The Hindu Business Line : `Services provided by minor ports in Karnataka brought under tax net'

THE Commissioner of Customs and Central Excise, Mangalore, Mr P. Karthikeyan, has said that minor ports and services provided by them have been brought under the service tax net with effect from July 1.

Participating in an open house discussion on "Service tax law and procedures" organised by the Kanara Chamber of Commerce and Industry (KCCI) here , he said minor ports such as Bunder in Mangalore, and Tadadi and Belekeri in Uttara Kannada district and the service provided by them have come under the tax net.

Mr Karthikeyan said services in relation to promotion, marketing or sale of goods or services provided by the client, customer care service provided on behalf of the client, services such as billing, collection, recovery of cheques, accounts and remittance, and evaluation of prospective customers and public relation services come under the service tax net under the business auxiliary service category.

He said under the franchise service category, fees paid by the franchisee to the franchiser is leviable to service tax. Eight per cent of the fee being collected at the Internet cafes is collected as service tax.

The Commissioner said that the services provided by a commissioning and installation agency in respect of plant, machinery, and equipment also come under the tax net.

Service tax should be paid by any establishment imparting commercial training and coaching. However, vocational training centre, and computer and recreational training institutes are exempted from the service tax, he said. Any service in relation to physical, chemical, biological, or any other scientific testing or analysis of goods, material or immovable property comes under the service tax net.

Mr Karthikeyan said 58 services have been included in the list of services leviable to service tax.

Stating that agriculture, manufacture, and service sectors are the indicators of the growth of the economy, he said in India service tax was introduced for the first time in 1994. However, agriculture sector is not taxed, he added.

Earlier, the President of KCCI, Mr R.D. Kini, welcomed the gathering.

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