Introduction of goods and services tax (GST) will help settle the issue of double taxation on some transactions like in case of information technology software, a top Finance Ministry official said at an ASSOCHAM event held in New Delhi today.
“On the issue of double taxation on some transactions like software, it is true that there are disputes on the issue pending in various courts and forums, but I sincerely hope that will settle only after introduction of GST,” said Mr Sanjay Gupta, Commissioner of Service Tax, Delhi – IV while inaugurating an ASSOCHAM national seminar on Service Tax & CENVAT Credit.
“It is because most of the times there are two authorities i.e. Centre and states, though both are independent authorities and are entitled to take their view, even courts have given contradictory judgements, therefore I hope only GST will solve this problem,” said Mr Gupta.
He also said that government had already moved miles ahead on the roadmap to GST as various committees have been formed by CBEC and administrative setup has also been augmented to face the upcoming challenges.
“The present service tax laws are aligned with most of the international GST laws of taxation of services, thus by understanding correctly, the present law will not help now but will also help as and when the GST is introduced,” added Mr Gupta.
He further said that acceptance of surrender of service tax registration is an area which needs to be improved. “We are working upon it and very soon we will come out with simplified procedure.”
Mr Gupta informed that large pendency of adjudication is slowly being solved after cadre restructuring and allocation of cases to other commissioners of central excise.
He also informed that Gurgaon commissionareate headed by him, is the single largest revenue collecting commissionareate in the country as last year it’s total collection was about Rs 19,300 crore.
“After number of years, the service tax zone – Delhi could exceed the revenue target in FY15-16 without resorting to usual year-end practice of CENVAT management,” he added.