MUMBAI, June 21: Telephone services top the list of service taxpayers in the country with a revenue projection of Rs 692.55 crore in the current Budget.This forms part of net revenue of Rs 2,100 crore the finance ministry expects to earn by way of service tax in the current year. In the last Budget, the ministry had envisaged service tax revenue of Rs 2,150 crore which was revised downward to Rs 1,500 crore. The service tax projection from telephone service in the last Budget was to the tune Rs 615 crore which was revised by about 20 per cent to Rs 625.42 crore.Insurance sector will provide the next largest chunk of revenue in the current year with a projection of Rs 489.86 crore. This is against the previous budgetary projection of Rs 435 crore which was latter revised to about 18 per cent and hiked to Rs 442.38 crore.
The finance minister has brought in 11 more services under the purview of service tax which includes architects, interior decorators, management consultants, practising charteredaccountants, cost accountants, company secretaries, real estate agents and consultants, credit rating agencies, private security and detective agencies, market research agencies and underwriting agencies.
Besides telephones and insurance, the ministry expects to net Rs 228.65 crore from four other sectors under the service tax. These are brokerage, advertising, courier and radio paging.
Courier industry is likely to pay Rs 78.16 crore against last year's projection of Rs 70 crore which was revised to Rs 71.93 crore. Similarly, service tax on brokerage will be to the tune of Rs 73.19 crore against the previous projection of Rs 65 crore. This was revised to Rs 66.10 crore.
Advertising sector will be providing Rs 69.82 crore this year against last year's provision of Rs 62 crore which was hiked to Rs 63.05 crore in the revised Budget.
Radio paging service's growth can be witnessed from the amount of service tax it is expected to pay this year. The current projection is Rs 7.48 crore against last year'sprojection of Rs 3 crore. In the revised estimate, the ministry had virtually doubled the earning projection and pegged it at Rs 6.75 crore.
Besides these major service sectors, other sectors will chip in Rs 688.34 crore towards service tax.
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