|Tax In India
Indirect Tax Reforms in India An implication of Service Tax on various services
*Prof. (Dr. ACS, CWA) Pradeep Kumar Aggarwal, **Dr. Sunil Kumar, *** Dr. M.K Gupta,
Tax is the contribution made by the citizen for the welfare of the state. The taxation is not only a means to collect revenue for public expenditure, but it is also an important instrument of economic planning. In a good tax system, the canons of equity, certainty, convenience, economy, productivity, elasticity and diversity should be followed. There have been major changes in tax systems in several countries over
the last two decades for a variety of reasons.The tax system should not be discriminatory in any respect between individuals and groups. A good tax system should also conform to the principle of justice. The taxes are broadly classified as direct and indirect. A direct tax is one, which the Government demands from those very people who are expected to bear its burden eventually. Whereas, indirect tax is one which is demanded from the people who can shift its burden to others. Income tax is a direct tax while sales tax or service tax is an indirect tax. In India, the tax structure has been evolved on the basis of the ability to pay principle and the tax structure of the country is progressive. The present paper attempts to examine the implications of taxation on various services covered under the ambit of service tax.