Industry body ASSOCHAM gave a detailed presentation before the finance ministry on how to accelerate the pace of industrialization, promote investments in infrastructure and rationalize provisions of direct tax laws to widen the tax revenue base.

As a pre-Budget exercise, ASSOCHAM members met finance secretary Mr RS Gujral chairman of the Central Board of Direct Taxes Mr MC Joshi and chairman of the Central Board of Excise and Customs Mr SK Goel to suggest measures on how to make the Indian industry competitive and create a common economic market through Goods and Services Tax.

The delegation led by Mr Ved Jain, chairman of ASSOCHAM National Council on Direct Taxes, discussed issues relating to customs duties, excise duties, service tax, CENVAT credit and central sales tax.

The scope of CENVAT credit on input services purely relating to business operations should be clarified. Tax collection at source should be introduced on cash transactions in bullion, precious and semi-precious stones and jewellery.

ASSOCHAM members said service tax should be extended to all services except health, education, defence, religious and charitable services, services like entertainment, deemed sales and luxuries taxed by states until GST is introduced.

The term ‘service’ should be clearly defined to reduce litigation, they said. For real estate transactions, there should be uniformity and reduction in stamp duty rates