Financial Daily from THE HINDU group of publications
Tuesday, Apr 12, 2005
Financial Daily from THE HINDU group of publications Tuesday, Apr 12, 2005 |
|
|
|
|
|
Industry & Economy
-
Taxation Call for service tax exemption on travel agents' forex earnings Our Bureau
New Delhi , April 11 THE Associated Chambers of Commerce and Industry of India (Assocham) has sought restoration of the Notification (No.21/2003) in the Finance Bill 2005-06 so that tour and travel operators are exempted from the payment of service tax on their foreign exchange earnings. With the removal of this notification in the Budget proposals for current fiscal, the tour and travel operators have become liable to imposition of service tax on their forex earnings, whereas they pay no service tax while sending people abroad. In a memorandum submitted to the Finance Ministry, the President of Assocham, Mr Mahendra K. Sanghi, said that tour operators render services to foreign tourists and promote India as a tourist destination and therefore, placing their services under the gamut of service tax makes little sense. For such transactions, the package is worked out overseas and these should be treated as exports and, hence, an exemption on service tax is called for, the Assocham President said. He pointed out that the Union and State Governments are already charging road, passenger, toll, luxury and sales taxes on the proceeds of travel operators, which in percentage terms work out to be between 35 per cent and 40 per cent.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|