Date:02/03/2007 URL: http://www.thehindu.com/2007/03/02/stories/2007030202070500.htm

Tamil Nadu - Chennai

Hike in service tax exemption limit hailed

Staff Reporter

CHENNAI: Small and medium industry associations in the State on Wednesday welcomed the increase in service and excise tax exemption limit announced in the Union budget.

The Tamil Nadu Small and Tiny Industries Association said the proposals to cut in Central Sales Tax and remove the surcharge on income tax for firms with a taxable income of Rs. 1 crore or less were positive.

The Federation of Associations of Small Industries of India, the Tamil Nadu Association of Cottage and Micro Industries, the Chennai District Small Scale Industries Association and the Guindy Industrial Estate Manufacturers Association echoed these sentiments. The Ambattur Industrial Estate Manufacturers Association felt the excise exemption limit could have been higher.

Increase flayed

Several associations also expressed disappointment at the increase in the education cess and the continuation of the fringe benefit tax. The TANSTIA termed "positive," the Finance Minister's advice to banks to take the credit ratings of small and medium units into account while fixing interest rates.