Seminar on Service Tax – Past, Present & Future
18th May 2012
The Madras Chamber of Commerce & Industry (MCCI), as part of the outreach programmes of the Chamber has conducted a Seminar on Service Tax – Past, Present and Future at Sembarambakkam on 18th May. Mr Mr.N.S.Balachandra Datta, Senior General Manager, Hyundai Motor India Ltd. presented some of the pain points of the Service Tax. He pointed out that issues like point of taxation, rates, input credits and litigation arising out of the non-clarity are some of the difficulties faced by the industries.
In his inaugural address, Mr.K.Srivatsava IRS.,Chief Commissioner for Central Excise & Service Tax, Chennai appreciated the initiative of the Chamber in moving out of Chennai and conducing such useful programmes in places like Sembarambakkam, Sriperumbudur where industries are located. He said that upto 1994, there was no service tax though services contribute more than 56% of the country’s GDP. He said that service tax relatively is a recent one and hence undergoing a number of improvements over the years. The recent budget will further take it towards the path of improvement and would address some of the issues faced by the industries as pointed out here like reduction, litigation, clarity with regard to the definitions etc. He highlighted the e-governance initiatives of the Department which should encourage people to resort to more of e-filing of returns. He also mentioned that as of now there could be some minor difficulties and errors as in Chennai alone, nearly 77 to 78% of the e-returns are not directly accepted by the system for many reasons. However, he said that these kind of programmes could educate people in improving the system. In concluding, he said that with all these, year-on-year developments in the service tax will enable us to move towards Goods and Service Tax Act.
He also said that the Board has come out with guidance paper which is in the public domain which could be viewed by all the users and he welcomed more suggestions from the users through Madras Chamber. He assured all support from the Government side.