Date:17/09/2004 URL: http://www.thehindubusinessline.com/2004/09/17/stories/2004091701571900.htm

Back Basic exemption for service tax levy sought

Our Correspondent

Madurai , Sept. 16

THE Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Minister, Mr P. Chidambaram, to issue immediately a notification granting reasonable basic exemption limit for service tax.

In a statement, the chamber President, Mr S. Rethinavelu, has pointed out that such an exemption has been granted in respect of income-tax, sales tax, excise duty etc. Referring to the Finance Act 2004-05 that added 13 new services under the service tax levy and the gradual enhancement of the rate of tax from 5 per cent to 10 per cent now, he said that the small service providers had not been given any succour.

If the requested exemption is granted, the small service providers would get relief and the revenue loss to the Government would only be negligible, he said.