Thursday, June 19, 2014

Service Tax is needed in India

The second economy as told my many Indian economists, were not paying incomes taxes but were using Government provided services and subsidies - Petrol (not now - std. rates) , Diesel (still -5.80 loss for govt. / litre) approximately I enjoyed about 500 litres in subsidized price 500 x 6 = 3000, LPG Cooking Gas ( 12 * 800 = 9600 / year / family ). Now what I pay to Hotel food 2000 pm x 12.36% = Rs 247.2 is given as ST. The insurance premium (even that is written off for IT) has a ST component that nullifies effect. On average basis Indians earning above 5 lakhs PA pay 17% in taxes itseems. Reading a new book that endorses Service Tax released by Modi - Getting India Back on Track -
Getting India Back on Track: An Action Agenda for Reform - Buy Getting India Bac...k on Track: An Action Agenda for Reform by BIBEK DEBROY, ASHLEY J. TELLIS, REECE TREVOR only for Rs. 365.0 at Only Genuine

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