Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: list of goods taxed at 4% :: cpt :: due date for vat payment :: form 3cd :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
 
 
Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

RPT-BUDGET VIEW-India shipping firms want service tax to go
February, 16th 2009

Indian shipping firms have sought exemption from service tax on input services in the federal interim budget 2009 to be presented on Feb. 16.

Indian shippers pay a service tax of 12.36 percent for some 27 services including ship management, manpower recruitment, brokerage, which firms overseas do not pay, trade body Indian National Shipowners' Association (INSA) said.

Indian container operators providing services on time-charter pay a similar service tax of 12.36 percent, which their foreign counterparts do not pay.

"On an average, the effective tax on Indian companies is 3-4 percent more compared to the foreign ones. This is an inherent handicap for Indian companies - this tax," S.S. Kulkarni, secretary general of INSA, said.

Higher taxes skew the playing field for local companies against foreign shipping firms, who do not have to pay any tax for shipping cargoes, hurting profitability, Kulkarni said.

"The shipping industry operates on a global level. We are only asking the government to make it equally competent for us. There is 100 percent FDI for shipping in India, then why don't foreign lines flag ships from here?" Kulkarni added.

India's Mercator Lines Ltd (MRCT.BO: Quote, Profile, Research), which has diversified into mining recently, floated a subsidiary in Singapore in 2007, due to favourable tax regime there, analysts said.

Interestingly, other Indian firms are doing the same as buying a vessel from Singapore is cheaper due to a string of taxation issues, they added.

"If you have to compete in the international market, you have to operate the way your competitor does. If they do not pay taxes, why should you?" an analyst from a foreign brokerage, who could not be identified, said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions