Ahead of GST rollout, Govt collecting detailed info on Services Sector Establishments

New Delhi, Jan 9 (KNN) Keeping in view the major contribution of Services Sector in GDP, the Government is planning to collect detailed information on Services Sector Establishments and related activities ahead of GST rollout.

The Ministry of Statistics & Programme Implementation, Government of India, is planning to collect detailed information on Services Sector Establishments (including Construction, Trade, Hotel & Restaurants, Transport, Real Estate, Business Services etc.) and related activities under the provisions of the Collection of Statistics Act, 2008 & Rules framed there-under in 2011.

The Ministry through a notification has sought for information for the financial year 2015-16 of the enterprises and establishments.

It has said that the information shall be furnished within one month from the date of receipt of the notification.

Services sector contributes a major part of the whole Gross Domestic Product (GDP) as well as in taxes also.

Service sector does not only dominate the GDP contribution but also contributed in foreign investment, export large scale employment etc.

India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.

In current tax regime, service tax is applicable at the rate of 15% on Services rendered which includes 0.5% for Swatch Bharat Cess and 0.5% for Krishi Kalyan Cess but it is expected that under GST regime services will be charged by higher rate of tax ranging between 18% to 26% which will make the services and works contracts costlier.