Telecom tops service tax list, govt eyes more sectors

The telecom industry topped the list in service tax collected by paying Rs 1,508.68 crore (Rs 15.09) in FY03. The government raised Rs 4,123 crore (Rs 41.23 billion) in the previous fiscal from service tax.

Telecom was followed by insurance, which contributed Rs 658.46 crore (Rs 6.58 billion) while port services payed Rs 204.57 crore (Rs 2.05 billion) last fiscal, according to Central Board of Excise and Customs member Mahendra Prasad.

"In 1994-95, the total service tax collection was Rs 410 crore (Rs 4.1 billion), which has touched Rs 4,123 crore (Rs 41.23 billion) in 2002-03. Many new services may be brought under the tax net in future," Prasad said.

He said the total number of assessees during 1994-95 was 3,943, which has increased to 2,24,452 last fiscal.

Currently, 58 services come under the tax net with the finance minister adding seven new services in the last budget, which has set a target of Rs 8,000 crore (Rs 80 billion) for FY04.