Service Tax Mop Up Likely To Top Rs 38,000 Cr This Fiscal

Service tax mop up in 2007-08 is expected to exceed the target of Rs 50,200 crore, according to officials of the tax administration. The revised target of service tax collections for the year that is coming to a close is likely to be exceeded by around Rs 200 crore. Because of the buoyancy in tax collections, the original target for 2006-07 of Rs 34,500 crore was revised to Rs 38,160 crore a few months ago. Now, even this is likely to be exceeded, according to Mr P.K. Jain, Commissioner of Service Tax. The target for service tax collections for the year 2007-08 has been fixed at Rs 50,200 crore, but the tax departments see this as an easy target. They said that service tax on works contracts, rent on commercial property and cab services would add to the revenues.