Question : SERVICE TAX

(a) whether the Service Tax Expert Group has been constituted to suggest measures to make existing procedure more effective and augment voluntary compliance of service tax;

(b) if so, the details thereof;

(c) the time by which the panel is expected to give its final report;

(d) whether the terms of reference include making recommendations on extending tax base in the area of service tax;

(e) if so, whether any interim report is submitted by the expert group; and

(f) if not, by when, the interim report will be submitted?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)

(a) & (b): Yes Sir, the Government have constituted an Expert Group on Service Tax under the chairmanship of Dr. M. Govinda Rao, Director, Institute of Social & Economic Change, Bangalore, with a view to examine various aspects connected with the field of taxing the services and to make recommendations in this regard.

(c) The Expert Group has been asked to submit the final report to the Government by the 31st December, 2000.

(d) Yes sir. The terms of reference of the Expert Group, inter-alia, includes examination of the existing structure of service tax and to make recommendations on extending the tax base in the area of services, and the timing thereof.

(e) & (f): The Expert Group has been asked to submit an interim report to the Government by the 31st October, 2000.