Demanding cut in taxes and paper work for the entertainment industry, Electonics and Computer Software Export Promotion Council on Monday suggested a single point service tax levy for the industry and lowering of service tax rates.
"There are several stages of levying service taxes in the case of production of advertisement, films, TV commercials. It will be convenient and prudent to make a single point system, which will reduce the paper work and the cumbersome procedure of collection of service taxes at multiple points," ESC said in a pre-Budget memorandum to the Government.
The industry body suggested three per cent reduction in service tax to five per cent.
"The approach of the Government should be to reduce the tax rate and to bring more services into the service tax regime. It is a common knowledge that lower the rate of tax, better will be the compliance," it said.
The ESC also demanded abolition of sales tax on transfer of Duty Entitlement Passbook Scheme (DEPB) licences and suggested that the Government should direct states not to impose tax on transfer of such licences.
The ESC recommended sales tax exemption on domestic sales by SEZ on purchase of goods against advance licence, purchase of goods by EOUs and purchase of capital goods under EPCG scheme.
{{/usCountry}}The ESC recommended sales tax exemption on domestic sales by SEZ on purchase of goods against advance licence, purchase of goods by EOUs and purchase of capital goods under EPCG scheme.
{{/usCountry}}The council also sought tax exemption on services to EOUs like insurance of property, services of chartered and cost accountants, security agencies, consultants and telecom services including ISP services.