Great victory for IMA
TODAY,after storming grilling in parliament by all party members,finance minister decided to roll back 5% service tax on health care services. it has been possible only with lot of fight and relentless sensitization of political and media leaders by the IMA. My congrats to all IMA leaders,especially dr.n.appa rao,dr.samaram,dr.vinay aggarwal and dr.rai who had contributed their might & expertise for this greater common cause. sincere thanks to one and all.
"The scenario i had understood about the service tax fiasco".
TODAY,after storming grilling in parliament by all party members,finance minister decided to roll back 5% service tax on health care services. it has been possible only with lot of fight and relentless sensitization of political and media leaders by the IMA. My congrats to all IMA leaders,especially dr.n.appa rao,dr.samaram,dr.vinay aggarwal and dr.rai who had contributed their might & expertise for this greater common cause. sincere thanks to one and all.
"The scenario i had understood about the service tax fiasco".
What has been proposed in budget-2011 regarding service tax on health care ?
In order to complete the tax credit chain and pave the way for GST, Finance minister pranab Mukherjee had proposed to extend service tax on tests and medical services in centrally airconditioned hospitals with 25 beds or more.
What is the reaction of IMA?
Strongly opposed and demand roll back of service tax and in the process sensitized and motivated all political parties,social network and media by conducting –dharnas,submission of memorandums,rallies,etc… .
What is the predicament of govt.?
Hon. Finance minister pranab Mukherjee trying to sought the support of all parties for the Direct Taxes Code (DTC ) Bill, (constitution amendment Bill for GST), and other financial sector reforms.
What happened in lok sabha on 22-3-11 ?
Faced with mounting criticism and several Assembly elections, Finance Minister Pranab Mukherjee today took a step back on tax proposals announced in the Budget, withdrawing the proposed 5 per cent service tax on hospitals and diagnostic tests.
He also diluted the 10 per cent excise duty on readymade garments, and put up for review proposals regarding dividend distribution tax and a cut in Customs duty for completely knocked-down automobile kits.
Sri pranab in his own words, - “I have decided to exempt the new levy in its entirety both in respect of services provided by hospitals, as well as by way of diagnostic tests until GST (Goods and Services Tax — the Bill for which was introduced in Parliament today) comes into force,” Mukherjee said while moving the Finance Bill, 2011 in the Lok Sabha.
What is the end result?
govt had given a 50 per cent abatement, so the tax rate worked out to be 5 per cent.
The rollback of the unpopular tax, christened misery tax by the industry and public, was greeted with loud thumping of cheers..
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