12% service tax looting



So i see my bill that has been generated on 23 April 2012.The service tax is 12%.Shouldn't the service tax be 10.3 % till march 31 and then 12%?.
Also did you know that manmohan singhs service tax which was introduced in 1994 was unconstitutional?.It only became law in 2003 by a constitutional amendment.So the govt should pay back the tax from 1994-2003


Founder, Hayai Broadband
Pssh. Get over it. Service tax in this country is low compared to most - and indeed taxes in India aren't that high and still nobody pays. Service Tax is not unconstitutional unless the constitution specifically says something about it not being levied by such and such for any reason now or in the future - in the same way US constitution talks about ceasing all payments of tax to the British and in declaring independence establishes the right to tax it's own citizens & print it's own money.The Indian constitution similarly specifies that taxes on goods and services may be levied at a federal level *and* at a state level. An Act of Parliament makes something law, and what was passed in 1994 caused companies to be legally obliged to pay service tax, and as such this is passed on to the consumer the way it is everywhere else. Probably the reason the constitution was amended was because they were sick of being challenged in court (despite the excise board winning) by companies that didn't want to pay service tax, and the article you've referred to itself specifies the problem being with which authority should levy the tax and not the tax itself. Personally, it's much easier to deal with a nationwide tax than individual state taxes, so I'm glad for that at least: state taxes make things a mess (just look at the US).


well the government is increasing it progressively. :) i am sure it would end up reaching the levels of 20% in a matter of years.

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