Financial Daily from THE HINDU group of publications
Friday, Nov 11, 2005
Financial Daily from THE HINDU group of publications Friday, Nov 11, 2005 |
|
|
|
|
|
|
|
Industry & Economy
-
Small Savings Plea on small savings scheme sops Our Correspondent
Madurai , Nov. 10 THE Tamilnadu Foodgrains Merchants Association (TFMA) has observed that the suggestion by the Review Committee on sops/exemptions offered to various small savings schemes is detrimental and should be withdrawn. The committee's recommendation to withdraw the sops and exemptions is contrary to the recommendations made by the Chairman of the 12th Finance Commission and subsequently by the Reserve Bank Governor that advocated a high rate of interest to boost saving culture among the public. The Committee's Exempt, Exempt And Tax proposal is detrimental and will not enthuse saving habit among the public, the association said. The association further said in a statement that as in the case of Central Excise, a scheme of exemption should be introduced even in the case of service tax by which service tax providers whose taxable service is less than Rs 5 lakh in a financial year get exempted from service tax liability. The tax that started with just three services in 1994 at a moderate rate of 5 per cent and a tax collection of Rs 407 crore, has grown to Rs 7,890 crore in 2003-04. The target aimed for 2004-05 is Rs 14,000 crore. But unfortunately in the process, small taxpayers are put to undue hardship. In addition, contrary to the ethics of service tax, the liability on Goods Transport Agents has been shifted to traders, creating ripples in the trading sector, it has said. , It said that the levy on deemed fringe benefits would lead to more tax evasion.
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
|