The one thing I am confused about Service Tax

The heading is misleading to the extent that I seem to claim I know everything else about Service Tax! Obviously, that is not correct.

About all other types of service tax, I haven’t a clue. But, there is one service, such unreliable service at that, I have to give voice to my confusion. This is about religion, no differentiation, here. I am talking about RELIGION.

Some claim that being religious is good because it smoothens one’s perspective of bad times – good times are just round the corner, if only ...

That is a service, in my reckoning. I understand that religious establishments are out of reach of the taxperson (see, how gender neutral I am!) in India. But, service tax is levied on the devotee as (s)he is being offered a service. After all, my bill for buying medicines comes with a large service tax (I don’t think I can say the percentage before going into a swoon). So, why not the devotee at the place of prayer? Lest you misunderstand me, I am not demanding that temples/churches/mosques/sangas pay service tax. Let them merely serve as the conduit between the devotee and the Department of Taxes, a mere pass-through – surely you have heard how these so-called pass-throughs are exploited by hedge fund managers, another set of people providing service.

Say, now you pay Rs. 200/- to jump the queue, my suggestion is merely for you to pay Rs. 200/- + Service Tax and the temple will send the tax part of it to the government. Temples must be keeping scrupulous accounts, you agree.

If you are going to argue that prayer assemblies (moderated in whatever way) are not to be considered as places of service offerings, I would like you to talk to the devotees (you may be one of them) first. As said earlier, they do get comfort, mental it may be but a comfort nonetheless. More to the point, in the services sector, we do include, and I am sure there is a separate tracking of it, religious tourism. If the other segments of such tourism are levied service tax – for example, your bus ticket, the hotels you stay in, etc. – then, why cannot the temple charge you a service tax? Simple, ain’t it?

To conclude, if religious tourism is a sub-head under tourism, and tourism is a sub-head under services, then religious tourism, logic demands, comes under services and hence, someone, as usual, the ultimate beneficiary, the devotee must pay that tax.

This is why I am confused about not levying Service Tax on every aspect of religious tourism, including the charges at places of worship. Nothing but logic leads me to this conclusion. Before you say it, I know, logic and religion don’t sleep on the same bed. But, please do explain why they don’t.

Raghuram Ekambaram