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Plea to change amendment on Cenvat credit in Budget
Our Correspondent
Madurai, March 5 The Tamilnadu Chamber of Commerce and Industry while welcoming the amendment on Cenvat credit in the Budget, has made a plea to make it effective from January 1, 2006 instead of from March 1, 2008.
The chamber, in a statement, drawing attention to the withdrawal of the benefit of Cenvat credit on goods transport agency together with the removal of the condition of obtaining declaration in L/R to become eligible for 75 per cent abatement for the tax, said that the amendment has facilitated the consignors/consignees pay service tax only on 25 per cent of the lorry freight charges whenever they are liable to pay the tax.
While thanking the Finance Minister for conceding the demand of traders and industrialists to levy service tax only on service providers and not on receivers, the chamber pointed out that the amendment has been made effective only from March 1 this year.
It pleaded that as traders and industrialists have been severely impacted by the inconsistencies in the levy earlier, and in all fairness, the effective date of amendment should be preponed to January 1, 2006, when the service tax on goods transport agency (GTA) was introduced.
The chamber further pleaded for the extension of the basic exemption limit of Rs 10 lakh for the levy applicable for all other services to consignors/consignees also in respect of service tax on GTA.
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