 1,24,000* CR 0.45% TOP 10 SERVICES BY TAX REVENUE Service tax as % INSURANCE of government income in 1994/95 Figures in ? crore TELECOMMUNICATION Total revenue from service tax 4,777.25 SERVICES 12% | 4,087.07 BANKING & OTHERS Number of services covered in 2012 Service tax as % 2) INFINITE* BUSINESS AUXILIARY | 3,857.40 of government income in 2011/12 SERVICES 7407 CR *Budget estimate (*From last year every service except a few mentioned in the negative list is taxed) | 3,501.80 INSURANCE 1994 2012 BUSINESS SUPPORT | 3,148 | 3,089.94 SERVICES IT IS A GOLDEN GOOS... .. THAT CREATES REVENUE AT THE FASTEST PACE RENTING OF IMMOVABLE PROPERTY AND FROM A WIDER POOL OF TAXPAYERS THAN INCOME TAX Service tax | 2,933.54 | 2,842.55 WORKS CONTRACTS Growth in service tax revenue in 10 years 1,471% 14.4 caO Service tax collected MANPOWER RECRUITMENT CR Service tax collected 340 CR AGENCIES every hour in 2012 Income tax Growth in income tax MAINTENANCE & | 2,603.27 revenue in 10 years 346% REPAIRS every day in 2012 TRANSPORT OF GOODS BY ROAD | 2,449.33 Source: www.servicetax.gov.in Data for the period: April 2011 to January 2012 Graphic by Santosh Kushwaha, Research by Kamya Jaiswal