With the growth in advance tax collections moderating this financial year, the revenue department is looking at widening the ambit of tax deducted at source to cover more services like credit rating agencies, market research firms and beauty
treatment clinics in order to increase income-tax revenues.
"We are examining whether TDS can be collected on all services which are under the service tax net," said a revenue department official.
A department committee, set up to look at ways to expand the TDS net, is scheduled to meet in Hyderabad to discuss the proposal.
While some services like contracts, construction and rentals are under the TDS net, a large number of services like beauty treatment, connectivity between mobile operators, event management, credit rating agencies, market research firms and authorised automobile service stations are not.
After deliberations, the panel is likely to suggest legislative changes to cover all 108 service categories which