Date:25/02/2007 URL: http://www.thehindubusinessline.com/2007/02/25/stories/2007022502711800.htm

Back Need for fair deal on service tax

When service tax was levied on services rendered by lorry transport agents, lorry transport agencies and transporters throughout the country resorted to nationwide bandh, paralysing the movement of essential goods, which forced the Union Finance Ministry to shift the burden of the levy on traders and industrialists.

This is against the very concept of the levy of service tax, which can and should be levied only on those rendering services and not on those receiving the services. It is blatantly unfair and unethical to simply shift the burden of the levy on another sector. The threshold limit of Rs 4 lakh annual value of services allowed for service providers in all other services is not available for consignors and consignees liable for this service tax being service receivers. The Finance Minister should opt for complete withdrawal of levy or at least remove partnership firms from the levy.

S. Rethinavelu, President,

Tamil Nadu Chamber of Commerce & Industry, Madurai