WB Service Tax Collection Declines

Kolkata: The West Bengal service tax department collected Rs 1,500 crore as tax in the fiscal 2006-07, against the aim of Rs 1,700 crore. It targets to collect Rs 2,095 crore in 2007-08. The department will issue show cause notices to all the defaulters soon. Apart from construction services, other sector where the non-compliance was high was security agency services, clearing and forwarding and banking and financial services. In Kolkata and adjoining areas the level of non-compliance was still high compared with other metros. Last year, Mumbai contributed Rs 12,500 crore the highest contribution by any metro to the Rs 40,000 crore Central service tax kitty. However, a number of new services included in the Finance Act, 2007 like telecommunication, mining, service component in work contract, content service, asset management and design services were expected to increase this year''s collection. Also, this year consequent to the increase in threshold limit of exemption for small service providers from Rs 4 lakh to Rs 8 lakh, the limit for obtaining service tax registration had been raised from Rs 3 lakh to Rs 7 lakh. Nearly 10,000 service providers having works contract had been identified in West Bengal and had been sent mailers for registration and payment of service tax.