Booming Indirect Tax Collections - But Why Service Tax Lagging Behind

By Vijay Kumar

THE CBEC and all Chief Commissioners are smiling and are not unduly worried and Trade is not being harassed to pay more – after all Revenue is booming.

Revenue During April – August

Now, is there something wrong with Service Tax collections. If imports have increased and production has increased, can services lag behind and that too by less than half of Central Excise? This is a baffling question even for the Finance Minister and could be a possible point for discussion when the FM is meeting the CBEC top brass later this week.