Chennai:
Now your joy rides to amusement park will turn costlier as it has been
brought under the service tax net.
During a session on Union Budget Impact Analysis 2015 organised by
KPMG here on Monday night, S Srinath, senior advisor, Indirect Tax,
KPMG said that service tax has been widened to include water park,
amusement park besides entertainment and sport-related events.
This could make parents rethink as the service tax has also been hiked
by another two per cent besides levying an additional tax of two per
cent as Swacch Bharat Cess.
While the measure is to make GST rate of service tax to 16 per cent,
but Srinath feels that it should be done not at a stretch but over a
period of time.
Interestingly, service tax will also be imposed on music concerts as
well as non-recognised sporting events. This will also have an impact
on mobile bills, restaurant bills, salon or spa treatments and
coaching class fees.
Srinath also says that levying service tax on entertainment, which
already has a state tax, could result in conflict of interest between
Centre and state.
He said that the the focus of the budget is to move away from multiple
tax to unified tax. He said the government is also trying to reduce
litigation by offering discount to tax payers.
Pradeep Narayanan, partner, BSR and company, said that government’s
plan to bring down Corporate tax to 25 per cent in four years is a
bold move by the government. Currently, indian corporates are paying
33.91 per cent of tax. He the move by the government is akin to the
international model where many countries have reduced the corporate
tax to 25 per cent.
But then he also added a two per cent surcharge on super rich would
further add the tax burden. He said that world over the alignment of
taxable income is to economic activities.
R Venkatesan, partner, BSR and Company, hailed the budget and said it
is an attempt to reboot India.
Now your joy rides to amusement park will turn costlier as it has been
brought under the service tax net.
During a session on Union Budget Impact Analysis 2015 organised by
KPMG here on Monday night, S Srinath, senior advisor, Indirect Tax,
KPMG said that service tax has been widened to include water park,
amusement park besides entertainment and sport-related events.
This could make parents rethink as the service tax has also been hiked
by another two per cent besides levying an additional tax of two per
cent as Swacch Bharat Cess.
While the measure is to make GST rate of service tax to 16 per cent,
but Srinath feels that it should be done not at a stretch but over a
period of time.
Interestingly, service tax will also be imposed on music concerts as
well as non-recognised sporting events. This will also have an impact
on mobile bills, restaurant bills, salon or spa treatments and
coaching class fees.
Srinath also says that levying service tax on entertainment, which
already has a state tax, could result in conflict of interest between
Centre and state.
He said that the the focus of the budget is to move away from multiple
tax to unified tax. He said the government is also trying to reduce
litigation by offering discount to tax payers.
Pradeep Narayanan, partner, BSR and company, said that government’s
plan to bring down Corporate tax to 25 per cent in four years is a
bold move by the government. Currently, indian corporates are paying
33.91 per cent of tax. He the move by the government is akin to the
international model where many countries have reduced the corporate
tax to 25 per cent.
But then he also added a two per cent surcharge on super rich would
further add the tax burden. He said that world over the alignment of
taxable income is to economic activities.
R Venkatesan, partner, BSR and Company, hailed the budget and said it
is an attempt to reboot India.
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