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Noting that the services sector accounts for about 52 per cent of the GDP, the Finance Minister expressed the necessity to cast the net wide and to include some additional services in the service tax net. These includes pipeline transport of goods; site formation; demolition and like services; membership fees of clubs and associations; packaging and specialized mailing services; survey and map making services; dredging services in rivers and harbours; cleaning services for commercial buildings and similar premises; and construction of planned residential complexes, with more than 12 dwelling units, developed by builders etc.
However, as a relief to the small service providers, the Minister proposed to exempt from service tax those service providers whose gross turnover does not exceed Rs.4 lakh per year. About 80 per cent of the present service tax payers would gain from the exemption, he said.
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