The Union Budget 2017-18 will be intriguing as more than four-fifths of the currency in the country has been rendered invalid. Some changes in taxes around the country will make for an intriguing look into where the country plans on going in the future. Many dramatic service tax changes are expected to take place. These are being designed to impact how service taxes are paid off but there are times when some changes might occur based on projections and results over time.
Going With GST
The service tax may be hiked up to 15 percent. This is to make it fit in with the GST standards that have been posed by the government. This would be consistent with the 15 percent tax used for holdings that are held for less than twelve months and could influence many points for payments.
While other holdings are exempt from taxes if they are held for at least twelve months, short-term ones will not be subject to any exemptions. The desire to get service tax charges to go up in accordance with the rest of the tax structure could be used to help raise more funds.
Purposes For Service tax changes in 2017-18
Service tax changes are being prompted for a variety of purposes:
- Such changes will entail an added source of revenue for the country. This especially comes as investments are being held for less time than usual.
- This is also to simplify how well different types of taxes are applied. By working with different charges, it is often easier for charges to be applied without any confusion.
- This will also help to keep people compliant and likely to follow all taxes. By improving how well the tax code is organized, it should be easier to prevent problems relating to evasion where people try and avoid paying taxes.
Changes From Other Plans
The desire to add to the service tax is different from efforts within the country to cut taxes. The GST was originally pushed back to July 1 but there is a chance that it will be moved back even further. This would depend heavily on how well the GST is figured out and how demographics are reviewed. This is to create a tax system that would be easier for people to pay off and would entail less evasion.
Tax rates for more investments and solutions would be required to make proper revenue projections. The government is aiming to use many simulations to get a clear idea of what would happen for revenue. This is to potentially develop a proper series of taxes including new service tax charges. This could also impact the final rate that will be charged as that rate might end up being higher.
The service tax changes that will take place are interesting to see as the 2017-18 fiscal year comes about. By aiming to offer such changes, the government is hoping to get money and to get people to actually pay off what they owe.
