Financial Daily from THE HINDU group of publications
Sunday, May 07, 2006
Financial Daily from THE HINDU group of publications Sunday, May 07, 2006 |
|
|
|
|
|
|
|
Industry & Economy
-
Taxation Logistics - Airlines Service tax: Loaded wings D. Murali
Chennai , May 6 The service tax of 12.24 per cent levied on all international air tickets since May 1 will affect the global business of Indian airline companies, says Dr Sanjiv Agarwal, a Jaipur-based Chartered Accountant and a service tax expert. "On the one hand we are opening up the Indian economy, and we want to promote mobility. But on the other, we impose a stiff tax such as the recent levy," he says. "Adverse impact would be on tourism, BPO and KPO sectors too." What is more worrying than the policy dichotomy is the confusion that the tax administration would have to face, points out Dr Agarwal. "When you book the ticket abroad, the transaction would go outside the service tax net. There can also be instances of travel from India on the international circuit using tickets sent from abroad." Determining who the service provider is going to be a tough task in many cases, says Dr Agarwal. He doesn't foresee that the airline companies would set off their service tax liability against whatever input tax credit they may enjoy. "As a result, the whole service tax burden would end up on the passenger," adds Dr Agarwal.
More Stories on : Taxation | Airlines
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 | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, 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
|