Contours of Service Tax Colection in Developed Countries”An Analysis

Abstract

Despite a charming start after independence, Indian taxation system, being important revenue generation sector, witnessed a comparatively slow and fragile recovery from Central Excise, Customs etc. The year 1994 started a promising new era in the global taxation system and it is also the turning point of economic development of all countries through introduction of service tax. This compares to a worldwide taxation system that remained gradual during the earlier days. After that the revenue comes from service sector plays a vital role. Today in India service tax contributes more than 50percent of Indian GDP. As there is no separate act for maintain service tax it follows the guidelines of Central Excise Act. The CBEC (Central Board of Excise & Customs) act as an important nodal agency for the development and amendments regarding service tax. This study examines the extent and impact of policy decisions of regulatory authority on the growth of the service industry. Te financial and quantitive data have been collected from World Bank data base for the year 1980 to 2013. Primary statistical analysis has been made. How service tax has a significant impact on the development of different country is discussed here.