The Hindu Business Line : KCCI to hold meet on Nov 5 on future course of agitation

THE Kanara Chamber of Commerce and Industry (KCCI), Mangalore - which is observing a `non-compliance' agitation against service tax on payers of freight - has convened a meeting of all the trade associations and chambers of commerce in southern States on November 5 to decide the plan of action for the furtherance of agitation.

Addressing presspersons here on Monday, Mr A. Srinivasa Rao, KCCI President, said that out of the 78 services listed by the Government, `transport of goods by road' is the only service where the burden of tax payment has been shifted from service provider to service receiver. Traders are the major service receivers.

He said that an official release of the Union Finance Ministry had clarified that traders are out of the service tax net under this category. However, a Government notification dated December 3, 2004 has shifted the liability of service tax to traders. The Department of Central Excise is unable to provide proper explanations for queries on this aspect, he said.

Stating that a KCCI delegation submitted a memorandum to the Union Finance Minister, Mr P. Chidambaram, during his visit to Mangalore on Saturday, he said, "The Minister has assured the delegation to consider the matter on merits." Mr Rao said that the November 5 meeting of the trade associations from southern States would decide the plan of action for the furtherance of the agitation. Representatives of trade associations and chambers of commerce from Karnataka, Kerala, Tamil Nadu and Andhra Pradesh will attend this meeting, he said.

Traders began the non-compliance agitation in January.

Asked about the strategies being adopted by the trade bodies in other States, he said the trade bodies in Kerala have gone in for public-interest litigation in this matter.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page