Friday, June 5, 2020

Service Tax

Service tax in a line. Each and every service providers should have a Merchant Bank Account. Customers as usual will get 8% cashback and accrual of points. More the points, more the chance of getting lucky lot price from the government. So, customers would like to get more points. But Merchants can't bloat bills, because more bills, more service tax. Let's put service tax at 15% or 20%. Merchants can't increase the price, because there is an open competition from other Merchants.

Suppose the government charges 20% service tax, 5% may be reserved for lucky draw. This is for small customers, but beyond certain lakhs or crores, 5% reduction of service tax can be given, for like big software companies and they should transfer this benefit to high value customers.

No comments: