Monthly Archives: February 2016

Taxi rate, mileage and taxes

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In the indian internet sector, officials want to falsely claim that domain investors are providing a service and are avoiding paying taxes to harass, cheat and exploit them. In reality if at all, service tax has to be imposed, it should be only on the service part. For example for a taxi from Mumbai airport to a suburb, a taxi service will charge around 5% of the fare as service tax, instead of the 14.5% standard service tax, as the fuel cost and investment in the vehicle are also a major part of the expenses of providing the taxi cab service.
The actual profit made by the cab owner will also depend on the fuel efficiency or mileage of the vehicle, whether an ac or non ac cab will be hired, condition of vehicle including tyres .
When a domain investor is selling an expensive domain, they are not providing a service, yet large corporates in the indian internet services will make fake allegations that he or she is providing a service to force them to pay a large amount and face losses.