Indian gas pipelines may come under service tax net
Tue, 15 February 2005
INDIAN energy companies which provide pipeline services could be potential candidates to be brought under the service tax net. After road transport, the government is weighing the pros and cons of imposing service tax on other modes of transport: ths could include pipeline transport and rail transport.
The existing 10% service tax rate may not be altered, however.
The government has signalled bringing more services under the tax net in its mid-year review. However, it may opt to maintain status-quo on the 10% rate, considering the new rate came into force only in September, 2004 both on existing and new services.
The only exception was the service tax on goods transport agencies, which came into force on 1 January.