Service Tax for more items from 1st July 2012

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For the common man, already burdened by rising prices, changes in the service tax regime will bring in more gloom. The government is rolling out a new service tax regime from today, which is based on negative list concept.
The Finance Ministry has kept 38 services under the negative list which will be exempt from taxation; all the other services will attract 12 per cent service tax. The government had earlier decided to implement the negative list from July 1.
The government has widened the definition of ‘Services’ to bring in more activities under the tax net. Till now, 119 services that come under ‘positive list’ are subject to the levy. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST).
As per the negative list, services like metered taxis, autorickshaws, betting, gambling, lottery, entry to amusement parks, transport of goods or passengers and electricity transmission or distribution by discoms will not come under the service tax net.
Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased.
Coaching classes and training institutions will come under the net, though the tax will not be levied on school, university education and approved vocational courses.
However, confusion prevails with regard to the imposition of service tax on rail freight and passenger fares.
Railway Minister Mukul Roy has said the Railways will not introduce service tax on freight and fare from July 1 and has written to Prime Minister Manmohan Singh, who is now looking after the Finance portfolio, in this regard.
Besides, services provided to the government, local authorities or a government authority for the repair and maintenance of an aircraft would also come in the negative list.
Also, services provided by advocates to other advocates and business entities up to a turnover of Rs. 10 lakh in the preceding financial year is exempt from service tax.
Services provided by way of public convenience such as provision of facilities of bathroom, washroom, urinals or toilets would be included in the negative list.
The other services which would be exempted from tax include auxiliary educational services and renting of immovable property by educational institutions in respect of education exempt from service tax.

Why unnecessary delay to hold the National Council?

The next National Council was to be held by 24th June 2012 as decided by the last National council meeting. But despite the continued demand by the unions, the date for the next meeting has not been fixed. The delay is unwarranted and inexcusable.

The BSNL management should immediately fix the date and hold the same at the earliest.

Defeat the govt. move to increase FDI in Insurance

It is reported that the government is once again making efforts to increase the FDI in the insurance sector on the demands of the MNCs and Indian big business. At present the FDI in insurance is 26%. Though the government wanted to increase it to 49%, the Parliamentary Standing Committee has recommended that there is no need for the same.  For effecting the increase, the government had moved Insurance Laws (Amendment) Bill 2008, but could not pass it so far due to strong opposition including from the trade unions.

It is necessary that another strong movement is to be organised to defeat the nefarious game of the government to appease the MNCs and big business which is against the best ineterests of the nation.

China pays tributes to Dr and Mrs. Dwarakanath Kotnis.

China today paid rich tributes to wife of legendary physician Dwarkanath Kotnis, Guo Qinglan, saying she spent her life promoting Sino-India ties.     96-year-old Guo, a Chinese woman who married Kotnis in November 1941, died yesterday in Dalian, a coastal city in northeast China’s Liaoning province.     Expressing condolences, Chinese Foreign Ministry spokesman, Hong Lei, told media briefing here that Guo spent her whole life promoting exchanges and cooperation between China and India.     Dr. Kotnis, came to China in 1938 along with an Indian medical team to render medical assistance when China fought against the Japanese invasion.     He joined the Communist Party of China (CPC) in 1942 and died the same year, state-run Xinhua news agency reported.     Kotnis sacrificed his youth and life for China’s national salvation, Hong said, adding “we will always remember their (Guo and Kotnis’s) important contributions”.     His medical assistance during the difficult days of Chinese revolution were deeply praised by Chinese leader Mao Zedong.     Dr. Kotnis, who hailed from Sholapur in Maharashtra died of epilepsy in China at the age of 32 years. His statues were also unveiled in some of the Chinese cities in recognition to his services.     Guo, herself a nurse, hailing from China’s Shanxi province married Dr. Kotnis in 1941 a year before his death in China.     She has been an honoured guest at many high-level diplomatic functions between China and India. She was a regular invitee at the Indian Embassy functions in China.     Though she got married again later, she retained her name as Guo Qinglan Kotnis.     India and China have instituted a joint medical mission in his honour. Recently eight Indian doctors visited China under special bilateral programme to study rural medicare here (Courtsey: Ganashakti)

The great sacrifice and service by Dr. Kotnis and his wife will be remembered ever, which had strengthened the Indo-China relations also.

Air India Strike – Govt. should intervene

The strike by the Air India Pilots is continuing for the last 56 days. There is no end in sight to the strike. About 100 pilots have been dismissed, the Air India is losing about Rs.22 crores a day, passengers are suffering and the PSU is going down. The striking pilots are on hunger strike for the last eight days and two of them have already been hospitalised. The Government, the Aviation Minister and the Air india Management are taking the stand that whatever happens, they are not prepared to talk with the striking pilots, unless they join duty. They also say that the dismissed pilots case will be settled case by case meaning that all will not be taken back, especially 11 of the union committee members. Pilots are prepared to join duty if everybody is taken back and the union is recognised again.

The people of the country want the strike to end and the Air India starts its operations as earlier. It is the duty of the government to find a solution to the matter.It is not a question of  right and wrong, but a mediation through which the issue is to be resolved. The issue has come in connection with the merger of Air India and Indian Airlines and the management and the government have to sort out the matter. The government should act and resolve the matter urgently by discussing with the pilots association without sticking to its adamant stand.

Comrade Sahdev Biswal retires from service

Comrade Sahdev Biswal, Vice-President of BSNLEU, has retired from service today, 30th June 2012. Com. Biswal is a senior leader of the BSNLEU and has functioned as the President of the Odisha Circle Union and Vice-President of All India Union for a long period.

Com. Biswal was the  President of the All India Civil Wing Employees Association, which merged with the BSNL Employees Union at the time of its formation in 2001. In organising the BSNL Casual and Contract Workers Federation in Odisha he has contributed much.

Com.Biswal was given a warm send off by the Odisha Circle Union on 29th June.

My Best wishes to Com. Sahdev Biswal at the time of retirement from service. I wish him to continue his services to the union and the people at large in future.