Points to Improve Indian Services Sector
What needs to be done to improve sector further? Give suggestions.
Policy suggestions for services sector in the short term
Tariff & Tax related * Addressing the issue of multiple levies & duties in telecom. Such as need for clarity on applicability of sales tax or service tax on IT Software. Resolving the difference of opinion between the Central Government and
State governments on taxability of certain items like SIM cards, recharge coupons, bill plan rental, handsets/modems, IT software, etc. leading to double taxation on the same transaction. * Rationalizing taxes in shipping sector. It will help in strengthening the Indian fleet. * Allowing advance tax instead of tax deduction at source (TDS) in some services like engineering and construction. * Introducing electronic system of tax payment for tourist vehicles. * Addressing the issue of Royalty/Turnover tax by Airport authorities on service centres. It will help service centres in providing better support to its customers.
Disinvestment
* Initiating disinvestment in atleast 9 PSUs (out of 27), namely, SCI, EIL, RITES, EPIL, ITPO, STC, MMTC, NBCC and NFDC. It will not only yield sizeable revenue for the government, but also make these companies more efficient contributing to the growth process.
FDI
* Opening some segments of insurance sector like health insurance and removing the 10 year disinvestment clause in the insurance sector * Liberalising foreign investment in rural banking with the help of mobile technology. Some segments of the banking sector could be opened up to foreign investment in areas like rural Banking with the help of mobile technology. * Relaxing the minimum area norm in construction sector. * Raising foreign investment cap for uplinking news and current affairs TV channel from 26 per cent to 49 per cent. * Making available FDI policy in the website in a user friendly way
Domestic regulation * Addressing restrictions on
Policy suggestions for services sector in the short term
Tariff & Tax related * Addressing the issue of multiple levies & duties in telecom. Such as need for clarity on applicability of sales tax or service tax on IT Software. Resolving the difference of opinion between the Central Government and
State governments on taxability of certain items like SIM cards, recharge coupons, bill plan rental, handsets/modems, IT software, etc. leading to double taxation on the same transaction. * Rationalizing taxes in shipping sector. It will help in strengthening the Indian fleet. * Allowing advance tax instead of tax deduction at source (TDS) in some services like engineering and construction. * Introducing electronic system of tax payment for tourist vehicles. * Addressing the issue of Royalty/Turnover tax by Airport authorities on service centres. It will help service centres in providing better support to its customers.
Disinvestment
* Initiating disinvestment in atleast 9 PSUs (out of 27), namely, SCI, EIL, RITES, EPIL, ITPO, STC, MMTC, NBCC and NFDC. It will not only yield sizeable revenue for the government, but also make these companies more efficient contributing to the growth process.
FDI
* Opening some segments of insurance sector like health insurance and removing the 10 year disinvestment clause in the insurance sector * Liberalising foreign investment in rural banking with the help of mobile technology. Some segments of the banking sector could be opened up to foreign investment in areas like rural Banking with the help of mobile technology. * Relaxing the minimum area norm in construction sector. * Raising foreign investment cap for uplinking news and current affairs TV channel from 26 per cent to 49 per cent. * Making available FDI policy in the website in a user friendly way
Domestic regulation * Addressing restrictions on