Budget 2002 - Wish List

Service

Ficci has recommended that more services be brought under the service tax net. It has suggested a minimum non-taxable limit of Rs 10 lakh for the levy of service tax. Assocham has also suggested that a threshold limit be provided for a person rendering a taxable service. The limit should be based on the tax base and the cost of collection, it said.

Ficci has, however, said that before the imposition of the 5 per cent tax on any service, the growth potential and impact of the tax should be debated. Ficci and PHDCCI have both asked for duty exemption for small entrepreneurs, unorganised sector, household units, civil amenities and social services.

Ficci has said imposition of services tax on broadcasting services will have a serious and retrograde impact on the entertainment and the fast-moving consumer goods (FMCG) industries. It has asked for the withdrawal of tax on tour operators and lease and hire purchase automobile garages.

Since many services are related to production and distribution of goods (specially for exports goods), it adds to the cost of production leading to a cascading effect. Ficci has, therefore, asked for CENVAT credit for service tax.

Assocham has said the tax-payers should be empowered to revise their assessment in case of genuine mistakes. PHDCCI has called for exemption for social services and civil amenities from the service tax.

My budget

Pradman Kaul

Chairman and CEO, Hughes Network Systems

My Budget wish is...

That the government should take steps to boost the consumer

confidence. There should also be steps to encourage investments in the country.

To help my sector grow...

The government should take steps to deregulate the telecom sector by raising the FDI cap from the present 49 per cent.

Did you know?

The 1953-54 Budget, it seems, depended a lot on the horse power to put revenue generation on the fast track. A novel source of customs revenue envisaged in the Budget was -- believe it or not -- horses. For the first time, import duty was imposed on