TIOL-DDT 285 · Wednesday, 18 January 2006 · story 4 of 5

Two rates of Service Tax?

The temptation to kill the goose that lays the golden eggs will most likely be avoided by the Government. The already high 10% rate for Service Tax cannot really be hiked, but the government may go in for a two rate structure. Perhaps a simple 2% Service Tax with no complicated cenvat credit will bring in more revenue and peace all around.