Finmin divided over CBDT proposal to cut service tax
Service tax, which accounted for only 5.3% of the total indirect taxes in 2003-04, has now grown to be 23.5% of the indirect tax receipts in 2011-12 at Rs 95,000 crore. The ministry expects it to touch Rs 1,24,000 crore this fiscal.
Direct contest over indirect tax
* CBDT proposes to slash 12% levy for final consumer to help boost consumption
* CBDT also feels need to cut service tax rate to 8% to introduce the proposed GST
* In FY13, India may collect R5.6 L cr from direct taxes & Rs.5.1 L cr from indirect taxes