CBEC wants to collect Rs 1.24 lakh cr via service tax

With the new service tax regime coming into effect from July 1, the government expects to collect a revenue of Rs 1.24 lakh crore this fiscal, Central Board of Excise and Customs (CBEC) said.

Services sector now accounts for over 60 per cent of GDP. During the three months to June, the service tax collection grew 14.6 per cent over the same period last year.

Under the new tax regime, all services, except 38 activities put on the negative list, will come under the tax net at the increased rate of 12 per cent, as announced in the budget. So far, service tax was being levied on 119 services activities based on a positive list.

CBEC Chairman S K Goel told reporters on the sidelines of a seminar organised by Assocham here that the introduction of the new scheme brings with it the issue of shortage of skilled manpower.