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Demand exemption from service tax
July, 22nd 2009

July 21 Exporters today asked the government to exempt movement of export goods through rail and inland water ways from service tax to tide over the global economic crisis.

Apex exporters body Federation of India Export organisations (FIEO) President A Sakthivel has sought the intervention of Finance Minister Pranab Mukherjee in this regard.

In the Budget 2009-10, the government has exempted the exporters from paying service tax on the movement of export goods by road.

".The imposition of service tax on additional services like rail/ inland water ways would result in a steep hike in the cost of doing business in India and further increase the number of payments being made for business related activities," Sakthivel said in a statement here.

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