Financial Daily from THE HINDU group of publications
Tuesday, Jun 22, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jun 22, 2004 |
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Industry & Economy
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Budget Indian Chamber seeks cut in service tax rate Our Bureau
Coimbatore , June 21 A SUGGESTION to the Centre to reduce the service tax rate and entrust the responsibility of administering it to the Income-Tax Department has been made by the Indian Chamber of Commerce and Industry (ICCI), Coimbatore. It has also sought taxing of agricultural income in excess of Rs 1 lakh to improve revenue generation. In a pre-Budget memorandum presented to the Finance Minister, Mr P. Chidambaram, the ICCI President, Mr A. Sakthivel, said the present 8 per cent service tax levy had raised the cost of various services to the disadvantage of the public and sought its reduction to 4 per cent. The Excise and Customs departments were "not able to handle" the service tax matters effectively and wanted it to be brought under the control of the Income-Tax Department since it was better equipped to handle tax issues and had the required infrastructure. He pleaded that exporters be allowed to get 100 per cent tax exemption on their earnings. The adoption of guideline value for computing capital gains should be dropped and actual sale consideration only should be taken into account to determine capital gains. The ICCI President said to increase revenue, agricultural income in excess of Rs 1 lakh should be taxed. For I-T purposes, the minimum income limit should be raised to Rs 1 lakh and the maximum tax rate should be levied only on income above Rs 10 lakh. He said the depreciation rates on capital goods should be increased to encourage modernisation and upgradation and investment in capital goods. The Settlement Commission and the Commissioner of I-T should have the power to waive interest and interest should be restricted to total quantum of tax. Mr Sakthivel, who met the Finance Minister in New Delhi, wanted rationalisation of excise duty and sought removal of restriction on claiming credit under Cenvat.
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