ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Service TaxSubscribe to Service Tax

Dynamics of Inflation in Services

Price developments in services need to be analysed on the basis of CPI to study their contribution to inflation in relation to that of goods. At present, services sectors account for almost 50 per cent of the aggregate GDP. Higher price increases, rising productivity and increased tradability could create a â??virtuous circleâ?? associated with a higher share of services in GDP. However, reforms and privatisation programmes, if not associated with increased efficiency, may also contribute to a rise in charges and services prices.

Central Value Added Tax

Excise taxes were, till 1998, the most disappointing feature of the entire tax reform process. But the substantial progress made in the last two years must now be brought to fruition by completing the move to a comprehensive central producer VAT (CENVAT). A simultaneous reform of the central service tax system would lay the ground for its integration into the CENVAT, perhaps a year or two later.
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