Our Bureau

New Delhi, Feb 28

Shipping operations costs are set to increase with the Union Budget proposing to levy a 12 per cent service tax on shipping management services.

Customers would also be required to pay higher for their cruises as travelling on cruise ships may attract a 12 per cent service tax with the Union Budget proposing to bring it under the service tax net.

It also proposes to bring down the value of fringe benefit tax (FBT) charged for `hospitality' and `use of hotel boarding and lodging facilities' - for the shipping industry, to five per cent instead of 20 per cent.

Moreover, for West Bengal, the Budget has proposed to carry out a detailed study.

(This article was published in the Business Line print edition dated March 1, 2006)
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