Despite the doubling of service tax from five per cent in March 2003 to 10 per cent in September 2004, the service sector continues to remain buoyant and along with the manufacturing sector, has provided the much-needed cushion to put India on the high growth trajectory, the survey said.
It revealed that the growth and development of the economy had spawned 63 new and emerging segments in the sector, which were now a viable part of the service economy.
These segments are over and above the 73 service providers, which have been under tax net since 1994.
The 63 viable segments fall under the categories of trade and transportation, IT, communications and entertainment, financial sector, construction and real estate, education, health and social sectors, legal services, ports and shipping and environmental and other miscellaneous services.
FICCI has suggested that the government evaluate these segments for augmenting resources for the national exchequer while carefully nurturing their growth through incentives and adequate credit facilities.
The survey, released after the national executive committee meeting in Kolkata on Tuesday, was based on the feedback from 25 public and private service sector firms, and experts of over a dozen sector related organisations.