Service Providers be ready to fulfill the Dream of Modi’s  ‘Swachh Bharat’

An article by: CA Pradeep Jain &

Bharat Rathore

It is a regular practice of the government to follow tactics that are illusive and misleading. One of the tricks adopted by the government while increasing the rate of service tax is that during the Budget Speech, the Hon’ble Finance Minister announced increase in rate of service tax from 12.36% (inclusive of Education Cess and SHE Cess) to 14% (after exemption from Education Cess and SHE Cess). However, the effective rate of service tax that will come force after the Finance Bill receives the assent of the President is 16% because a new Cess has been introduced by the government in the Finance Bill, 2015. Hence, the government knew that there will be opposition from the people regarding hike in service tax from 12% to 16% and so it chose to increase the rate of service tax in indirect manner, thereby burdening the common man.

The Finance Minister has announced Budget on 28th of February, 2015, wherein a new chapter VI has been inserted in the Finance bill that contains a new levy of cess called the ‘Swachh Bharat Cess’. This chapter empowers the government to impose Cess on all the taxable services at the rate of 2% of the value of taxable services. This cess shall be levied from such date as may be notified by the Central Government after the enactment of the Finance Bill, 2015.

It is worth observing that the Government has not given any further details of this levy ” Swachh Bharat Cess”. Consequently, a number of questions are haunting the minds of the assessee as follows:-

1. Whether there will be new accounting head for deposition of this cess?
2. Whether Cenvat credit of this cess will be available or not because there are no amendments proposed in the Cenvat Credit Rules, 2004?
3. Whether there will be restriction as regards utilisation of cess as was in case of Education Cess and SHE Cess or not?

The above cited questions will remain unanswered until the enactment of Finance bill, 2015. But it seems that in respect of indirect tax, Government’s main focus on service tax. They are going to raise the rate of service tax from 12.36% to 14% and then this Swachh Bharat cess of 2% of the value of taxable service is also applicable on all services. We can say that Government has indirectly enhanced the rate of service tax to 16% after enactment of Finance bill.

It’s also seems that service providers will play the main roll in fulfilling Mr. Narendra Modi’s Dream of Swachh Bharat. His dream will be fulfilled with the provision of services by the service providers. However, with the introduction of this levy and the hike in the service tax rate, the burden of tax on the common man has definitely increased as service tax is an indirect tax regime whose ultimate burden is to be borne by the service recipient. It is to be observed that how far the new government would be able to meet out the expectations of the public who had instilled confidence in the said government to reduce the inflation.  

In today’s time when the world has turned into a global village it has become essential for businesses to have virtual presence to remain in the race. It is important to go with the contemporary flow where the marketplace has essentially taken over the virtual world. Today, online business suits the lifestyle of not only the sellers but also the buyers. Who won’t like shopping from the comfort of home and getting delivery of the goods at their door step.

With the shopping facilities increasing for the buyers, the virtual world has also come up with various flexible options for different types of businesses to benefit from the Internet.

If you wish to make your business a part of the vast realm of online market place, this article is for you. In this article we give you the different ways you may choose from, in order to have online presence.

1. Having a Business Website.

It is the most basic, simple and affordable our of all the measures that can be taken. All you need is some knowledge about handling website, or you may hire some professional to do the need full. Every kind of information regarding your business, products and the ways to contact you can be provided on the Website.

2. Providing a Business email id.
 
Having an email id is essential for varied reasons. It’s also free of cost to create and maintain an email id. It is helpful in building credibility and interacting with your customers, in a way growing your business.

3.Chat online.
 
A lot of online business sites maintain live chat facility on their website. The customers may login any time to have a comfortable chat with one of the representatives. Their doubts and grievances can be addressed through the chat itself. According to many who were first reluctant to go for this option, the chat facility has turned out to be the single best marketing tool.

4. Offering an e-newsletter.

Sending a newsletter time to time via email establishes you as an expert. By interacting with your customers using their personal email you open new gates for creating a relationship with them.

5. Advertise online.

Advertising online helps in having wider reach. Shift from the newspaper and pamphlet thing to advertising online. Various sites hold advertisements for organisations. You may choose any advertising network and ask for advertising your business in forms like Contextual PPC, Display, Mobile & Remarketing ads etc.

6. Have a Blog!

Having and maintain a blog is a trend that has developed lately. Organisations and businesses spread information about the facilities they provide, by writing interesting articles. You are free to add general and current information to attract wide range of customers.

7. Social Media.

Having accounts on Facebook, Twitter and other prevalent social media platforms bring you closer to the customers. It gives you a chance to be virtually present in their circle and be a part of them. Also it is an excellent medium to advertise and attract a large amount of customers at one go!

All these definitely give your business a solid foundation in the market along with amazing marketing and customer following, however, the most essential thing, in order to attain success and retain customers, in long run, is to register your company. Attaining a legal reputation helps in numerous ways like getting loan, raising money through public, having reputation among customers, in projecting cost and risk factors etc. All in all it helps in taking business to the next level. In order to register your company by an easy, hassle free and thorough process contact eFilingportal.in
 
Do you have something to add? Please leave your thoughts in the comment box. Keep visiting Register a startup and Business Registration for more such information.