Govt kitty to add Rs 1,200 cr from new services to be taxed

NEW DELHI: The government on Tuesday said the new services brought under the service tax net would contribute about Rs 1,200 crore to the exchequer this fiscal.

"We are expecting about Rs 1,200 crore on account of new services introduced," Central Board of Excise and Customs Chairman P C Jha told reporters here.

Finance Minister Pranab Mukherjee included some more services within the service tax ambit in the Budget 2009-10.

He extended service tax to be levied on advice, consultancy or technical assistance provided in the field of law and transport of goods through railways coastal cargo or inland waterways.

Mukherjee in his Budget speech had said that his indirect tax proposals would yield a net gain of Rs 2,000 crore for the full year.