Financial Daily from THE HINDU group of publications
Wednesday, Jan 12, 2005

Port Info

Group Sites

Agri-Biz & Commodities - Taxation

Wholesalers to protest against service tax in Mumbai

Our Bureau

Mumbai , Jan. 11

WHOLESALE agriculture produce markets at Vashi (Navi Mumbai), dealing in essential commodities such as food grains, sugar, jaggery and coconut, have decided to stop both loading and unloading from Wednesday night.

This decision by the Grain, Rice and Oilseeds Merchants' Association (GROMA) and other major wholesale trade organisations is to protest against the 10.20 per cent service tax.

The Government issued a notification on December 3 under which, the burden of service tax of 10 per cent and education cess of 2 per cent was, from January 1, shifted from transport operators to customers (traders).

The existing stock of all essential commodities are exhausting fast as the arrivals from the producing centres have been stopped from January 1, said Mr Sharad Maru, President of GROMA. As a result, there will be short supply of essential and other commodities, he said.

The trader who is responsible for payment of freight for goods brought by road transport is also responsible for service tax payment.

Those responsible for the payment have to obtain registration from the Excise Department and pay the service tax within 25 days from the end of the month, sources said.

Essential commodities such as food grains, pulses, oilseeds, consumed by both the higher and lower income groups, are subject to 10.2 per cent service tax. However, fruits, vegetables, eggs and milk are exempted from the tax.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Open interest positions in sugar futures dip

Banks look up to 'kisan melas' to market farm loans
'India set for big leap in mussel production'
Tsunami: Fish safe for consumption, says study
Variety-specific fertiliser for banana launched
Rubber prices under pressure
Wholesalers to protest against service tax in Mumbai
Centre okays coir cluster project for Alappuzha
Refiners lobby for change in carotenoid level
Farm sector moots revolving fund for oilseeds
Commerce Ministry for scrapping export cess on coffee
Cured vanilla bean production estimated at 60 tonnes
YSR lays stress on micro irrigation project targets

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, 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