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: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT Audit :: empanelment :: due date for vat payment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: ACCOUNTING STANDARDS :: cpt
« Service Tax »
 Benefits of GST to home buyers In the next lifetime
 GST: Jaitley says yes to cess, no to additional tax for compensating states
 GST to enhance ease of doing business, says Assocham
 Govt sources say cess is a better option than high tax rate
 Goods and Services Tax: There should not be more than three grades of rates, says Chidambaram
 Chidambaram says there cannot be multiple tax slabs in GST
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C

Service tax: Industry deplores hike
March, 17th 2012

The Union budget 2012 - 2013 evoked mixed response from the trade community in Madurai.

While the Tamil Nadu Chamber of Commerce and Industry (TNCCI) welcomed several aspects of the budget, the Madurai District Tiny and Small Scale Industries Association (MADITSSIA) termed it as a disappointing one.

"Finance minister Pranab Mukherjee has managed to present a responsive budget addressing the cross-sectional concerns of the tax payers, industry and the farmers," said TNCCI senior president S Rethinavelu. "The announcement that Goods and Services Tax Network (GSTN) will become operational by August 2012 is a welcome one. The highly proactive tax system which would subsume Central Excise, Service Tax and state-level value added tax would provide the tax set-off benefit to trade and industry even for the inter-state sales. As of now, traders cannot set-off service tax paid by them in the value added tax payable by them," he said.

However, TNCCI felt that there was no justification in raising the service tax rate and standard rate of excise duty from 10% to 12% at this stage as it will further burden the domestic industries and service providers and increase the cost of products and services and escalate the inflationary trend. The proposal to tax all services, except those in the negative list would lead to confusion and lead to unnecessary litigations and put entrepreneurs at the mercy of the tax officials. However, the proposal to introduce advance ruling system in Central excise levy and service tax will considerably reduce litigations.

"Yet another laudable feature of the budget is the slew of measures proposed to detect unaccounted money and the decision to table white paper on unaccounted money in current session of parliament," TNCCI president N Jegatheesan said. He also noted the proposal in the budget to bring down the excise duty rate from 10% to 6% for semi-mechanized safety match units which was based on the specific request made by TNCCI.

Meanwhile, MADITSSIA said the Union budget has not revealed any concession for medium and small-scale enterprises (MSME). MADITSSIA was also sore over the increase of excise duty and service tax from 10% to 12 % which it termed as a big blow to the MSME sector. "This will lead to price rise of all goods affecting ordinary and middle class people," said V S Manimaran, the association president.

"Though the Union finance minister had stated that MSME sector is the backbone of our economy and contributes to 40% of total production of India, the request made by association for interest subvention is not heeded to, which is disappointing," he said.

He said that the finance minister also failed to exempt exercise duty for semi-mechanized matches, reducing the duty by 4% despite request from the industry. However, MADITSSIA welcomed the 3% interest subvention for self-help group women for prompt payment and an additional 3% interest subvention for farmers.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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