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: list of goods taxed at 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: cpt :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit
 
 
News Headlines »
 Income tax dept notifies amendments for sharing taxpayer information
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya

Govt urged to scrap service tax on inland haulage, THC overseas
July, 19th 2006

The Engineering Export Promotion Council (EEPC) has sought the immediate withdrawal of service tax on inland haulage and terminal handling charges (THC) overseas on the plea that the tax is "unjustifiable."

Speaking to Business Line, Mr Rakesh Shah, Chairman of the EEPC, said that the council has already represented the matter to the Union Commerce Minister, Mr Kamal Nath.

He was particularly referring to the levy of service tax, as per a provision in the Finance Act 1994, in a situation where taxable services have been provided India and the provider of such services was an overseas agent not located in India.

He said that while service tax on ocean freight and air freight has been waived, the freight element provided by foreign agents overseas for inland haulage (rail/road, riverine mode, especially in the case of some land-locked countries), and THC at overseas destinations attract service tax of 12.24 per cent.

Describing such levies as being counter-productive to Government efforts in making Indian exports price competitive, he said that vendors based in foreign countries often push for a complete package of services that involve storage, warehousing, clearing & forwarding operations, and haulage from port to their factories/establishments.

He said that levy of service tax including educational cess on such services was illogical. "It goes against the Government's very stand that tax and duties are not to be exported."

Stating that Indian engineering exports, in particular, were becoming uncompetitive to the extent of eight per cent, he said: "There should not be any service tax on post-production export-related services."

Mr Shah expressed disappointment over the recent DGFT notification in respect of the Target Plus scheme, where the duty credit entitlement of 10 per cent and 15 per cent benefiting those who had achieved incremental exports of 25 per cent or more in f.o.b. value of their exports during licensing year April 1, 2005 to March 31, 2006 has been deleted with retrospective effect.

He also said that exporters generally factor in all Government incentives into their costing.

"If such efforts are nullified by a notification after a gap of 15 months, and that too, retrospectively, it has a demoralising effect, and also goes against accepted trade practices."

Mohan Padmanabhan

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Outsourcing Test Solutions Software Testing Software Bug Testing Software Issues Tracking Software Issue Fix Software Code Optimization Database Design Optimization

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